USA – NEVADA Trends and Developments Contributed by: Robert E. Armstrong, Zach Noland and Ian DeValliere, McDonald Carano
McDonald Carano LLP Tenth Floor, 100, West Liberty Street, Reno, NV 89501, USA Tel: +1 775 788 2000 Fax: +1 775 788 2020 Email: rarmstrong@mcdonaldcarano.com Web: mcdonaldcarano.com
Nevada’s appeal as a private-wealth destination con - tinues to grow in 2026, supported by the sustained expansion of global private wealth, a legal environ - ment few states can match, and ready access to international-travel hubs and the major cities of the western United States. Daniel G. Worthington and Mark Merric again ranked Nevada among the top-tier US trust jurisdictions in their biennial Trusts & Estates article “Which Situs Is Best in 2026?” Although Nevada’s top-tier standing seems to have become a settled matter, the past year of private-wealth practice in Nevada was less predictable. Many expected it to be dominated by the long-anticipated (and ultimately averted) federal transfer-tax sunset, but it was instead shaped more by an accelerating influx of California and Washington residents, an explosion of Nevada retail and family trust company formations, newly effective legislation from the 2025 Legislative Session, and a handful of appellate decisions refining the practical limits of Nevada’s privacy and jurisdiction statutes. A discussion of these significant trends follows. A “Permanent” Transfer-Tax Exemption For several years, the impending expiration of key provisions of the Tax Cuts and Jobs Act (“TCJA”) at the end of 2025 significantly influenced Nevada private-wealth practice. The TCJA had doubled the federal transfer-tax exemptions from USD5 million to USD10 million per individual which, adjusted for inflation, reached USD13.99 million in 2025. Absent Congressional action, these exemptions were expect - ed to revert to approximately USD7 million in 2026, which led to urgent planning among ultra-high net
worth families. Nevada practitioners saw a surge in the creation of spousal lifetime access trusts (“SLATs”) and long-term irrevocable dynasty trusts to lock in the higher exemptions, with advisers urging clients to act swiftly because retroactive legislation remained speculative. Fortunately, the One Big Beautiful Bill Act (“OBBBA”), signed into law on 4 July 2025, eliminated the TCJA sunset and established the unified exemption and GST exemption at USD15 million per individual (USD30 million for married couples) beginning 1 January 2026, with inflation indexing resuming in 2027. And, because the increases carry no scheduled expiration date this time, they are commonly described as “permanent” (although, as with any tax provision, a future Congress could revise them). For Nevada private-wealth practice, the practical effect is a shift in the character of demand rather than a decline. Clients are no longer gifting merely to avoid losing exemption, but the planning ration - ale that has long favoured Nevada does not depend on any impending sunset. Families that set up SLATs and dynasty trusts in 2024 and 2025 are now turning to administration, funding, and refinement of those structures, and the increased exemption has expand - ed the headroom for additional gifting into existing Nevada trusts. At the same time, the “permanent” label is understood to be politically contingent: with a potential change in Congress’s balance of power, many advisers continue to counsel clients to use avail - able exemption and build flexibility into their trusts,
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