SCOTUS Stance in Trust Tax Case May Complicate Estate Planning
April 17, 2019
SCOTUS Stance in Trust Tax Case May Complicate Estate Planning (Corrected)
By Carolina Vargas
April 16, 2019
Estate planning could get trickier depending on how the U.S. Supreme Court rules in a case involving taxation of trust income based on where beneficiaries live.
The high court is scheduled to hear arguments April 16 in N.C. Dep’t of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust. It will consider the link a state must have with a trust in order to tax it—the due process clause says that an entity must have at least a minimal connection with the state seeking to tax it.
There is potentially a significant amount of money at stake: The U.S. sees $120 billion in income from trusts each year.
Read the full article on Bloomberg Tax.