State Tax on Trust Income

The U.S. Supreme Court recently handed down an important decision declaring North Carolina’s taxation of certain trusts unconstitutional. The name of the case is: NC Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust. If you are a beneficiary of an out-of-state trust that was subject to taxation merely because a portion of the trust income was “for the benefit of” a North Carolina resident, then this decision likely impacts you, or at least the trust of which you are a beneficiary. In essence, the U.S. Supreme Court said that merely having a beneficiary in this state does not […]