Why Would You Need an Incomplete Gift Non-Grantor Trust?
While the gift is incomplete for tax purposes, the trust is separate from the grantor (non-grantor trusts as incomplete gift trusts with a testamentary power of appointment and a non-fiduciary inter vivos power of appointment for health, education, support, and maintenance).
This type of trust is helpful if you want to transfer property to a trust but do not use gift tax. It could be used for asset protection, savings on income tax, and avoiding legal restrictions (for example, who can hold a license).
This type of Trust is also known as NING, CING, or DING.
NING, CING, and DING are all acronyms for different types of Incomplete Gift Non-Grantor (ING) trusts.
- NING stands for Nevada Incomplete Gift Non-Grantor Trust, which is a type of ING trust created under Nevada law. It is often used for asset protection and state income tax savings.
- CING stands for Delaware Directed Incomplete Gift Non-Grantor Trust, which is a type of ING trust created under Delaware law. It allows for the grantor to retain a degree of control over the trust while still receiving certain tax benefits.
- DING stands for Delaware Incomplete Gift Non-Grantor Trust, which is similar to a CING but does not allow the grantor to retain any control over the trust.
Is It Irrevocable or Revocable?
The Incomplete Gift Non-grantor Trust is irrevocable, meaning once it is created, it cannot be changed.
Is a Separate Tax Identification Required?
The Incomplete Gift Non-grantor Trust does require a separate Tax Identification Number.
Is a Gift Tax Return Required?
No. This is an incomplete gift.
Is This Subject to Estate Tax Upon My Death?
Yes. There is a retained testamentary power of appointment, and this is an incomplete gift, so it is included in your taxable estate.
Is There Creditor Protection?
There is creditor protection for assets held in an Incomplete Gift Non-grantor Trust in an ING Trust.
Contact us today to schedule a consultation and learn more about how we can help you with your estate planning needs.
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