Most income tax planning is focused on shrinking federal tax liabilities. With state income tax rates as high as 13.3%, strategies that reduce those liabilities are increasingly popular, as well.

A newly-popular strategy is the so-called NING trust, a Nevada Incomplete Gift Non-Grantor trust. It’s an extension of the DING trust, a Delaware Incomplete Non-Grantor trust. In the case of the former, portfolio assets that may generate significant income are stowed in a Nevada trust, shifting the tax exposure to that state’s 0% state tax rates, rather than the rate imposed in the settlor’s home state.

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