Shenkman Law

Client PortalClient Login
  • Services
  • The Firm
  • Blog
  • Newsletter
  • Press & Awards
  • Resources
  • Webinars
  • Podcasts
  • Contact
« Back

    The Benefits of Incomplete Non-Grantor Trusts

    WealthManagement.com
    Dec 03, 2018

    William D. Lipkind, Martin M. Shenkman, Jonathan G. Blattmachr 

    An incomplete non-grantor trust is a powerful planning tool; not just for the super
    wealthy, but for many people who are looking to save state and/or federal income
    tax.

    Most people associate estate planning—and trusts in particular—with estate
    planning, which an ING trust can do. For example, an ING trust is invariably formed
    in a state that permits self-settled trusts so that ING trust assets should not be
    reachable by the settlor’s creditors. Also, an ING arguably isn’t a self-settled trust
    because the trustee has no right to distribute trust assets to the settlor. Rather in the
    traditional ING trust, the distribution committee has a special power of appointment
    to direct distributions to the settlor or others specified in the document. According
    to these interpretations, an ING trust might be safer from claimants than a more
    typical self-settled domestic asset protection trust. While the traditional ING trust
    provides no estate tax benefit, a newer variant, a so-called completed gift ING, may
    be used to safeguard the current high estate tax exemption before it declines. So,
    INGs can provide both asset protection and estate tax benefits.

    But the most valuable application might now be how to use an ING trust to save
    income tax. This bears significant importance after the Tax Cuts and Jobs Act
    because of the myriad of different changes that the Act made. There are some
    potentially great valuable income tax savings that an ING trust can provide and
    several techniques you can use to tailor the ING as a beneficial planning tool for your
    clients.

    Read their commentary here.

    No related posts.

© 2023 Shenkman Law
  • Services
  • The Firm
  • Blog
  • Press & Awards
  • Resources
  • Contact
  • Privacy Policy
  • Site Map
  • Code of Ethics
  • ADV 2A Firm Brochure
  • Chronic Illness
  • LawEasy