The highest court of the country has granted certiorari to a tax case that has serious implications for states and trusts beneficiaries. The issue within North Carolina Department of Revenue v. the Kimberley Rice Kaestner 1992 Family Trust is: Does the due process clause prohibit states from taxing trusts based on trust beneficiaries’ in-state residency?
The ongoing controversy can be seen as premier matter concerning estate planning. Steve Akers, an estate lawyer with Bessemer Trust, posed the question a different way at the Heckerling conference: “Can a state tax a trust located in another state? What are minimum contacts?” The split among the states is close: five states say no, four states say yes.
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This post, SCOTUS to Hear Key Income Tax Issue for $120 Billion Trust Industry, by Gerry W. Beyer, Wills, Trusts & Estates Prof Blog first appeared on at http://www.adrtoolbox.com/.