Recent Resident Trust Rulings: Can Your Clients' Trusts Avoid State Income Tax?
Reprinted with permission from Probate & Property, January/February 2019
Income tax planning has become more important than ever because of increased estate tax exemption amounts and generally higher state and federal income tax rates. One tax imposed by a number of states is on the income of trusts known as "resident trusts."
Generally, these long-arm statutes impose a tax on a trust's income solely because of the state of residence of the grantor or a beneficiary of the trust, regardless of any other nexus of the trust to that state. Read More.
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