Nevada has become one of the most sought-after states in the country for trust planning, and for good reason. Its statutes offer some of the most flexible and family-friendly trust laws in the nation, including no state income tax on trust income, a statutory rule against perpetuities with a 365-year outside period, and strong asset protection provisions. For families and companies looking to take full advantage of these benefits, forming a family trust company in Nevada is an increasingly desirable option.

A family trust company (FTC) is a state-chartered or licensed entity that serves as trustee for trusts held by a single family or a defined group. Unlike commercial trust companies, a family trust company does not solicit the general public. This distinction shapes every part of the formation process, from the licensing category you apply for to the ongoing regulatory requirements you must meet.

This guide walks through the formation process step by step, based on Nevada’s statutory framework and the requirements administered by the Nevada Division of Financial Institutions (DFI).

What Is a Family Trust Company Under Nevada Law?

Under Nevada law, a family trust company serves as trustee for a family or affiliated group without soliciting business from the general public.

Nevada Revised Statutes (NRS) Chapter 669A governs family trust companies in the state. Under NRS 669A.110, a family trust company is not required to be licensed under Chapter 669A or 669 and may operate without a license, though it may choose to apply for one. Nevada also recognizes a category known as a retail trust company under NRS Chapter 669A, which imposes its own distinct set of requirements, including a $1,000,000 statutory minimum capital requirement.

The key distinction matters from the start: a standard licensed retail trust company under NRS Chapter 669 may serve a wider client base, while a family trust company under NRS Chapter 669A is restricted to serving a single family and their affiliated trusts and entities. Choosing the correct structure before filing anything is critical.

Step 1: Choose the Right Entity Type and Structure

The first step is to select the appropriate legal entity and determine whether to organize as a retail trust company or a family trust company.

Most family trust companies in Nevada are formed as limited liability companies or corporations under Nevada law. The entity must be organized before the license application is filed. Work with legal counsel to determine whether the NRS Chapter 669 or Chapter 669A framework better fits your family’s goals, the number of trusts involved, and your long-term wealth management plans.

For families with complex multi-generational structures, Chapter 669A’s family trust company designation often provides a cleaner regulatory path, since it is designed specifically for single-family use and permits operation without a license, though a licensed FTC voluntarily submits to DFI supervision.

Step 2: Meet the Capital Requirements

Nevada requires licensed family trust companies to maintain statutory minimum stockholders’ equity levels, while retail trust companies must maintain levels set under Chapter 669.

Under NRS 669A.160, a licensed family trust company must maintain at least $300,000 in stockholders’ equity, paid in cash before commencing business. For a family trust company under Chapter 669A, the minimum stockholders’ equity requirement is $300,000, paid in cash, excluding organization expenses, though the FID may require more depending on the scope of the company’s planned activities and the assets under management. By contrast, Chapter 669 sets a $1,000,000 minimum statutory capital requirement for retail trust companies under NRS 669.100.

This capital must be unimpaired and maintained on an ongoing basis. Demonstrating sufficient capitalization is a central element of any license application, and the DFI will scrutinize the company’s financial condition carefully.

Step 3: Prepare and Submit the License Application

Applicants seeking licensure must submit a complete license application to the Nevada Financial Institutions Disision, including organizational documents, background information, and a business plan.

The FID application requires:

• Organizational documents for the entity (articles of incorporation or articles of organization)
• A detailed business plan describing the nature and scope of trust activities
• Background investigation forms for all directors, managers, and principal officers
• Financial statements demonstrating required capital
• A description of the trust accounts and relationships the company for licensed entities will service

The FID conducts a thorough background review of all persons involved in the company’s management and control. Any history of regulatory action, financial crimes, or similar issues must be disclosed and can affect approval.

Application fees and processing schedules vary. Applicants should budget for a review process that can take several months, depending on the completeness of the submission and the DFI’s current workload.

Step 4: Establish Policies, Procedures, and Governance

Before approval and thereafter, the licensed FTC must have written policies covering fiduciary duties, conflicts of interest, recordkeeping, and trust administration.

The FID expects a licensed family trust company to operate with the same seriousness of governance as any regulated financial institution. That means documented policies for investment management, trustee decision-making, conflict-of-interest protocols, and recordkeeping. These policies are reviewed during the application process and are subject to examination after licensure.

Governance structure matters too. Directors or managers of retail trust companies must meet mandatory FID fitness standards under NRS 669.117. Licensed FTCs must maintain appropriate governance controls, and the company must maintain proper meeting records and corporate formalities.

Step 5: Maintain Continuous Compliance

Licensed family trust companies are subject to periodic examination by the FID and must file annual reports and maintain required capital at all times.

Once licensed, a family trust company does not operate free from regulatory supervision. The DFI conducts periodic examinations and requires annual report filings. The company must maintain its minimum capital, keep accurate books and records, and notify the DFI of material changes to its structure, ownership, or operations.

Remaining compliant with these ongoing obligations is just as important as getting the initial license approved.

Work With Attorneys Who Know Nevada Trust Company Law

Forming a family trust company in Nevada involves multiple regulatory steps, significant capital commitments, and continuous compliance responsibilities. The process rewards detailed preparation and careful legal guidance from the outset.

Saltzman Mugan Dushoff represents clients in Nevada banking and trust company law matters, including family trust company formation. Our firm works extensively with highly regulated businesses, and we understand how the FID reviews and processes these applications. If you are considering forming a family trust company in the Las Vegas area or anywhere in Nevada, we invite you to contact us for a free consultation or call us at 702-330-3441.

Last updated: October 2026