Shopping for tax savings – Relocating a trust to a tax-friendly state

Description

Abstract: If a trust is subject to high state income taxes, it may be possible to change its residence — or “situs” — to a state with low or no income taxes. But not all trusts are the same — nor are state laws. This article explains which types of trusts may be good candidates for relocation, along with the factors that states use in determining a trust’s state of “residence” for tax purposes. It also discusses the steps involved in moving a trust.