State Income Tax Planning with ING Trusts

Residents in 43 states pay state income tax, with the highest rate being 13.3%. When combined with the top federal marginal tax rate and the net investment income tax, residents subject to the highest state income tax rate could face a total levy of 54.1% of income. As a result, those residents are interested in finding ways to mitigate the tax. An incomplete gift non-grantor trust (ING trust) could be the answer.