Trust Situs and State Taxation: Practical Planning Implications

State tax departments are becoming more aggressive at collecting revenues and the trend is likely to continue in light of state fiscal issues.

The situs of a trust may impact the rules that govern the trust, the validity of certain provisions, the powers of the trustees, and the degree of asset protection. Moreover, the situs of a trust may impact the state taxation of the trust. The rules under which a state can tax a trust are complex and vary from state to state. It is critical to understand these rules when undergoing trust planning, drafting, administration or compliance.

This topic will teach you about various aspects of the situs of a trust, including factors that impact the situs of a trust. This material will also discuss how various states tax trusts, comparing the rules in different states, and considering the constitutionality of these rules. This information is critical to attorneys, accountants and other professionals involved in creating trusts, drafting trust agreements, advising clients on the situs and taxation of trusts, and preparing income tax returns for trusts.

Faculty

Melissa M. Price

McDermott Will & Emery