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Income Taxes › Trust Distributions

Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect... more +
Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect income taxes based on a progressive scheme, while others may utilize a proportional or regressive framework. less -
Goodwin

Revised Tax Legislation Proposal No Longer Includes Certain Estate and Gift Tax Provisions

Goodwin on

Certain revenue-raising proposals that would have affected the transfer tax regime and estate planning of high-net-worth individuals and trusts, which were included in the prior proposed bill in the House of Representatives,...more

Bilzin Sumberg

What Makes a Trust a "Foreign" Trust?

Bilzin Sumberg on

In a previous post, we discussed the tax implications for U.S. beneficiaries who receive a distribution from a foreign trust. That discussion assumed that the trust in question was, in fact, a foreign trust for U.S. federal...more

Perkins Coie

U.S. Supreme Court finds in Favor of Taxpayer Trust Beneficiary in Kaestner

Perkins Coie on

On June 21, 2019, the U.S. Supreme Court issued its opinion in North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust. This unanimous decision stated that the State of North Carolina may not tax...more

Mitchell, Williams, Selig, Gates & Woodyard,...

U.S. Supreme Court Limits the Ability of States to Tax a Trust – The Kaestner Case

Mitchell, Williams, Selig, Gates & Woodyard,... on

On June 21, 2019, the U.S. Supreme Court issued an opinion limiting the ability of a state to impose income taxes on a trust when the trust’s connection with the taxing state is minimal. The case is styled North Carolina...more

Roetzel & Andress

Trusts, Beneficiaries, And The Application Of State Income Tax

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In North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, Case No. 18-457, 588 U.S. __ (2019), the Supreme Court revived the two-prong test from Quill v. North Dakota, 504 U.S. 298 (1992) and held...more

Jones Day

United States Supreme Court Rules State Cannot Tax Trust’s Income

Jones Day on

Kaestner ruled that a state's taxation of a trust's income, where the only connection to the state was an in-state beneficiary, violates the Due Process Clause. On June 21, 2019, the United States Supreme Court unanimously...more

Proskauer Rose LLP

Wealth Management Update - July 2019

Proskauer Rose LLP on

Supreme Court Ruling in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, 588 U.S. [TBD] and its Relevance to Income Taxation of Accumulated Income in California Trusts - The Supreme Court...more

Proskauer - Tax Talks

State Tax on Trust Income Based Solely on In-State Residence of Beneficiaries Found Unconstitutional

Proskauer - Tax Talks on

On June 21, 2019, the United States Supreme Court decided North Carolina Dept. of Revenue v. Kimberly Rice Kaestner 1992 Family Trust (hereinafter, “Kaestner”). In a unanimous opinion delivered by Justice Sotomayor, the Court...more

Davis Wright Tremaine LLP

Remember State Income Taxes When Creating a Trust to Own Family Business Interests

Davis Wright Tremaine LLP on

Oftentimes, a family business will be owned in part or entirely by one or more irrevocable trusts. Whether those trusts are subject to state income tax depends on the location of any one or more of: (1) the...more

McDermott Will & Emery

Trust Wins Due Process Challenge to North Carolina State Income Tax

McDermott Will & Emery on

Last week, the US Supreme Court ruled that North Carolina may not tax a trust’s income when the trust’s only contact with the state is the in-state residence of discretionary beneficiaries. The Due Process Clause requires a...more

Smith Debnam Narron Drake Saintsing & Myers,...

Supreme Court Issues Ruling in Tax Case

Smith Debnam Narron Drake Saintsing & Myers,... on

There’s big news in the tax and trusts and estates world. The U.S. Supreme Court released its opinion in the North Carolina Dept. of Revenue v. Kimberley Rice Kaestner 1992 Family Trust case...more

Troutman Pepper

Supreme Court Sets Limits on State Income Taxation of Trusts

Troutman Pepper on

On June 21, the U.S. Supreme Court issued a unanimous decision in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust (Kaestner), holding that a trust is not subject to fiduciary income tax in a...more

Neal, Gerber & Eisenberg LLP

Client Alert: U.S. Supreme Court Rejects State Attempt to Tax Undistributed Income of a Trust Based Solely on Trust Beneficiaries...

Neal, Gerber & Eisenberg LLP on

On June 21, 2019, the United States Supreme Court unanimously held, in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, that the North Carolina Department of Revenue could not...more

Akerman LLP - SALT Insights

Nothing To See Here? – Kaestner Trust Decision Leaves Many Unanswered Questions

Akerman LLP - SALT Insights on

The U.S. Supreme Court recently issued its decision in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Trust. The Court unanimously determined that the residency of in-state beneficiaries alone is an...more

Kilpatrick

Kaestner Trust Three Key Takeaways

Kilpatrick on

On June 21, 2019 the United States Supreme Court issued its opinion for North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust. Not surprisingly, based on how oral argument went, the Court ruled that...more

Williams Mullen

SCOTUS Finds that Application of North Carolina’s Trust Income Tax Is Unconstitutional

Williams Mullen on

On Friday, June 21, 2019, the Supreme Court of the United States ruled in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust that a state cannot tax a trust based only on a trust beneficiary’s...more

Cole Schotz

Supreme Court Unanimously Rules That States Cannot Tax Trusts Based Solely On Location Of Beneficiaries

Cole Schotz on

In a closely-watched decision, the U.S. Supreme Court unanimously ruled that a beneficiary’s residence within a state alone does not subject a trust to such state’s income tax. In North Carolina Dept. of Revenue v. Kimberley...more

McGuireWoods LLP

What Kaestner Decision Means for State Income Taxation of Trusts

McGuireWoods LLP on

On June 21, 2019, the U.S. Supreme Court issued a unanimous opinion, delivered by Justice Sotomayor, in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, holding that the North Carolina...more

Alston & Bird

U.S. Supreme Court Carves a Narrow Taxpayer Win on Due Process in Kaestner

Alston & Bird on

One year after dropping the landmark Wayfair decision, the Supreme Court returned to the world of state taxes in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust. Our State & Local Tax Group...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Decides North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust

Faegre Drinker Biddle & Reath LLP on

On June 21, 2019, the U.S. Supreme Court decided North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, holding that The Due Process Clause does not allow a state to tax a trust’s income where the...more

Eversheds Sutherland (US) LLP

US Supreme Court hears trust nexus oral arguments

Eversheds Sutherland (US) LLP on

On April 16, 2019, the US Supreme Court heard oral arguments for North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, which asks whether the Due Process Clause prohibits states from taxing trusts...more

White and Williams LLP

Personal Representatives and Fiduciaries: Executors, Administrators and Trustees and Their Duties

White and Williams LLP on

The death of a loved one or close friend is a traumatic experience. In addition to the emotional anguish, those who are charged with dealing with the decedent’s personal and financial affairs following death are often left...more

Holland & Hart LLP

Prudently Investing: What Trustees Need to Know

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Acting in the best interests of the trust and the trust beneficiaries, a trustee has the duty to protect and preserve trust assets and, generally, to make the assets productive. In making investment decisions and managing...more

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