![The Evolving Landscape of State Income Taxation of Trusts The Evolving Landscape of State Income Taxation of Trusts](https://eu-images.contentstack.com/v3/assets/bltabaa95ef14172c61/bltbe0fe76600d2c257/6734cf48a15399ba377b4f50/cundiff-promo.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
Trusts serve an integral role in the administration of family wealth. Relatively stable state tax systems have long provided for the collection of trust income taxes. However, taxpayers in three recent cases have successfully challenged the constitutional foundation on which the state income taxation of many trusts is based. While these are positive developments from a tax planning perspective, trustees now face difficult tax compliance and reporting issues in carrying out fiduciary obligations. Trustees, beneficiaries and their advisors should carefully consider action that could substantially reduce state income tax obligations.
Trust Income Taxation
Increasing tax rates and enhanced enforcement efforts have placed a premium on the juri...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?