Prior to January 1, 2023, California residents were able to avoid California taxation for any income earned by an incomplete non-grantor (ING) trust that was not distributed to them. An ING trust is an incomplete gift that never leaves the settlor’s estate, which means there is no gift tax, and it has a non-grantor status, meaning the income is taxed at the trust level.
However, recent legislation enacted in California codified California state income tax treatment of INGs, requiring the income of an ING trust to be reported in a qualified taxpayer’s gross income. Therefore, if you have a non-grantor trust as defined by the Internal Revenue Code, California will treat it as a grantor trust for state income tax purposes, effective retroactive to January 1, 2023. This “death of INGs” in California has caused residents to lose hope in finding victory in the tax space, but as explained in our latest podcast episode, “all is not lost” for California’s residents.
In light of this legislation and the need to understand how to interpret it, along with gaining insights into how clients with existing INGs in California can move forward and retool their trust, Bridgeford and Wilson Elser are pleased to go beyond our podcast episode and host two presentations for our friends and colleagues in California.
David Warren, Bridgeford’s Co-Founder and Chairman, and William Lipkind, Attorney, Partner, and Chair of Wilson Elser’s Tax Planning & Controversies Practice, will be travelling to both Orange County and Los Angeles in December to discuss this move by California to abolish ING trusts and help advisors and their clients understand that there is still hope for California residents to find victory in the tax space, as there are powerful tax planning tools and strategies available in top-tier jurisdictions, such as South Dakota, with or without the use of ING.
Presentation Dates & Locations
This presentation will take place on the following dates and locations. We invite guests to arrive at 4:30pm. The presentation will take place from 5:00pm-6:30pm, and a reception will follow until 7:30pm.
Monday, December 4 – Orange County
Rusty Pelican at 2735 West Coast Highway, Newport Beach, CA 92663
REGISTER HERE
Tuesday, December 5 – Los Angeles
Craft LA at 10100 Constellation Boulevard, Los Angeles, CA 90067
REGISTER HERE
You can register for these free presentations, that also offer CE credit, by clicking the corresponding “REGISTER HERE” links above. Limited space is available, so register early!
If you have any questions, please reach out to Melissa Roberson, Global Marketing & Digital Media Director, at mroberson@bridgefordtrust.com. We look forward to seeing you there!
