Kaestner Case and State Income Taxation of Trusts

Course Description:You are invited to listen to a complimentary in-depth discussion of a case of extreme importance.




The Supreme Court of the United States on June 21 entered its opinion in North Carolina v. Kaestner, 588 US  (2019). The case represents an extremely important decision for all estate planners, trust officers, trustees, and advisers to be aware. Although the holding is a narrow one, it is vitally important. The Supreme Court held that a state may not impose its income tax on undistributed income of the trust where the only contact with the state is that a beneficiary living in the state, who might receive, but had not received, any distribution from the trust.




The entire decision needs to be considered in planning and in trust administration. For example, the court hints that, perhaps, even holding meetings in a state might provide a sufficient connection to allow the state to tax. Three leading experts, Jonathan Blattmachr, Mitchell Gans and Marty Shenkman will discuss the case and provide explicit recommendations on structuring and administering trusts to avoid state tax on trust income. Mitchell and Jonathan were two of the authors of the ACTEC amicus brief submitted to the Supreme Court on which the court seems to have relied in forming its opinion.




Speakers: Jonathan Blattmachr, Esq., Mitchell Gans, Esq., and Martin Shenkman, Esq.




Sponsor: Peak Trust Company and Interactive Legal.




There are no professional advancement credits (CPE, CLE, etc.) offered for viewing this webinar.