Too Thin A Reed: A Trust Cannot Be Taxed Based Solely on the Settlor’s Domicile.


This post covers a recent Pennsylvania decision holding that an income tax assessment against a trust could not be sustained under the commerce clause. The only contacts with Pennsylvania were the domicile of the resident beneficiaries and the domicile of the settlor when he established the trust.

The court concluded that the domicile of the beneficiaries was not relevant, and it concluded that the mere fact that the settlor lived in Pennsylvania when he set up the trusts was not enough to sustain the tax assessment.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© James R. Malone, Jr., MALONE LLC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »