Can a Trust Help You Save on State Income Taxes?

senior couple with financial advisor

 

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

Posted in
Justin Donald

Justin Donald – The Lifestyle Investor

Transcript of Justin Donald interview by Alan Olsen, Host of the American Dreams Show, “The Lifestyle Investor”: Alan: Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Justin Donald, welcome to today’s show.   Justin Donald: Thanks, Alan Great, to be here excited to hang with you and talk with…

Tips to Improve Your Leadership Communication

Tips to Improve Your Leadership Communication

Here are some tips to improve your leadership communication.  One of the most important attributes any leader can possess is the ability to communicate well with others. Good leaders understand this attribute is one they need to consistently work on to continually improve. Good communication is vital for any type of leader, as he or…

Are Risk Takers Good Leaders?

Are Risk Takers Good Leaders?

ARE RISK TAKERS GOOD LEADERS? Are risk takers good leaders? Risk plays a factor in our daily choices, and perhaps more so in the professional aspect of our lives. Some decisions we make are chancier than others, and there are countless examples of leaders in the business world who have taken great risks in order to become highly…

Six Habits of Professional Leaders

Six Habits of Professional Leaders

This article will discuss six habits of Professional Leaders.  Leadership in the workplace comes in many different styles and forms. Not all people in positions of leadership have the necessary skills to excel at their position. To be successful in business leadership, developing and honing numerous talents, abilities, and attributes is necessary. Some professional leaders are…