Jan. 16 article, Forbes noted work by McGuireWoods’
Ron Aucutt, a longtime national thought leader on estate planning and taxation
issues, in its coverage of the U.S. Supreme Court’s decision to hear a
trust tax case with major consequences for states and trust beneficiaries.
The issue posed in
North Carolina Department of Revenue v. the Kimberley Rice Kaestner
1992 Family Trust
is whether the Constitution’s due process clause bars states from taxing
trusts based on the residency of trust beneficiaries. The court’s ruling
could affect hundreds of millions of dollars each year in income tax
Aucutt, the editor of recent development materials for the Heckerling
Institute of Estate Planning, cited the controversy now before the court as
top estate-planning development of 2018, as Forbes noted prominently in its story.
In the absence of guidance from the U.S. Supreme Court, state courts that
have considered the application of their states’ income taxes to the income
of trusts have applied various principles.