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Beneficiaries Income Taxes Trustees

Bowditch & Dewey

5 Reasons You Shouldn’t Wait to Make a Will

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August is National Make-A-Will Month, a timely reminder to create or update your will. Whether you’re establishing a career, raising a family, or accumulating assets, having a will in place ensures your loved ones are...more

Rivkin Radler LLP

Trust Beneficiary Engages In Like Kind Exchange Using Trust Property

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It is a basic principle of the income tax that the gain or loss realized by a taxpayer from the conversion of property into cash, or from the exchange of property for other property that differs materially in kind from the...more

Strafford

[Webinar] New IRS Guidance on Basis Adjustments for Irrevocable Grantor Trusts: Key Issues for U.S. and Non-U.S. Persons - June...

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This CLE/CPE webinar will provide estate planners insight on recently issued IRS guidance regarding basis adjustments for irrevocable grantor trusts. The panelist will discuss key items and challenges stemming from Revenue...more

Husch Blackwell LLP

Understanding the Unique Benefits of Beneficiary Intentionally Defective Irrevocable Trusts (BIDITs)

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A Beneficiary Intentionally Defective Irrevocable Trust (BIDIT) provides a unique planning opportunity because it allows a beneficiary to continue to benefit from his or her own assets while maintaining some level of control...more

Keating Muething & Klekamp PLL

Recent IRS Decision Threatens Some Irrevocable Trust Modifications

A recent Chief Counsel Advice issued by the IRS has been described by one team of estate planning experts as “the most important IRS ruling in a decade,” and it directly contradicts the prior IRS position on the issue. Should...more

Bowditch & Dewey

Impact of House Ways and Means Tax Proposals for Trusts, Estates, and Retirement Accounts

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In this second blog post on the House Ways and Means Tax proposals, we address the proposed changes that will affect the taxation of trusts, estates, and retirement plans. As we discussed, on September 13, 2021, the...more

Bowditch & Dewey

When to Take Advantage of a Spousal Lifetime Access Trust (SLAT)

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Under the Tax Cuts and Jobs Act, in 2020 each person may transfer up to $11,580,000 without incurring a gift or estate tax. This generous exemption amount will sunset at the end of 2025, which means that in 2026, the...more

McDermott Will & Schulte

[Webinar] US Taxation of Grantor/Non-Grantor Trusts - June 24th, 3:00 pm BST

Astrid Owen leads this interactive webinar to discuss the US taxation of US beneficiaries and US settlors of non-US trusts. The benefit of using non-US grantor trusts established by a non-US person for US beneficiaries...more

Perkins Coie

U.S. Supreme Court finds in Favor of Taxpayer Trust Beneficiary in Kaestner

Perkins Coie on

On June 21, 2019, the U.S. Supreme Court issued its opinion in North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust. This unanimous decision stated that the State of North Carolina may not tax...more

McGuireWoods LLP

Recent Cases of Interest to Fiduciaries August 2019

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In the most recent installment of the McGuireWoods Fiduciary Advisory Services annual multipart series on recent fiduciary cases, developments in the law concerning various topics are examined through the following: Smith...more

Mitchell, Williams, Selig, Gates & Woodyard,...

U.S. Supreme Court Limits the Ability of States to Tax a Trust – The Kaestner Case

On June 21, 2019, the U.S. Supreme Court issued an opinion limiting the ability of a state to impose income taxes on a trust when the trust’s connection with the taxing state is minimal. The case is styled North Carolina...more

Roetzel & Andress

Trusts, Beneficiaries, And The Application Of State Income Tax

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In North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, Case No. 18-457, 588 U.S. __ (2019), the Supreme Court revived the two-prong test from Quill v. North Dakota, 504 U.S. 298 (1992) and held...more

McGuireWoods LLP

North Carolina Revenue Department Sets Deadline to Claim Refunds Under Kaestner

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On July 2, 2019, the North Carolina Department of Revenue issued a notice setting December 21, 2019, as the deadline for certain taxpayers to file amended returns or tax refund claims based on the U.S. Supreme Court decision...more

Jones Day

United States Supreme Court Rules State Cannot Tax Trust’s Income

Jones Day on

Kaestner ruled that a state's taxation of a trust's income, where the only connection to the state was an in-state beneficiary, violates the Due Process Clause. On June 21, 2019, the United States Supreme Court unanimously...more

Proskauer Rose LLP

Wealth Management Update - July 2019

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Supreme Court Ruling in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, 588 U.S. [TBD] and its Relevance to Income Taxation of Accumulated Income in California Trusts - The Supreme Court...more

Proskauer - Tax Talks

State Tax on Trust Income Based Solely on In-State Residence of Beneficiaries Found Unconstitutional

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On June 21, 2019, the United States Supreme Court decided North Carolina Dept. of Revenue v. Kimberly Rice Kaestner 1992 Family Trust (hereinafter, “Kaestner”). In a unanimous opinion delivered by Justice Sotomayor, the Court...more

Davis Wright Tremaine LLP

Remember State Income Taxes When Creating a Trust to Own Family Business Interests

Oftentimes, a family business will be owned in part or entirely by one or more irrevocable trusts. Whether those trusts are subject to state income tax depends on the location of any one or more of: (1) the...more

McDermott Will & Schulte

Trust Wins Due Process Challenge to North Carolina State Income Tax

Last week, the US Supreme Court ruled that North Carolina may not tax a trust’s income when the trust’s only contact with the state is the in-state residence of discretionary beneficiaries. The Due Process Clause requires a...more

Smith Debnam Narron Drake Saintsing & Myers,...

Supreme Court Issues Ruling in Tax Case

There’s big news in the tax and trusts and estates world. The U.S. Supreme Court released its opinion in the North Carolina Dept. of Revenue v. Kimberley Rice Kaestner 1992 Family Trust case...more

Troutman Pepper Locke

Supreme Court Sets Limits on State Income Taxation of Trusts

Troutman Pepper Locke on

On June 21, the U.S. Supreme Court issued a unanimous decision in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust (Kaestner), holding that a trust is not subject to fiduciary income tax in a...more

Neal, Gerber & Eisenberg LLP

Client Alert: U.S. Supreme Court Rejects State Attempt to Tax Undistributed Income of a Trust Based Solely on Trust Beneficiaries...

On June 21, 2019, the United States Supreme Court unanimously held, in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, that the North Carolina Department of Revenue could not...more

Akerman LLP - SALT Insights

Nothing To See Here? – Kaestner Trust Decision Leaves Many Unanswered Questions

The U.S. Supreme Court recently issued its decision in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Trust. The Court unanimously determined that the residency of in-state beneficiaries alone is an...more

Kilpatrick

Kaestner Trust Three Key Takeaways

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On June 21, 2019 the United States Supreme Court issued its opinion for North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust. Not surprisingly, based on how oral argument went, the Court ruled that...more

Williams Mullen

SCOTUS Finds that Application of North Carolina’s Trust Income Tax Is Unconstitutional

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On Friday, June 21, 2019, the Supreme Court of the United States ruled in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust that a state cannot tax a trust based only on a trust beneficiary’s...more

Cole Schotz

Supreme Court Unanimously Rules That States Cannot Tax Trusts Based Solely On Location Of Beneficiaries

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In a closely-watched decision, the U.S. Supreme Court unanimously ruled that a beneficiary’s residence within a state alone does not subject a trust to such state’s income tax. In North Carolina Dept. of Revenue v. Kimberley...more

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