State Taxation of Out-of-State Trusts: Minimal Guidance About Minimum Contacts
Author: Jonathan L. Entin.
Source: Volume 37, Number 01, Fall 2019 , pp.66-74(9)
< previous article |next article > |return to table of contents
Abstract:
In North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, the Supreme Court held that the residence of a beneficiary who did not receive a distribution and had no vested right to distributions did not allow the state to tax an out-of-state trust that had no other contact with the state. But the Court’s decision was limited to the precise facts of the case, thus leaving open a host of questions that will generate uncertainty. This article reviews the Kaestner decision and explains the issues that the ruling left unresolved.Keywords: North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, physical presence, minimum contacts test, due process
Affiliations:
1: Case Western Reserve University.