U.S. Supreme Court holds presence of resident discretionary beneficiaries does not justify North Carolina income taxation of nonresident trustee in Kaestner Trust. When determining whether a trustee of a nongrantor trust must pay a particular state’s income tax on retained ordinary income and capital gains, practitioners should resist the impulse to consult the governing-law clause in the Will or trust instrument.
Help minimize your state income tax liability with a personal trust administered in the First State.If you are a New York resident with appreciated assets and would like to potentially avoid paying high state and local taxes on that appreciation, establishing a trust in Delaware may help minimize your New York tax liabilities.You do not need to have a current trust in order to take advantage of this opportunity.
In this recent New York Times reprint, Chief Wealth Strategist Alvina Lo shares her insights. With the rule on alimony and deductions changed, so must the strategy of couples parting ways.In particular, couples going through a divorce should re-examine their tax strategy, as well as their cash flow and spending needs.Wealthier families should consult with their tax advisors to fully understand the tax implications of the new law.