Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Wednesday, August 18, 2021


David A. Diamond, President of The Northern Trust Company of Delaware and Adviser to The Northern Trust Company of Nevada has provided wealth management tips regarding Nevada Trusts in a paper titled, Nevada Trusts: Safeguarding Personal Wealth (2021). Provided below is an Introduction to the Paper: Estate planning

Many families and their advisers have found the State of Nevada to be a trust- friendly jurisdiction that promotes modern laws and enjoys attractive income tax advantages. This paper highlights the most significant legal and tax benefits for Nevada residents and nonresidents alike, and their professional advisers, who may be considering whether to establish a trust in Nevada.

The Northern Trust Institute brings the breadth and depth of the firm to address the increasingly complex and sophisticated wealth management needs of our clients and their advisers. Informed by the latest insights and continually vetted through feedback, our advice is grounded in real-world outcomes and backed by proven credibility.

We believe you will find this information helpful as you work to create meaningful legacies.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.


Estate Administration, Estate Planning - Generally, Trusts | Permalink


At page 14 of the Diamond memo appears the following:

Prior to incomplete nongrantor trusts being placed on the
no ruling list, over the past several years, private letter rulings
from the Internal Revenue Service (the “IRS”) have confirmed
that a client may rely on the law of any state that permits the
creation of self-settled asset protection trusts to create a trust
that “traps” income within the trust and does not pass such
income through to the trust’s grantor for income tax purposes.
Such non-grantor trusts may be funded with contributions that
are not taxable gifts for federal gift tax purposes.

This overstates the nominally "positive" nature of the agency's determination in these rulings. Each and every of the ING rulings -- well over a hundred -- expressly reserved the question whether the settlor's reserved powers might trigger "grantor" trust status under section 675.

Posted by: Russ Willis | Aug 18, 2021 8:03:35 PM

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