ESTATE PLANNING COUNCIL OF THE LEHIGH VALLEY

This presentation will provide a comprehensive overview of the state taxation of trust income, beginning with an examination of how and when states impose tax and the constitutional considerations that determine whether such taxation is valid. 

Attendees will gain practical insight into how key jurisdictions—including Pennsylvania, New Jersey, Delaware, New York, and California—approach trust income taxation, highlighting important distinctions that impact planning strategies. The session will then explore critical planning considerations for both newly established and existing trusts, along with additional issues that may arise in administration and the available forums for resolving tax controversies. Building on this foundation, the program will demonstrate why advanced planning techniques such as IDGTs and SLATs can significantly enhance estate tax efficiency, supported by a comparative analysis of exemptions, valuation discounts, asset allocation, leverage, and GST strategies. 

The presentation will conclude with practical drafting considerations, including the advantages of Delaware SLATs, and best practices for ongoing trust management through coordinated collaboration among legal, tax, and financial professionals.