Clarity on Income Tax Reimbursement for Grantor Trusts in Nebraska
Koley Jessen prepared the draft legislative language and testified before the Banking, Commerce, and Insurance Committee of the Nebraska Legislature in favor of LB 707, which updates the Nebraska Uniform Trust Code (NUTC) to provide clarity necessary to use Tax Reimbursement Powers in Nebraska IDGTs without the risk of gross tax inclusion. The Nebraska Legislature passed LB 707 on April 12, 2022, and the Governor signed the bill into law on April 20, 2022. The effective date of the new law is July 20, 2022.
The passage of LB 707 is just one more step in modernizing the NUTC and provides advisers and trustees alike with one more tool in their toolbox to add flexibility and value to their wealth transfer planning clients.
Read more in Nate Patterson and Craig Benson’s article featured in the May/June issue of the Nebraska CPA, linked below.