Читать книгу 2012 Estate Planning - Martin Inc. Shenkman - Страница 18

If you gift assets to a grantor trust today, there will be no current state income tax savings since the trust income and gains will be taxed to you, as grantor. However, following your death, the grantor trust status of the trust ends. At that point, the trust will become a separate taxpayer and, with proper planning, heirs residing in high income tax states may be able to minimize or even avoid state income tax on trust income by accumulating the income in the trust. For instance, if the trust is established in one of the trust-friendly states discussed throughout this book (e.g., Alaska, Delaware, Nevada, and South Dakota), there likely will be no state income tax on earnings retained in the trust for out-of-state beneficiaries. This can provide a significant benefit. In-state trust beneficiaries are taxed in Delaware, so caution must be exercised in making any assumptions about tax treatment from state to state.

EXAMPLE: Wealthy Taxpayer establishes a grantor “dynasty” trust in Alaska to which he gifts $5.12 million of marketable securities. During Taxpayer’s lifetime, there is no incremental state income tax savings because the trust earnings will be taxed by Taxpayer’s state of residence. On Taxpayer’s death, grantor trust status terminates. Taxpayer’s only heir is his daughter, age 50 at Taxpayer’s death. Daughter is gainfully employed and has no current need for distributions from the trust so she does not request the trustee to make any discretionary distributions. Daughter retires at age 60 and moves to a state that has no state income tax. At that point, she occasionally requests distributions from the trustee. State income tax will have been avoided for the entire 10-year period following her father’s death.