It’s common for individuals in high-tax states to consider relocating for a more favorable tax climate, according to a new analysis from the Colcom Group, but fewer people know that some trusts can also benefit from a change of residence.
Relocating a trust, also known as changing its situs, can have benefits beyond tax mitigation, including gaining creditor protection, modernizing an old trust or extending trust duration.
While there can be a big incentive to move the trust, there’s also potential for a substantial legal complexity. As such, it is vital for financial advisors and their clients to consult with experts in the planning process.
See the accompanying slideshow for six questions and concepts to consider when moving trusts for tax purposes.
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