This column discusses how clients can use a Nevada Incomplete Non-Grantor (NING) Trust to avoid having to pay state income taxes. A NING is a powerful tax planning tool that has actually been approved in a series of recent IRS private-letter rulings. Not everyone can benefit from a NING, and it is important to use extreme care and caution when structuring such a financial device. The Trustee of a NING Trust must be a Nevada resident, or they must live in a state that has a similar asset protection trust statute to the one in Nevada. There are other limitations to these types of trusts discussed in this column. Clients should consult with a professional estate planner to weigh the pros and cons of getting a NING trust.
See Neil E. Schoenblum, Eliminating Income Tax and Protecting Assets With a NING Trust, Accredited Investor Markets, October 8, 2015.
