Incomplete Gift Non-Grantor Trusts: How Kaestner Highlights the Importance of Planning for State Income Tax

By Lindsay R. DeMoss D’Andrea
Gift Tax Characteristics of INGs

Gift Tax Characteristics of INGs


In North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust, 139 S. Ct. 2213 (2019), the US Supreme Court held that the in-state residence of trust beneficiaries did not supply the minimum connection with the State of North Carolina required to support the State’s imposition of tax on trust income and that the state’s tax as applied to the Kaestner trust violated the Due Process Clause of the Fourteenth Amendment to the US Constitution.

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