US Supreme Court weighs constitutionality of state income taxation of trusts

On April 16, 2019, the U.S. Supreme Court heard arguments in Kaestner v. North Carolina Department of Revenue. The case will address the extent of the state’s authority to tax the income of certain trusts. The trustees of the Kaestner Trust argued that the North Carolina statute subjecting trusts to income tax based solely on the residency of a beneficiary within North Carolina violates the Due Process Clause of the U.S. Constitution.

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