State Income Tax Treatment of Nonresident Trusts: Compliance Challenges and Planning Opportunities
Determining Residency, Allocating Income Between Trust and Beneficiary, Apportionment Questions
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax professionals and advisers with a practical guide to various states' rules governing nonresident trusts' income tax treatment with multistate income or beneficiary connections. The panel will discuss critical topics relevant to resident and nonresident trusts, focusing on the allocation of state-sourced income between trust and beneficiaries in nonresident trusts with resident beneficiaries. The webinar will also identify states that deviate from federal treatment and those states whose definitions conform to federal but have different calculation bases.
- State taxation of resident trusts
- Which states impose an income tax on resident nongrantor trusts
- Filing requirements
- Grantor vs. nongrantor trust tax treatment
- Determining whether a trust is resident or nonresident
- Key issues for nonresident trusts
- Allocating income between nongrantor trust and beneficiaries in multistate contact situations
- State apportionment issues for trusts holding active business income
- States that deviate from the federal treatment of grantor trust income
- Potential trustee issues in determining trust resident status
- The impact of federal tax reform on state taxation of resident and nonresident trusts
- Planning steps
- Avoiding issues with multiple settlors where settlers live in different states
- Establishing separate trusts in cases where beneficiaries are based in different states
The panel will discuss these and other relevant topics:
- Critical factors in determining whether a trust is resident or nonresident for state income tax purposes
- How do some key states approach allocating income between a nonresident trust and its beneficiaries?
- Issues when trusts receive active business income from multiple states outside their resident state
- Which states deviate from the federal tax treatment of grantor trusts?
- How does North Carolina Department of Revenue v. the Kaestner 1992 Family Trust impact residency?
S. Gray Edmondson
Edmondson Sage Allen
Mr. Edmondson practices in partnership, corporate, and individual tax planning; business transactions, including... | Read More
Mr. Edmondson practices in partnership, corporate, and individual tax planning; business transactions, including mergers and acquisitions; business planning; tax controversy; estate and wealth transfer planning; probate; estate and trust litigation; asset protection; and charitable planning. He has conducted, authored, and directed numerous seminars for professional, academic, and civic groups on taxation, business, asset protection and estate planning.Close
Ms. Wolff represents individual clients in the areas of estate planning, estate and trust administration, estate and... | Read More
Ms. Wolff represents individual clients in the areas of estate planning, estate and trust administration, estate and gift taxation, charitable gift planning, and probate. She previously practiced in the area of state and local taxation and frequently draws from that experience in her current work with clients, particularly with respect to property and income tax issues, in planning for the tax-efficient transfer of wealth. Ms. Wolff has administered trusts with complex assets in multiple international jurisdictions.Close
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