Friday, February 28, 2014
Most states impose a tax on trust income between 3% and 12%. These seven states do not:
- South Dakota
To avoid taxes on accumulated ordinary income and capital gains, locate a trust in one of these states. In some states, this is as simple as naming a trustee in one of these seven states. In other states, this may be impossible.
See Jim Combs, The Best States for Client Trusts, Wealth Management, Feb. 24, 2014.