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What’s a Personal Tax Inversion?

There has been a lot of press recently about corporate tax inversions where U.S. companies relocate to other countries to save taxes, but there is a technique I like to think of as a personal tax inversion that helps individuals decrease their tax bill rather than corporations. I wrote about this strategy for Forbes: Avoid State Income Tax With a Personal Tax Inversion.

The technique, which works best if you live in a state with a high income tax – requires the use of an Incomplete Non-Grantor Trust. The Incomplete Non-Grantor Trust allows you to shift assets to another state with a lower or no state income tax such as Nevada or Delaware. These structures are also referred to as NINGs or DINGs to reflect the state (Nevada and Delaware, respectively) in which the trust is located.

You can read more about DINGs, NINGs, and personal tax inversions here: Avoid State Income Tax With a Personal Tax Inversion

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About the Independent Financial Advisor

Robert Pagliarini, PhD, CFP®, EA has helped clients across the United States manage, grow, and preserve their wealth for the past 25 years. His goal is to provide comprehensive financial, investment, and tax advice in a way that was honest and ethical. In addition, he is a CFP® Board Ambassador, one of only 50 in the country, and a real fiduciary. In his spare time, he writes personal finance books, finance articles for Forbes and develops email and video financial courses to help educate others. With decades of experience as a financial advisor, the media often calls on him for his expertise. Contact Robert today to learn more about his financial planning services.

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