SOP2102. Where, Oh Where Is My Trust Taxed?

States use a myriad of criteria to determine whether a trust should be taxed as a resident trust for income tax purposes, and these criteria vary significantly from state to state.  This session will discuss the ways in which a trust can become subject to a state's income tax.  This session will also discuss the unforeseen tax issues when a trust has ties to several states, along with planning opportunities and practical considerations.

Learning Objectives:

• Define 6 basic ways in which a trust can become subject to a state's income tax.
• Summarize relevant case law, including the reliance, or lack thereof, on the Commerce Clause and Due Process Clause.
• Utilization of credits when trust is taxed in several states.
• Planning opportunities and practical considerations when trust is taxed in several states.