In July, California Governor Newsome signed legislation that disallows the incomplete gift non-grantor trusts (INGs) as a way to avoid CA state tax income. The law is retroactive to January 1, 2023. In this episode of the PFP Section podcast, Bob Keebler, CPA/PFS, interviews CA attorney, Kirsten Wolff, to guide CPAs on how to proactively plan with this new legislation. Bob poses the following questions to Kirsten:

Do all ING trusts now trigger CA tax?
Say more about the exception for charitable trusts.
What types of trusts are not impacted by the new legislation?
How do the throwback rules apply?
How should CPAs plan for their CA clients who had ING trusts that received income or incurred capital gain before the law took effect?
What should be done with ING trusts as a result of the new rules?

For more resources related to this episode:

Tune in to Steve Oshins and Bob Keebler as they dive deeper into the CA ING trust issue.
Find Bob’s decisions charts in our Proactive Planning Toolkit.
Find Steve Oshins decision charts.

This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy, and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program.

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What you need to know about CA ING trusts {PFP Section}

AICPA Personal Financial Planning (PFP)