Ning Trust Strategy
An increasing number of residents in high-income tax states like California reach out to Bridge Law LLP in order to take advantage of their expertise in the creation of NING trusts to reduce the exposure to state income taxes.
A Nevada Incomplete Gift Non-Grantor trust (NING) is an irrevocable trust built in Nevada, and is popular among those individuals living in high-income tax states seeking to reduce their state income tax liability, or those facing a large capital gain on the sale of an asset. The NING is a trust designed to grow wealth and protect assets utilizing Nevada’s laws.
The basic principles of the NING are simple. First, the grantor of the trust transfers the asset or brokerage account with the income tax liability into the NING. After the transfer into the NING, the grantor is no longer responsible for the income tax liability because a NING is a trust that is its own income tax payer, and if the trust is set up in Nevada where there is not a state income tax, the income earned on the assets in the NING avoids the grantor’s home-state income tax.
To read more information about the NING Trust strategy and whether it is right for you, please read Lalit Kundani’s article on the topic here