SCOTUS Kaestner Ruling on State Trust Income Taxation: Key Considerations for Trusts and Estates Counsel
In-Depth Case Analysis, Income Tax Challenges for Nonresident Trusts, Planning Techniques
Note: CPE credit is not offered on this program
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide trust and estate counsel with a detailed analysis of the U.S. Supreme Court's ruling in North Carolina Dept. of Revenue v. Kaestner 1992 Family Trust and its impact on trusts and estate planning. The panel will discuss key points of interest in the Court's decision, allocation of state-sourced income between trusts and beneficiaries in nonresident trusts with resident beneficiaries, fiduciary liability, and effective planning techniques in light of the Court's ruling.
Outline
- State taxation of resident trusts
- U.S. Supreme Court ruling in N.C. Dept. of Revenue v. Kaestner and denial of writ of certiorari in Minn. Dept. of Revenue v. Fielding
- Determining whether a trust is resident or nonresident
- Key issues for nonresident trusts
- Income allocation between nongrantor trust and beneficiaries in multistate contact situations
- State apportionment issues for trusts holding active business income
- Best practices and planning steps for trust and estates counsel
Benefits
The panel will discuss these and other relevant topics:
- How does North Carolina Department of Revenue v. Kaestner 1992 Family Trust impact residency?
- What factors were considered in the U.S. Supreme Court's denial of writ of certiorari in Minn. Dept. of Revenue v. Fielding?
- Critical factors in determining whether a trust is resident or nonresident for state income tax purposes
- Challenges in allocating income between a nonresident trust and its beneficiaries
- Issues when trusts receive active business income from multiple states outside of its resident state
Faculty
Catherine B. Eberl
Partner
Hodgson Russ
Ms. Eberl regularly advises clients on all aspects of estate planning, including estate, gift, and fiduciary income tax... | Read More
Ms. Eberl regularly advises clients on all aspects of estate planning, including estate, gift, and fiduciary income tax planning; cross-border estate planning; charitable giving; and family business succession planning. She regularly practices in Surrogate's Court and counsels both fiduciaries and beneficiaries with respect to the administration of trusts and estates. Ms. Eberl also advises both private foundations and public charities on governance issues and on satisfying IRS operational requirements.
Close
Julian A. Fortuna
Partner
Taylor English Duma
Mr. Fortuna focuses his practice on domestic and international tax planning and tax controversy matters. His industry... | Read More
Mr. Fortuna focuses his practice on domestic and international tax planning and tax controversy matters. His industry experience spans clean energy, entertainment, health care, higher education, hospitality, manufacturing, non-profit, real estate and retail. Mr. Fortuna represents business entities, owners and executives, fiduciaries and beneficiaries of trusts and estates, and non-profit entities regarding all types of federal and state income, estate, and gift taxes. In tax controversies, he represents taxpayers in civil and criminal tax audits, investigations and administrative appeals before the Internal Revenue Service (IRS) and various state, local and foreign taxing authorities and in tax litigation before federal and state courts and tax tribunals.
Close
Christiana M. Lazo
Partner
Proskauer
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely... | Read More
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely held businesses in developing and implementing sophisticated domestic and international tax and estate plans. She has significant experience counseling global clients on inbound and outbound planning, particularly advising families with members in multiple jurisdictions on wealth transfers and on tax-efficient investment and business ownership structures.
Close