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Oxford Financial Group, LTD


Oxford Financial Group, LTD


Expert Perspective

News, research and market insights from our team of experts.


Current Issue | December 20, 2018

Two Distinct but Highly Impactful Planning Opportunities

By: Julia Weaver, J.D., Director, Family Office Services and The Trust Company of Oxford

In this issue of e.Insights, we address two distinct planning concerns, albeit each with significant implications for our Oxford clients.

State Income Tax Planning
In our article, "ING Trusts – Inspired Solutions to Reduce State Income Tax on Targeted Assets", we discuss strategies and trust structures designed to mitigate the state income tax impact on certain appropriate assets or on certain highly taxed transactions. While attempting to wholly avoid federal income taxation in such cases would likely yield an unpleasant reaction by the IRS, there is some ability to mitigate state income taxation. This is accomplished by shifting income from being taxed in a grantor's current state of residence to a state that does not tax trust income.

This article is designed for both clients and advisors, beginning with a high-level optic of the most appropriate client situations or transactions for this strategy, as well as the potential tax savings by utilizing these planning vehicles.

The article then provides a deeper analysis of suggested trust provisions and the IRS Revenue Rulings addressing and adding parameters for this strategy. We also address the most advantageous states as a situs for such trust structures, resulting in a new wave of estate planning acronyms such as DINGS, NINGS, WINGS and AINGS (respectively, Delaware, Nevada, Wyoming and Alaska based trust jurisdictions).

Special Needs Trust Planning
The Center for Disease Control and Prevention (CDC) cites the estimate that in the United States, about one in six, or about 15%, of children aged 3 through 17 years have a developmental disability due to some physical, learning, language or behavioral special need. Planning for such family members requires expertise and a deep understanding of the essential and unique planning needs for these children.

In her article, "Essential Planning to Protect Loved Ones with Special Needs", Kate Borkowski, Manager and Sr. Fiduciary Officer of The Trust Company of Oxford, discusses a critical element of planning for families with special needs children and grandchildren, the Special Needs Trust. In her article, Kate illuminates the need for such planning in order to preserve critical governmental benefits for persons with special needs. Kate also provides insight on appropriate trust structures for the protection of special needs family members, as well as the preservation of assets and legacy for the ongoing support of other family members.

Your Oxford team of advisors is available to discuss these strategies and the appropriate planning for your unique situation.