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 minimum connection between a state and the person it seeks to tax. The mere residency of the discretionary beneficiaries of a trust is not sufficient to satisfy this requirement.

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Carlyn S. McCaffreyCarlyn S. McCaffrey
Carlyn S. McCaffrey provides legal counsel on domestic and international tax and estate planning for high-net-worth individuals. She also advises individuals and institutions on charitable planning matters. Carlyn is co-head of the Private Client practice in the Firm's New York office. A frequent lecturer on subjects relating to tax law, trusts and estates, foreign trusts and matrimonial law, Carlyn is also an extensively published author on these topics. Read Carlyn McCaffrey's full bio.


AvatarLaurelle M. Gutierrez



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