Presented at the ACTEC 2021 Virtual Annual Meeting, this article discusses the importance of planning for state income taxation of trusts.Practitioners must factor the state income tax treatment of the trusts they create for their clients into their estate planning recommendations.They must take steps to assure that the income of these trusts is not taxed by any state, or by no more than one state in any event.
This article reprint was published in the November 2020 issue of the BNA Tax Management Estates, Gifts and Trusts Journal and provides an overview of the Cameron Trust Case, which clarifies the creditor protection that is available through third-party and self-settled trusts.Please see important disclosures at the end of the article.
November 3, 2020, GEM 25 — A common mistake some people make is once they create a trust, they forget about it. They don’t see that ongoing evaluation of the trust and its tax basis can potentially yield income tax benefits down the road. Director of Income Tax Planning Tom Kelley discusses how you can potentially reduce your income tax liability by proactively managing the assets in your family’s trusts.