The State of the States: 2022The State of the States: 2022

State legislatures have been very busy on several trust-and-estate-related fronts. Here’s an update on some key planning developments across the country, through Nov. 30, 2022.

Grantor Trust Reimbursement

Making irrevocable gifts to grantor trusts that are removed from the grantor’s estate for estate tax purposes, yet taxable to the grantor for income tax purposes, essentially allows the grantor to make a double gift. In addition to the gift of property transferred to the trust, by paying the ongoing income tax liability, the grantor relieves the trust beneficiaries from shouldering the tax burden, practically allowing the trust to grow tax free. Furthermore, the grantor reduces their taxable estate by the ongoing tax liability without imp...