February 9, 2021, GEM 32 — Many people are familiar with personal trusts because they are common estate planning vehicles. However, a lesser known fact is personal trusts may also be used to minimize state income tax liabilities. By holding your wealth inside a trust, you may limit the ability of your home state to tax the trust’s income. In today’s podcast, National Director of Delaware Trust Planning, Jeff Wolken, discusses the steps you can take to mitigate state income tax.
This article reprint was published in the Fall issue of Delaware Banker magazine and provides a discussion on why New Jersey residents are particularly well-positioned to save New Jersey income tax through the use of Delaware trusts.Please see important disclosures at the end of the article.
July 14—With today’s historically high gift and estate tax exemptions, and historically low interest rates, the use of personal trusts can be particularly beneficial in this favorable wealth planning environment.