This article reprint was published in Volume 40 of the Tax Management Estates, Gifts and Trusts Journal and provides an overview of the federal tax laws known as the Delaware Tax Trap, including:

  • A review of the Trap’s history.
  • How to spring and not to spring the Trap, and  when to spring and not to spring the Trap.
  • A summary of how the Trap works under current Delaware law and how it works under the laws of some other states.

This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or services. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought. 

Download Article Contact an Expert