What Is a NING?
A Non-Grantor Irrevocable Trust (NING) is a sophisticated estate-planning tool designed for high-net-worth individuals looking to manage income and estate taxes, protect assets, and plan for long-term wealth transfer. By establishing a NING in a state like Nevada, which has favorable trust laws and no state income tax, the trust itself becomes a separate taxpayer. This allows income generated by the trust’s assets to be taxed at the trust level rather than the settlor’s personal tax rate, potentially reducing state income tax exposure.
NINGs also allow for incomplete gift transfers, giving the grantor flexibility in planning transfers to beneficiaries. While charitable giving can be incorporated, it requires careful planning to ensure the trust achieves the intended goals. When structured thoughtfully and administered properly, a NING can provide families with greater control, clarity, and long-term planning opportunities for their wealth.
Key Considerations When Using a NING
NINGs offer powerful benefits, but they come with important factors to consider. Because the trust is irrevocable, the grantor cannot reclaim assets or make significant changes once it is funded. Proper administration and compliance are critical to maintain non-grantor status and the associated tax benefits. Careful attention must be paid to asset selection, state-specific trust laws, and beneficiary designations, as these factors can impact both tax efficiency and the overall success of the trust. Working with experienced legal, tax, and trust professionals is essential to ensure the trust meets its intended goals and aligns with your broader estate plan.
Why Choose Nevada Trust Company® as Your Trust Services Provider?
At Nevada Trust Company®, our team brings extensive experience in managing complex trusts, including NINGs. We stay up to date on tax laws, trust regulations, and planning strategies to provide clients with informed, thoughtful guidance every step of the way.
For more information about NING services or other trust-related questions, please complete our contact form and a member of our team will be in touch shortly.
