Most tax strategies center on minimizing federal income taxes, since they account for the lion’s share of taxes a person might owe. But in some states, income-tax rates are themselves in the double digits and can add mightily to tax bills.
Over the last decade or so, one strategy has been gaining in popularity among wealthy individuals and families and their tax advisors. They use trusts to limit their exposure to state income-tax rates. ING trusts, which stands for incomplete gift non-grantor trusts, can shift the tax exposure out of a high-tax state, such as California, to a state with no state income tax, such as Delaware, Nevada and Wyoming
How the wealthy use ING trusts to slash the state income-tax rate they pay