In 2013, the IRS official sanctioned the use of the Delaware Incomplete Non-Grantor Trust. This provides for lowering the state income tax burden, avoiding the federal gift tax, and providing for asset protection. Often referred to as a DING, this is of most use to high net-worth individuals who have appreciating assets located in high-tax states.

The trust consists of a grantor and a Distribution Committee made up of the Grantor and their issue. The trustee then distributes the funds under the direction of the committee. There are three types of decisions that can trigger a funds transfer:

• Grantor consent power: A majority of the commitment directions distribution of income (or this can be done by a principal with the grantor’s signature.
• Unanimous member power: All members other than the grantor can agree to the transfer
• Grantor sole power: the grantor distributes principal to his issues for purposes of use like health, maintenance, or education. 

The IRS has ruled that a DING is not classified as a grantor trust and that transfers should not be treated as gifts. This can help avoid taxes in some cases of up to 40 percent depending on the value given.