A trust with a resident trustor (i.e., the person who created the trust) would, by itself, create sufficient nexus to subject a trust to an income-based tax or filing requirement in 62 percent of the states in the U.S., according to the preliminary results of a survey recently conducted by Bloomberg BNA. (For the states that did not respond to the survey, BBNA supplied the state's answer based on the jurisdiction's laws).
Nearly all of the states said they would find nexus based on the residence of the creator of a testamentary trust. The sole exception was Kansas.
Almost all of the states identified factors that would subject an intervivos trust to their jurisdiction's tax. Specifically, nexus would result in:
Maryland was the only state that said it would not find nexus for an intervivos trust solely because it was funded or created by a resident.
These and other findings will be incorporated into the Trust Nexus Evaluator, which is set for release in late August.
By Steven Roll
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)