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Structuring Incomplete Gift Non-Grantor Trusts: Key Provisions, Tax Planning, Trust Situs, Distributions, and More

Recording of a 90-minute CLE/CPE video webinar with Q&A

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Conducted on Tuesday, August 15, 2023

Recorded event now available

or call 1-800-926-7926

This CLE/CPE course will guide estate planning professionals on using Incomplete Gift Non-Grantor Trusts (ING(s)) to reduce or avoid state income taxes. The tax savings can extend to federal income tax and estate tax savings as well. In a lively discussion, The panel will address applicable federal tax rules and challenges, key provisions and planning strategies when structuring these trusts, minimizing state taxes, navigating the differences between jurisdictions that allow for incomplete gift non-grantor trusts, and asset protection attributes.

Description

There are many benefits of incomplete gift trusts. INGs can ensure the transfer of an asset to the desired beneficiary while retaining a basis step-up for assets at death. INGs can provide liability protection for a donor while allowing the donor to regain control of the asset, including distributions and investment control if needed. Additionally, INGs can help avoid state and federal income taxes.

An ING is a non-grantor trust. The trust pays the income tax as a non-grantor trust, subject to the laws of the jurisdiction of the trust and where its fiduciaries live. Any distributions made by the incomplete gift trust to beneficiaries are considered complete gifts.

An ING can be part of a business sale for business owners seeking to implement a pre-sale planning strategy. These trusts reduce or eliminate potential state income taxes and capital gains taxes upon the sale of a business, can assist in eliminating federal taxes, and allocating the tax across perhaps multiple assets while also providing asset protection. Considerations of the contributed assets and their income tax status make a difference.

Listen as our expert panel explains the benefits provided by INGs for business owners contemplating a sale in the areas of estate planning, state taxation, federal taxation, and asset protection.

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Outline

  1. Incomplete gift trusts: an overview
  2. Grantor and non-grantor trusts
  3. Complete and incomplete gifts
  4. State and federal tax considerations
  5. Asset protection considerations
  6. Specific trust income tax opportunities
  7. Scenarios and best practices for estate planners

Benefits

The panel will review these and other key issues:

  • How is a grantor versus a non-grantor trust taxed?
  • What makes a gift complete?
  • How ING trusts preserve basis step-up?
  • What can INGs can accomplish with qualified small business stock?
  • When would a client benefit from an ING?

Faculty

Lobb, Mark
Mark Lobb
Partner
Lobb & Plewe

Mr. Lobb is the head of the Private Clients Group at Lobb & Plewe, which provides legal services for high-net-worth...  |  Read More

Siegle, Christopher P
Christopher P. Siegle
Wealth Advisor
J.P. Morgan Private Bank

Mr. Siegle, Managing Director, joined JPMorgan in 2010 after practicing trust and estates law in Arizona for over 13...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

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