Can a Trust Help You Save on State Income Taxes?
Of course, when it comes to lowering taxes almost all taxpayers first and foremost focus on taxes at the federal level. There are of course many ways to save on federal income taxes and the majority of taxes we all pay go to the federal government. So it makes sense that most taxpayers put the lion’s share of their tax-saving efforts towards their federal tax bill. However, depending on which state you live in you could save a nice chunk on your state income tax as well.
There is a certain tax-saving strategy that has been growing in popularity the past few years among the wealthy. They are using trusts to help reduce their exposure to state income tax rates. Incomplete gift non-grantor trusts (ING trusts) can help transfer the tax exposure of those who live in high-tax states like California to a state with no income tax like Texas, Florida or Nevada.
Many of the nation’s wealthy families and individuals who have been using this ING trust strategy, which has grown in popularity over the last 10 years, are reaping the rewards. That’s because ING trusts can help the wealthy lower the state income tax at the trust level. This is especially true if they are nearing a substantial gain.
However, it’s important for anyone setting up an ING trust to do it before there is any intent, or letter or sales discussion that would lead to a given gain. You don’t want it to look like you are setting up the trust simply to avoid taxes. For more information on ING trusts contact GROCO.
http://www.cnbc.com/2016/08/02/how-the-wealthy-use-ing-trusts-to-slash-the-state-income-tax-rate-they-pay.html
Entrepreneurship and Economic Empowerment: The Path to Sustainable Growth
Entrepreneurship has long been recognized as a powerful driver of economic growth and social transformation. Across the globe, individuals with innovative ideas and the determination to bring them to life have created businesses that fuel economies, generate employment, and uplift communities. Nowhere is this potential more evident than in Africa, where a young, vibrant population…
Bob Gay on The Pillars of Self-Reliance
The Pillars of Self-Reliance At the recent Legacy Builders Conference, Robert Gay captivated the audience with a profound message: true impact comes not from handouts, but from empowering individuals to achieve self-reliance. A distinguished investor, philanthropist, and humanitarian, Gay has spent decades applying the principles of entrepreneurship and accountability to lift millions out of poverty.…
The Future of Sustainable Philanthropy
At the Legacy Builders 2025 Conference, three leading voices in philanthropy-Mark Lutz, Pamela Hawley, and Zoe Ryan-came together to share their insights on how to create lasting, community-driven impact in global development. While their experiences and approaches varied, a common theme emerged: true sustainability in philanthropy begins with listening to, investing in, and empowering local leadership. Mark Lutz: Building…
From the Wrestling Mat to Data Innovation: How Dr. Naveen Singh is Reshaping Tech
In the world of high-stakes tech entrepreneurship, background stories don’t get much more unique than that of Dr. Naveen Singh. A former Olympic-style wrestler turned telecom executive, turned Distributed Ledger Technology pioneer, Dr. Singh has woven seemingly disparate fields—sports, healthcare, and cutting-edge tech—into a singular mission. Now at the helm of Inery, a decentralized database management system…