“With income tax rates now exceeding transfer tax rates, trustees are becoming more proactive in understanding the state income tax exposure of non-grantor trusts.  Trustees have a fiduciary duty to consider the potential tax consequences of their trust administrative and distributions decisions, and moving the administration of the trust to a state with different tax rates or rules, changing trustees, decanting, or dividing a large trust into separate trusts can be useful tools when making these decisions.”

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