special report multistate tax report 2016 …...when this criteria is applied by several states, it...

2016 TRUST NEXUS SURVEY

/////////////////////////////////

/////////////////

Special ReportMULTISTATE TAX REPORT

Vol. 23, No. 9

Copyright © 2016 by The Bureau of National Affairs, Inc.

Table of Contents

SURVEY ANALYSIS ...................................................S-5

SURVEY RESULTS ..................................................S-19

General Trust Nexus Policies................................S-19

Constitutional Limitations on Taxation of Trusts ......S-24

Nonresident & Part-year Resident Trusts ................S-28

Credit for Taxes Paid to Other States ....................S-32

Trust Administered in State: Part 1 .......................S-36




Trust Created by Will of Resident: Part 1 ...............S-52

Trust Created by Will of Resident: Part 2 ...............S-56

Irrevocable Inter Vivos Trust Created byResident: Part 1 ..........................................S-60






Revocable Inter Vivos Trust Created byResident: Part 1 ..........................................S-86




Revocable Inter Vivos Trust Created byResident: Part 5 ........................................S-102

Resident Trustee: Part 1 ....................................S-106






Resident Noncontingent Beneficiary: Part 1 ..........S-130

Resident Noncontingent Beneficiary: Part 2 ..........S-134

Resident Contingent Beneficiary: Part 1 ...............S-138

Resident Contingent Beneficiary: Part 2 ...............S-142

Situs ..............................................................S-146

QUESTIONNAIRE...................................................S-149

Editorial Staff

Managers: George R. Farrah, CPA, ExecutiveEditor; Karen R. Irby, Esq., Managing EditorState Tax and Accounting; Christine Boeckel,Esq., Kathleen Caggiano, Esq., Annabelle Gib-son, Esq., Steven Roll, Esq., Managing Edi-tors.

Survey Editors: Lauren Colandreo, Esq. andChreasea Dickerson, Esq.

State Tax Editors: Rishi Agrawal, Esq.,Christopher Bailey, Esq., ReneBlocker, Esq., Emilie Burnette, Esq.,Jequetta Byrd, Esq., Audryana Cama-cho, Esq., Stephanie Cangialosi, Esq.,Edward Connor, Esq., Michel Daze,Esq., Alexander Dowd, Esq., JamesGatliff, Esq., Cannon-Marie Green,Esq., Ernst Hunter, Esq., Laura Lieber-man, Esq., Rachel Martin, Esq., JasonPlotkin, Esq., Veronica Shade, Esq.,Lindsay Trasko, Esq., Cynthia Wells,Esq.

Editorial Support: Beulah Chin, Pro-duction Manager; CassandraWhite, Publication Specialist.

For information on purchasing copies of thisSpecial Report, please call (800) 372-1033.

(Vol. 23, No. 9) S-3

TAX MANAGEMENT MULTISTATE TAX REPORT ISSN 1078-845X BNA TAX 9-23-16

S-4 (Vol. 23, No. 9)

9-23-16 Copyright � 2016 TAX MANAGEMENT INC., a subsidiary of The Bureau of National Affairs, Inc. TM-MTR ISSN 1078-845X

SurveyAnalysisSurvey Identifies Activities Creating Sufficient Nexus to TaxTrust Income, Jurisdictional Standards Vary Among the States

INTRODUCTION

T he criteria states use for determining if a trust is a resident trust for purposes of their jurisdiction’s income taxcan vary widely and can include several factors, according to the results of a survey conducted by BloombergBNA.1

As in previous years, we asked the states about general trust nexus policies and nexus-creating activities arisingfrom trust administration, trust situs and the domicile or residency of trustors, trustees and beneficiaries.

This year’s survey also included questions regarding the taxation of non-resident and part-year resident trusts. Inaddition, this year the survey asked states about the availability of credits for taxes paid to other states.

If a state deems a trust a ‘‘resident trust,’’ its tax will apply to all of the trust’s taxable income. If a state deems atrust a nonresident trust, its tax will be applied only against income derived from sources within the state’s jurisdic-tion.

An increasingly nomadic society is likely to continue to shape the states’ tax treatment of trusts. Leading practi-tioners cited tax issues created by the variation in trust residency definitions and the impact caused when the partiesinvolved in the trust’s creation and administration move to a different state. For example, a trust that had no contactswith California at the time of creation could become subject to tax as a resident trust in that state if a beneficiarysubsequently moves there. Some practitioners look at the variation as a welcome planning opportunity.

When the average person contemplates establishing a trust for his or her heirs, that person is likely aware that itmay be advantageous to establish the trust in a state that does not impose a personal income tax or one in which hisor her assets would be shielded from creditors. But there are several other factors that can determine whether one ormore states will assert that they are entitled to impose tax against all of the trust’s income.

Some of these factors extend beyond events that could have been contemplated when the trust was created. Theseissues can be compounded when a trust has ties to several states, each of which may treat the trust as a resident trustbased on different factors. For example, a trust can become subject to tax in some jurisdictions solely as a result ofhaving a beneficiary move there. This varying patchwork of state standards for determining if a trust is a ‘‘residenttrust’’ can result in unexpected state income tax liabilities for the unwary.

There are five basic ways in which a trust can become subject to a state’s income tax:

s the trust was created under the will of a testator who was domiciled or lived in the state;

s an inter vivos trust was created or funded by a person who was domiciled or lived in the state;

s the trust is administered in the state;

s a trustee lives in the state; or

s a beneficiary lives in the state.

1 Thirty eight of 44 jurisdictions that impose an individual income tax participated in the survey. Jurisdictions that did not par-ticipate in the survey are not included in the analysis of the survey responses, except in limited instances in which the responsesare based on Bloomberg BNA’s interpretation of the jurisdiction’s tax laws. The jurisdictions that did not participate in the 2016survey are as follows: Colorado, Delaware, Kentucky, New York, New York City and Pennsylvania.

SURVEY ANALYSIS (Vol. 23, No. 9) S-5


When this criteria is applied by several states, it is possible for more than one jurisdiction to conclude that it is en-titled to tax 100 percent of a trust’s income. Leading practitioners recognize the complexity of navigating the differ-ing tax systems among the states.

This variation ‘‘definitely causes problems,’’ David A. Berek, a partner at Baker & McKenzie in Chicago, Ill., toldBloomberg BNA Sept. 8. ‘‘If you look at the fiduciary income tax laws, many of the states will say ‘if you create it inthis state, then for the rest of eternity it will be taxed in that state, regardless of where all the parties are.’ That justdoesn’t make any sense. When you say it out loud like that, I think most people would say that doesn’t seem fair,’’ heexplained.

‘‘From what I have seen and heard,’’ Thomas W. Aldous, Jr., at Gillette Phelps in Mesa, Arizona, told BloombergBNA Sept. 13 via e-mail, ‘‘it seems that...some [practitioners] may assume that only one state can tax a trust or theyare otherwise unfamiliar with the other states’ laws. The issues become more acute with larger trusts, especially largefamily trusts with multiple beneficiaries, trustees or committees that have multistate contacts,’’ he added.

Although Berek recognizes that the wide variety in trust residency definitions creates a problem, ‘‘that problem isalso an opportunity. You potentially can avoid being subject to tax in a state just by being aware of how to adminis-ter the trust,’’ he said.

Minimizing Exposure

One way to limit exposure to state income tax is to establish the trust in a state that does not impose such a levy.Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not subject trusts to income tax. Ten-nessee currently taxes only dividend and interest income, but will join those states that do not tax trusts in the nearfuture. Trusts are no longer subject to New Hampshire’s tax on dividend and interest income for periods ending onor after Dec. 31, 2013. However, the tax still applies to residents of the state who receive distributions.

Trusts established in a state that imposes an income tax, or states with the highest tax rates may still be able tobenefit from these lower rates. The most common way the variation in resident trust definitions can be used to atrust’s advantage is to move the trust to a state that does not subject trusts to an income tax or that has a lower over-all tax rate, said Aldous. ‘‘It is possible to avoid tax in a state that would otherwise tax a trust by adding trustees. Ifprimary trust administration occurs in a state with a lower tax rate or no tax, the states where other trustees live maynot tax the trust,’’ Aldous added.

However, even trusts that adhere to this strategy can become subject to tax in another state based upon factorssuch as the residence of a trustee, the location of the trust’s assets or use of a taxing state’s governing law in the trustdocument. In states that do impose tax, the rates can differ dramatically. North Dakota imposes the lowest rate at 2.9percent while California is the highest at 12.3 percent.

One Trust, Many Factors: Nexus in Multiple States?

CA

MN

NY

VACO

MA

Source: Bloomberg BNA

IL

Beneficiary

Trustor

Trust Assets

Corporate Trustee

Change of location

S-6 (Vol. 23, No. 9) SURVEY ANALYSIS


Top 10 Lowest Maximum Tax Rates

Rank State Tax Rate10 Ohio 4.997%9 New Mexico 4.9%8 Colorado 4.63%7 Kansas 4.6%6 Arizona 4.54%5 Michigan 4.25%4 New York City 3.88%3 Indiana 3.3%2 Pennsylvania 3.07%1 North Dakota 2.9%

Top 10 Highest Maximum Tax Rates

Rank State Tax Rate10 Wisconsin 7.65%9 Hawaii 8.25%8 New York 8.82%7 District of Columbia 8.95%6 New Jersey 8.97%5 Iowa 8.98%4 Vermont 9.4%3 Minnesota 9.85%2 Oregon 9.9%1 California 12.3%

Some attributes of a trust that can affect a state’s imposition of tax are more controllable than others. Character-istics of a trust such as the trust’s governing law, the state where it is administered and the location of the trustee canbe changed at any point after the trust’s inception. Changing other characteristics, though, can be more difficult de-pending on the circumstances. Examples include the location of the trust’s fixed assets, sources of trust income orresidence of a beneficiary.

Factors that do not apply in all states but, when they apply, are not possible to change include the state of resi-dence of the trust settlor at the time of creation of the trust or, for testamentary trusts, the testator’s domicile at death.

Some states generally consider several factors to determine if a state meets the definition of a ‘‘resident trust.’’ Forinstance, regulations in Idaho provide that a trust is a resident trust if it meets three out of five specified conditions.Other states single out fewer factors.

Even though definitions of trust residency are not uniform among the states, all states are bound by the constitu-tional limitations underlying the concept of ‘‘nexus.’’ The states’ power to impose tax is dependent on this concept,which generally means the threshold of contact that must exist between a taxpayer and a state before the state hasjurisdiction to tax the taxpayer.

The due process clause of the U.S. Constitution requires that there be some minimum connection between a stateand the person, property or transaction it seeks to tax. Similarly, the U.S. Constitution’s commerce clause, whichgoverns the taxation of interstate commerce, requires that there be a ‘‘substantial nexus’’ between the taxed activityand the taxing state.

Substantial NexusThe U.S. Supreme Court in Complete Auto Transit Inc. v. Brady, 430 U.S. 274 (1977), established a four prong test

for determining if a state tax passes muster under the commerce clause: (1) the taxpayer must have a substantialnexus to the taxing jurisdiction; (2) the tax must be fairly apportioned; (3) the tax being imposed upon the taxpayermust be fairly related to the benefits being conferred by the taxing jurisdiction; and (4) the tax may not discriminateagainst interstate commerce.

The first prong of the Complete Auto Transit test—substantial nexus—is one of the most highly disputed areas ofstate tax law. In Quill Corporation v. North Dakota, 504 U.S. 298 (1992), the U.S. Supreme Court established a brightline standard for determining substantial nexus: physical presence in the taxing state. Quill involved use taxes, whichraises the question of whether the physical presence rule applies to income taxes.

Even though substantial nexus is commonly the most controversial prong of the Complete Auto Transit test, allfour prongs must be satisfied to avoid violating the commerce clause.



Due ProcessThe due process analysis, unlike the Complete Auto Transit test, is a two-pronged approach articulated by the U.S.

Supreme Court in Quill. First, any entity subject to tax by a state must have ‘‘some definite link, some minimum con-nection, between a state and the person, property or transaction it seeks to tax.’’ Second, ‘‘income attributed to theState for tax purposes must be rationally related to values connected with the taxing State.’’

Constitutionality of Trust Residency StatutesTaxpayers have successfully used constitutional principles to challenge the application of a state’s income tax to a

trust. Together, the due process analysis and the Complete Auto Transit test have formed the basis for these taxpayerchallenges.2 More recent examples are cases out of North Carolina and New Jersey.

In The Kimberley Rice Kaestner 1992 Family Trust v. North Carolina Dept. of Rev., No. 12 CVS 8740, 2015 BL119214 (N.C. Super. Ct. Apr. 23, 2015), aff’d, No. COA-896, 2016 BL 214637 (N.C. Ct. App. July 5, 2016), the NorthCarolina Superior Court found that North Carolina’s taxation of a trust as a resident violated both the commerceclause and the due process clause. Under N.C. Gen. Stat. §105-160.2, North Carolina subjects any trust with a resi-dent of North Carolina as a beneficiary to income tax as a resident. In this case, the trust had no other connection toNorth Carolina other than the trust beneficiaries being residents of the state.

The court determined the trust ‘‘established that it did not have contacts of a sufficient quality or quantity to besubjected to taxes by the state of North Carolina and to satisfy the requirements of due process.’’ Furthermore, thecourt noted that ‘‘G.S. §105-160.2 fails to satisfy the first or fourth prongs of the Complete Auto Transit test.’’ Ulti-mately, the court found the trust did not meet the minimum standards of contact with North Carolina under eitherthe due process analysis or the Complete Auto Transit test and, therefore, could not be taxed as a resident trust.

‘‘It is not clear from the survey,’’ Aldous said, ‘‘whether North Carolina will accept this decision for all similarlysituated taxpayers.’’

In Residuary Trust A v. Dir., Div. of Taxation, No. A-3636-12T1, 2015 BL 5761 (N.J. Super. Ct. App. Div. May 28,2015), the New Jersey Superior Court, Appellate Division, affirmed the New Jersey Tax Court’s order granting sum-mary judgment in favor of the trust, which challenged the ability of New Jersey to properly tax the undistributed in-come of a testamentary trust.3

In support of its position, the trust argued that during the tax period at issue, Trust A lacked sufficient contact withNew Jersey for the state to impose an income tax on the trust as a resident trust because a New Jersey resident didnot serve as a trustee and no assets were located in the state. The court agreed with the trust, finding that simply us-ing a New Jersey address on an income tax return does not create the required contacts between Trust A and NewJersey to overcome the due process threshold.

Lila Disque, counsel for the Multistate Tax Commission in Washington, D.C. told Bloomberg BNA Sept. 8 that thedifference between court decisions such as these and the states’ unchanged statutes ‘‘creates uncertainty.’’ This un-certainty is ‘‘something to avoid for the sake of the state and for the sake of the tax practitioner,’’ she added.

Taxpayers should keep these cases on their radar, as questions of constitutionality are likely to continue. ‘‘I be-lieve we will see more litigation on this issue,’’ Aldous said, adding that ‘‘eventually the U.S. Supreme Court will needto resolve the matter.’’ Although the facts and circumstances are case specific, taxpayers should remain aware of howeach state applies its residency statute.

Awareness of Credits Critical to Trust AdministrationAs the likelihood that a trust will face taxation as a resident in multiple states continues to grow, taxpayers and

practitioners must remain aware of the availability of credits for taxes paid to other states. Credits available to trustsfor taxes paid in other states is not necessarily a growing area, according to Berek. ‘‘Attention to it is growing,’’ hesaid.

Generally, three conditions must be met before a credit for taxes paid to another state can be awarded to a trust:the trust must have nexus in multiple states, the trust must be subject to double taxation and the trust must have ac-tually paid the tax liability in the state in which it is not claiming the credit. ‘‘If you have a credit, that means you’repaying tax in that state,’’ Berek said.

However, even when these conditions are met a trust may not be permitted to claim the credit. Whether a creditwill be available depends on the particular state statute in question. Some common statutory barriers to claiming acredit include reciprocity and the type of tax being imposed.

‘‘There are also -- which I think might be more common -- situations where they don’t receive a full credit for taxespaid to another state,’’ Disque said. ‘‘The credit may be limited to tax paid to another state on income derived fromthat state.’’

After determining whether the trust is subject to tax in a particular state and if credits are available, practitionersmust be aware of what Berek considers to be ‘‘a critical component of the administration.’’ ‘‘A practitioner that’s pro-

2 See Linn v. Illinois Dept. of Rev., 2 N.E.3d 1203 (Ill. App. Ct. 2013) (finding that applying the state’s tax to an inter vivos trustwould violate due process because the trust lacked sufficient connections with Illinois); McNeil v. Commonwealth, 67 A.3d 185 (Pa.Commw. Ct. 2013) (finding that the imposition of Pennsylvania’s personal income tax on two inter vivos trusts that were located in,administered in, and governed by the laws of Delaware violated the commerce clause).

3 See Residuary Trust A v. Dir., Div. of Taxation, 27 N.J. Tax 68, 2013 BL 5761 (2013).



cessing a large volume of fiduciary returns should definitely be on top of where the credits are and what alternativesthey have,’’ he said.

BLOOMBERG BNA SURVEYEach year, Bloomberg BNA’s Trust Nexus Survey aims to identify the activities that may subject a trust to tax as a

resident trust in each state.

In light of the increasing number of cases surrounding this determination, Bloomberg BNA also sought to high-light the constitutional limitations placed on each states’ ability to tax trusts as residents of their state. We asked statetax administrators if their state applies Quill when determining whether a trust is subject to taxation as a residenttrust and if they have binding judicial precedent addressing these limitations.

Unchanged from last year, only four states (California, Hawaii, Oregon and Vermont) responded that they applyQuill when making trust residency determinations. Similarly, only five states, including California, Illinois and NewJersey, said that they have binding judicial precedent on this topic.

As the complexity surrounding the taxation of trusts continues to grow, nonresident trusts are also faced withchallenges in determining their tax liability in multiple states. To address this growing trend, the survey added newquestions regarding how nonresident and part-year resident trusts are taxed and the availability of credits for taxespaid to other states.

Unsurprisingly, a majority of states indicated that nonresident trusts are subject to tax in their state. Of these 28states, 25 states indicated that nonresidents are taxed on their state-source income only. Most states (21) also permittrusts to be taxed as part-year residents: 14 states treat part-year resident trusts as residents only for a portion of theyear, 4 states treat them as nonresidents for the entire year and 3 states treat them as residents for the entire year.

Credits for Taxes Paid to Other States

This year, Bloomberg BNA introduced a series of questions seeking to identify whether states allow resident ornonresident trusts to claim a credit for taxes paid to other states in which they are taxed.

‘‘States generally impose an income tax on the trust’s entire income in their state of legal residence, and then theygive credits for taxes paid to other states as a nonresident,’’ Disque said. The survey results illustrate this point. Ofthe states responding to the survey, 27 states indicated that they offered resident trusts a credit for taxes paid to otherstates in which the trust is considered a nonresident.

Twenty-four states also said they offered resident trusts a credit for taxes paid to other states where the trust isconsidered a resident. ‘‘It was very interesting that [so] many states give credits to resident trusts for taxes paid inother states where they are residents,’’ Disque said, noting that state statutes for taxes paid to other states can be‘‘really complex.’’

Unlike the availability of credits for resident trusts, the vast majority of states surveyed stated they do not offer acredit for taxes paid to other states to nonresident trusts. Only four stated that nonresident trusts can claim a creditfor taxes paid to a state where they are considered a resident. One state, Mississippi, even responded that a nonresi-dent trust may claim a credit for taxes paid to another state in which the trust is considered a nonresident.



General Categories Creating Trust Residency

In order to identify the general activities causing a trust to be considered a resident trust, the survey breaks downtrust activities into six broad categories:

s using the state’s law as the governing law of the trust,

s administering the trust in the state,

s having a trustor that is domiciled in or a resident of the state,

s having a trustee that is domiciled in or a resident of the state,

s having a beneficiary that is domiciled in or a resident of the state, and

s owning assets located in the state.

The survey asked the states to identify which of these categories are generally used when determining whether atrust will be taxed as a resident trust. It then asked more specific questions related to each category.

Although states most often responded that they subject trusts to tax as a resident trust based on only one of thesecategories, almost 20 percent of the jurisdictions do so based on all, or almost all, of these categories, according tothis year’s survey. 4

Of the jurisdictions with an individual income tax, Connecticut, New Jersey, Vermont and 12 others are least likelyto tax trusts, indicating only one category will create nexus. Idaho, Montana, North Dakota, Virginia and West Vir-ginia, on the other hand, responded that they will impose income tax on a trust based on any of the six categories.

Trusts are most likely to be subject to tax when the trustor is domiciled in or a resident of the state, with 28 juris-dictions responding that the trustor’s domicile or residency will create nexus. Another factor that several states saidwould trigger taxation is administering the trust in the state (24 states).

Activities least likely to trigger taxation in most states are:

s using a state’s governing law as the governing law of the trust (16 states); and

s having a resident beneficiary (10 states).

4 Colorado, Delaware, Kentucky, New York, New York City and Pennsylvania did not respond to the 2016 survey. Additionally,Alabama and Maine did not provide ‘‘yes’’ or ‘‘no’’ responses. As a result, these states are categorized based on an analysis of statelaw. The categories assigned to these states by Bloomberg BNA editors can be found in a chart at the end of this analysis. For allother states, please refer to the Survey Responses section of this report.

This map compares the likelihood that a trust will be taxed in a particular state by identifying the number of broadly categorized actions triggering income tax of trusts. Categories include: state’s law governs the trust, administering the trust in the state, having a trustor or trustee or beneficiary that is a resident of the state or owning assets in the state.

NOTE: AL, CO, DE, KY, ME, NY, NYC and PA did not provide “yes” or “no” responses to the 2016 survey. As a result, theses states are categorized based on an analysis of state law.

Where is My Trust Most Likely to be Taxed?Trusts in 42 of 50 states, the District of Columbia and New York City may be subject to income tax based on a number of factors.

Not taxed

Taxed based on 1 category

Taxed based on 2 categories





HI

Source: Bloomberg BNA 2016 Trust Nexus Survey

WA

OR

CA

NV

ID

MT

WY

CO

NM

TX

OK

MO

AR

LAMS

AL GA

SC

NC

VAWV

PA

NY

ME

TN

KY

FL

KS

NE

SD

ND

MN

WI

IN

MI

OHIL

IA

UT

AZ

DC

VTNHMARI

CTNYCNJ

DEMD

AK



Nexus From a Beneficiary in the State

But even some of these lesser used factors could pose significant problems for unsuspecting practitioners. One is-sue that may arise for practitioners, according to Berek, is the mobility of clients. ‘‘We need to think about how weare advising clients and understand that with today’s mobile society, which is different than what it was when theselaws were put in place in the ’60s, clients move all over.’’

The inability to foresee or control where a beneficiary may be located is of particular concern for trusts in the mi-nority of states that said nexus would result from the presence of a beneficiary within their borders. California wasamong these 10 states.

‘‘State overreach in this area is not uncommon,’’ Aldous told Bloomberg BNA Sept. 13 via e-mail, using the Dis-trict of Columbia as another example of a jurisdiction which responded that it will tax a trust as a resident when abeneficiary is present even though the D.C. Code determines the residency of a trust based on the trustor’s domicile.

West Virginia also said that nexus would result from the presence of a beneficiary within its borders. But thestate’s law suggests otherwise. West Virginia Code §11-21-3 subjects trusts to income tax depending on whether thetrust is a resident of West Virginia. A trust’s residency, as determined under W.V. Code §11-21-7(c) and W. Va. CodeR. tit. 110, §110-21-7(7.3), is based only on the trustor’s domicile. The domicile or residency of the beneficiary is nottaken into consideration under West Virginia law when determining whether the trust is a resident. Additionally, Ex-ample 1 in W. Va. Code R. tit. 110, §110-21-7(7.3.1) further contradicts the state’s responses on this issue when it ex-plains that a trust with resident beneficiaries, but no other connection to West Virginia, is a nonresident trust.

‘‘[M]any states believe that if a trust is created by a domiciliary of that state, the continued presence of a trustbeneficiary within the state is a sufficient contact under the constitution to allow the state to tax the trust even thoughthe person who created the trust is no longer living in the state or even if the trust is administered outside of thestate,’’ Aldous said. ‘‘Some states may be answering the questions [in the survey] with that understanding.’’

Trustor’s Domicile/Residency Is Driving Factor for Nexus

Domicile or residency of the trustor is frequently used as the basis for state income tax of trusts, despite the legalissues states may face when using such a standard.

For state tax purposes, domicile is generally a person’s fixed and permanent home and the place to which the per-son intends to return when he or she is away. Domicile is determined based on the facts and circumstances of eachcase. An individual’s intent is the primary consideration when determining whether a taxpayer’s domicile haschanged.

Under most states’ laws, an individual may have only one domicile, but he or she may have more than one resi-dence and may be considered a resident of more than one state. Residency, when being statutorily defined under thestates’ income tax laws, is often determined based on either domicile or whether the individual maintained a perma-nent place of abode in the state and spent a minimum amount of time in the state. Some states, however, take intoconsideration either a permanent place of abode or a minimum amount of time spent in the state instead of a combi-nation of both of these factors.

Most Common Activities Triggering Income Tax for Trusts

Yes

No

Depends

No Response

• AK, FL, NH, NV, SD, TX, WA and WY do not subject trusts to income tax and are not included in this chart.

• New York City and the District of Columbia are treated as states for the purpose of this survey.

• CO, DE, KY, NY, NYC and PA did not respond to the 2016 survey. As a result, the data for these states is based on an analysis of state law.


Using the State’s Law as Governing

Law of Trust

Administering the Trust in the State

Having a Trustor who is a Domiciliary or

Resident of the State

Having a Trustee who is a Domiciliary or

Resident of the State

Having a Beneficiary who is a Domiciliary

or Resident of the State

Owning Assets Located in the State

16

24

28

19

10

20

25

16

13

21

30

20

1 2 1 2 1 2 2 2 2 2 3

2



Over 50 percent of the jurisdictions said that one or more activities relating to a resident trustor may cause thetrust to be taxed. Of these 28 states, the trustor’s domicile or residency subjects both testamentary and inter vivostrusts to taxation in almost all jurisdictions. However, the trustor’s domicile or residency does not create nexus foran inter vivos trust in Iowa, Louisiana, Utah or Wisconsin.

Trustors of Testamentary Trusts. The survey asked states to identify whether specific activities relating to the trus-tor’s domicile or residency create nexus for testamentary trusts. Specifically, the survey asked each state if taxationas a resident testamentary trust occurs when the trust is created by the will of a testator or by a decedent who:

s was domiciled in the state as of the testator’s date of death,s lived, but was not domiciled, in the state as of the testator’s date of death,s maintained a permanent place of abode in the state in the year of the testator’s death,s was present in the state either for one to 182 days or for 183 days or more in the year of the testator’s death,s maintained a permanent place of abode in the state and was present in the state either for one to 182 days or

for 183 days or more in the year of the testator’s death,s was present in the state either for one to 182 days or for 183 days or more in the year of the testator’s death,

but did not maintain a permanent place of abode in-state,s was registered to vote in the state in the year of the testator’s death, ors had a valid driver’s license issued by the state as of the date of the testator’s death.

Of these activities, a testator or decedent who was domiciled in the state as of the date of the testator’s death wasthe most popular again this year, with 22 states responding ‘‘yes’’ The number of affirmative responses increasedfrom 21 as a result of the additional response from New Mexico. However, only four states indicated that having atrustor or decedent who spent one to 182 days in the state in the year of the testator’s death, but did not maintain apermanent place of abode in the state, would create nexus. Among these four states is North Dakota, which is alsoamong the group of states most likely to subject a trust to income tax.

The survey posed similar questions with respect to activities creating nexus for irrevocable inter vivos trusts andrevocable inter vivos trusts. The survey also asked states to clarify whether the trustor’s domicile or residency cre-ates nexus for inter vivos trusts at various points of time, including when the trust was created, funded or became ir-revocable.

Trustors of Irrevocable Inter Vivos Trusts. According to the survey results, the trustor’s domicile or residency is mostlikely to create nexus for an irrevocable inter vivos trust when the trust is created by a person who is domiciled inthe state. Even when the trustor is not currently domiciled in the state, several other factors relating to the trustor’sresidency or domicile may subject a trust to tax as a resident trust in a majority of states.

Almost 70 percent of the states which responded that nexus is created by a resident trustor indicated that nexus iscreated for irrevocable trusts when the trust was created or funded by a person who was domiciled in the state whenthe trust was created, or when the trust was funded by a person who is currently domiciled in the state.

YesNoDependsNo ResponseNot Taxed

When is a Trustor’s Residency or Domicile Most Likely to Trigger State Income Tax for the Trust?

NOTE: AK, FL, NH, NV, SD, TX, WA and WY do not subject trusts to income tax and are not included in this chart. New York City and the District of Columbia are treated as states for the purpose of this survey. CO, DE, KY, NY, NYC and PA did not respond to the 2016 survey. As a result, the data for these states is based on an analysis of state law.


2 states (4%)1 state (2%)

28 states (54%)

13 states(25%) 8 states

(15%)

Testamentary Trusts

Inter VivosTrusts

28 states (100%)

24 states (86%)

4 states(14%)



Over half of the states that indicated a trust is subject to tax as a resident trust based on the trustor’s domicile orresidency said a trust that was created or funded by a person that maintained a permanent place of abode in the stateand was present in the state for 183 days or more will be taxed as a resident. Of these states, 12 said that the trustwould be a resident trust if the trustor met both requirements during the year the trust was created or funded andduring the current year.

The District of Columbia and West Virginia only responded ‘‘yes’’ when the trustor met both requirements duringthe year the trust was created or funded. For Maryland, however, nexus is only created when the person that createdor funded the trust maintains a permanent place of abode in the state and spends 183 days or more in the state dur-ing the current year.

Unless the trustor is deemed a resident by maintaining a permanent place of abode in the state, meeting thethreshold for number of days spent in the state or both, the trust is unlikely to be taxed as a resident trust in a statethat bases its determination on the trustor’s domicile or residency. Trusts created or funded by a person who lived,but was not domiciled, in the state when the trust was created are among those activities least likely to cause a trustto be subject to tax as a resident trust, with only four jurisdictions responding ‘‘yes.’’

The survey also asked whether certain activities, such as registering to vote, maintaining a state-issued driver’s li-cense and spending time in the state, create nexus for the trust. States often indicated that although registering tovote or maintaining a state-issued driver’s license do not on their own create nexus, these activities are factors takeninto consideration and, by requiring a current in-state address, may create the domicile necessary to subject the trustto taxation.

States also said nexus is generally not dependent on the length of time the trustor spent or currently spends in-state, most notably because a person’s domicile is not determined merely by the amount of time he or she spendswithin the state.

Trustors of Revocable Inter Vivos Trusts. Overall, fewer states responded that the trustor’s domicile or residencywould create nexus for a revocable trust than for an irrevocable trust. However, certain circumstances relating to thetrustor’s domicile or residency are more likely to subject a revocable trust to taxation as a resident than an irrevo-cable trust.

One such activity is having a trustor who was domiciled in the state at the time of his or her death. Sixteen statesresponded ‘‘yes’’ when addressing revocable trusts, but only 15 responded affirmatively for irrevocable trusts. Hav-ing a trustor who lived, but was not domiciled, in the state at death is also more likely to create residency for a revo-cable trust than an irrevocable trust, with one more state responding ‘‘yes’’ for revocable trusts than for irrevocabletrusts.

Otherwise, similar responses were provided when the states were asked about a trustor of a revocable inter vivostrust.

Like irrevocable inter vivos trusts, a revocable inter vivos trust is most likely to be subject to state income tax as aresident trust when the trustor is currently domiciled in the state. According to the survey results, states are also morelikely to tax the trust as a resident trust when the trustor was domiciled in the state than when the trustor lived, but

Irrevocable Inter Vivos Trust: The Most Common Ways the Domicile or Residence of the Trustor Will Subject an Inter Vivos Trust to Tax

• For purposes of this chart, “statutory resident” means a person that maintained a permanent place of abode in the state and was present in the state for more than 183 days during the year.

NOTE: AK, FL, NH, NV, SD, TX, WA and WY do not subject trusts to income tax. CO, DE, KY, NY, NYC and PA did not respond to the 2016 survey. As a result, these 14 states are not included in this chart. New York City and the District of Columbia are treated as states for the purpose of this survey.


16 16

19 18

4 4

6 6

Trust was created by a person who, at the time the

trust was created:• was domiciled• lived, but not

domiciledin the state

Trust was funded by a person who, at the time the

trust was created:• was domiciled• lived, but not


Trust was created by a person who:

• is domiciled• lives, but not


Trust was funded by a person who:

• is domiciled• lives, but not


Trust was created/funded by a

person who was a statutory resident

when the trust was created/funded

Trust was created/funded by a

person who is a statutory resident

1413



was not domiciled, in the state or when the trustor maintained a permanent place of abode and was present in thestate for 183 days or more.

Use Caution When Appointing a TrusteeWhen appointing a trustee, trustors in over half of the jurisdictions must carefully consider the tax consequences

of doing so. Seventeen jurisdictions responded that a trustee’s domicile or residency will create sufficient nexus forthe trust to be taxed as a resident trust. Additionally, 23 jurisdictions responded that one or more of a trustee’s in-state activities while administering the trust will create nexus.

Of those states basing nexus on the trustee’s domicile or residency, having a trustee domiciled in the state is mostlikely to subject the trust to tax. Other common activities creating trust residency include having a trustee who main-tains a permanent place of abode in the state, is a statutory resident of the state or is a business entity with an officefor conducting trust business in the state. Only 5 states indicated that a trust has sufficient nexus to be taxed as aresident trust when the trust does not maintain a permanent place of abode in the state but is in the state for one to182 days in the year, making this the least likely activity relating to the trustee’s domicile or residency to subject thetrust to taxation as a resident.

‘‘When a trust is created, the person advising the creator of the trust needs to consider the purposes and the sizeof the trust,’’ Aldous said. ‘‘Some trust creators want family members or individuals to serve. If an individual doesserve, the trust creator needs to take into consideration the mobile nature of our society. If the trust creator wants toavoid state income taxes and wants more certainty, a bank or trust company can be a good choice as a trustee be-cause it is easier to avoid abrupt changes in residence,’’ he added.

Berek also said that the residency of the trustee must be taken into consideration when considering a trust. ‘‘Cer-tain states, like California, will just tax a trust because the trustee is there. If you have a choice to choose trustees, Iwould definitely look at what state they live in,’’ he said.

Trust Administered in State. One growing trend is an increased focus on trust administration activities when deter-mining where a trust will be taxed. Berek pointed to the location of the books and records and where the trust advi-sors are as examples. ‘‘Should that have any impact on the taxation because you’re in Missouri and your tax advisordoing the taxes is there? And they are also the trustee. Then you say, wait a minute, I’m actually administering a trustthere. So those types of questions now start to come into the fold,’’ he said.

To determine when the location where a trustee administers the trust will create nexus, we asked the states toidentify whether certain activities will, by themselves, do so. Any of the following activities will create nexus in over75 percent of the states that tax trusts based on the location of trust administration:

s trust is principally administered in-state;s trust accounting, bookkeeping, sales and purchases take place in-state;s majority of the discretionary decisions regarding the investment of trust assets are made in-state;

Trustee Triggers:The Most Common Ways a Trustee Can Trigger State Income Tax of a Trust

• For purposes of this chart, “statutory resident” means a person that maintained a permanent place of abode in the state and was present in the state for more than 183 days.

NOTE: AK, FL, NH, NV, SD, TX, WA and WY do not subject trusts to income tax. CO, DE, KY, NY, NYC and PA did not respond to the 2016 survey. As a result, these 14 states are not included in this chart. New York City and the District of Columbia are treated as states for the purpose of this survey.


Trustee is domiciled in

the state

Trustee lives, but is not

domiciled, in the state

Trustee maintains a permanent

place of abode in the state

Trustee is present in the state for 183 days or more

Trustee is a statutory resident of the state

Trustee is registered to vote in the state

Trustee was appointed by

the state court

Trustee is a business

entity that has an office for conducting

trust business in the state

19

12

16

12

16

12 12

15



s trust assets are managed, or the investment decisions are made, by a corporate trustee located in the state thatis a member of an affiliated group with members located throughout the country; or

s majority of the fiduciary decision making is made in state by a trustee that is a corporate fiduciary engaged ininterstate trust administration.

Whether trust residency is created based on the trustee’s actions may depend on the type of trustee. To clarify thisissue, we asked two similar questions in order to distinguish between fiduciaries with an in-state place of businesswho are individual or corporate trustees in the trust administration business and those who are individuals that arenot otherwise engaged in trust administration. Seventeen states said a trust is taxed as resident when the fiduciary isin the trust administration business, but only 14 states reached the same conclusion when the fiduciary is not.

In nine jurisdictions, simply maintaining the trust’s official documents, books and records is sufficient to createnexus.

One thing that practitioners and trust administrators often find challenging is determining how a state determineswhere a trust is ‘‘principally administered.’’ This term is often defined within the states’ law governing the creationof trusts but it is unclear whether such a definition also applies for trust taxation issues.

For the first time, states were asked to indicate if apply the rules used to determine the trust’s principal place ofthe administration under the probate code when determining whether the trust is administered in their state for trustincome tax purposes. Only 10 jurisdictions, including the District of Columbia, Indiana, New Mexico and West Vir-ginia, responded ‘‘yes.’’

Situs of TrustThe location of the trust assets plays an important role in determining a trust’s residency in almost every state. It

should come as no surprise that a trust owning real property or tangible personal property located in the state willbe considered a resident trust in 25 states.

What may be surprising is that a trust containing an interest in an entity that owns in-state property will also besubject to taxation as a resident trust in just one less state. Of these 24 states, 16 do not distinguish between single-member LLCs and entities other than single-member LLCs when making this determination. In four states (Califor-nia, Connecticut, Oklahoma and South Carolina), trust residency only exists when the entity is something other thana single-member LLC. For Illinois, Utah, Vermont and West Virginia, on the other hand, a trust is only a resident ifthe entity is a single-member LLC.

Trust Nexus Inconsistencies Breed OpportunitiesThe survey is a helpful guide in consultation with each state’s statutes, Aldous added. ‘‘The answers given by a

state may be inconsistent with the statutes or the answers may be addressing a nuance that does not necessarily ap-ply to your particular situation.’’

‘‘You look at the survey and you see there’s a variety of ways that these states tax. You come away with how dif-ficult it is to advise clients that have beneficiaries in multiple states and administration in multiple states. You see allof the different factors, and how they could easily apply,’’ Berek told Bloomberg BNA.

‘‘On the one hand, I see that being problematic because there’s so many different outcomes you could achieve. Onthe other hand, it’s a tremendous opportunity to offer good advice to your clients by taking into account the variousjurisdictions that beneficiaries live in,’’ he said.

Categorization for Jurisdictions That Did Not Provide ‘‘Yes’’ or ‘‘No’’ Responses

Jurisdictions Categories Creating Trust Nexus Source Used by Bloomberg BNAEditors

Alabama Alabama subjects trusts to income tax as a resident trustbased on the following categories:s having a trustor that is domiciled in or a resident of thestate,s having a trustee that is domiciled in or a resident of thestate ands having a beneficiary that is domiciled in or a resident ofthe state.

Ala. Code §40-18-1(33);Ala. Admin. Code r. 810-3-29-.07(2)

Colorado Colorado subjects trusts to income tax as a resident trustbased on the following category:s administering the trust in the state.

Colo. Rev. Stat. §39-22-103(10)

Delaware Delaware subjects trusts to income tax as a resident trustbased on the following categories:s having a trustor that is domiciled in or a resident of thestate ands having a trustee that is domiciled in or a resident of thestate.

Del. Code Ann. tit. 30,§1601(8)



Categorization for Jurisdictions That Did Not Provide ‘‘Yes’’ or ‘‘No’’ Responses − Continued

Jurisdictions Categories Creating Trust Nexus Source Used by Bloomberg BNAEditors

Kentucky Kentucky subjects trusts to income tax based on thefollowing category:s having a trustee that is domiciled in or a resident of thestate.

Ky. Rev. Stat. Ann.§141.020(4); Ky. Rev. Stat.Ann. §141.010(17); Ky.Rev. Stat. Ann. §141.030

Maine Maine subjects trusts to income tax as a resident trustbased on the following category:s having a trustor that is domiciled in or a resident of thestate.

Me. Rev. Stat. Ann. tit. 36,§5102(4)

New York New York subjects trusts to income tax as a resident trustbased on the following category:s having a trustor that is domiciled in or a resident of thestate.

N.Y. Tax Law §605(b)(3)

New York City New York City subjects trusts to income tax as a residenttrust based on the following category:s having a trustor that is domiciled in or a resident of thestate.

N.Y. Tax Law §1305(c);N.Y.C. Admin. Code §11-1705(b)(3)

Pennsylvania Pennsylvania subjects trusts to income tax as a residenttrust based on the following category:s having a trustor that is domiciled in or a resident of thestate.

72 Pa. Stat. §7301(s)(1)and (2)

QUALIFICATIONSSome states qualified their responses as follows:

AlaskaAlaska does not impose a personal income tax.

CaliforniaCalifornia’s 2015 responses were carried over for 2016 at the state’s request. California noted that answers to ques-

tions addressing highly factual areas, such as residency of a trustee or fiduciary, may change based upon the specificfact pattern presented. California has provided in the comments a further explanation where appropriate instead ofa ‘‘yes’’ or ‘‘no’’ response. In addition, California stated that it made no attempt to address the imposition of any feeor license, the distinction between California and non-California source income, the effect of a distribution of trustincome, withholding responsibilities, or the definition of ‘‘non-contingent’’ beneficiary under California law.

ConnecticutConnecticut’s 2015 responses were carried over for 2016 at the state’s request.

FloridaFlorida does not impose a personal income tax.

HawaiiHawaii noted that the views expressed herein are informal opinions for general discussion purposes, subject to

change without notice, and have no binding effect on the Department of Taxation. See Tax Information Release No.2009-01 for more information. Hawaii also said that nexus is determined on a case-by-case basis on the facts and cir-cumstances. ‘‘In completing the questionnaire, we assumed that each item is the only factor a corporation has in Ha-waii and made other necessary assumptions. Our responses provide general information and should not be strictlyinterpreted as our policy on the establishment of nexus. It may not be relied upon in any dispute arising under thefacts outlined in the questionnaire and our responses are subject to change without notice due to future amendmentsto laws, rules, or official Department positions,’’ the state said. Additional information on Hawaii’s taxes is availableat the Department’s website at http://tax.hawaii.gov/.

Iowa‘‘Please be advised this is an informal opinion and is only applicable to the factual situation referenced and to the

statutes in existence at the time of issuance,’’ Iowa said. The department also noted that it could take a contrary po-



sition in the future. Any oral or written opinion by department personnel not pursuant to a Petition for DeclaratoryOrder under 701 IAC 7.24 is not binding upon the department, Iowa added.

LouisianaLouisiana said that its reply to the survey constitutes ‘‘informal advice’’ from the Louisiana Department of Rev-

enue, Policy Services Division, as contemplated by Louisiana Administrative Code 61:III.101.D.3, and is not bindingon the Department of Revenue or the person seeking this advice.

MassachusettsMassachusetts said that its responses to the questionnaire constituted an ‘‘information letter’’ within the meaning

of the Letter Ruling Regulation, 830 Mass. Code Regs. §62C.3.2. The responses, the state said, are intended to pro-vide general information such as the potential applicability of the Massachusetts Department of Revenue’s publicwritten statements or well established principles of tax law, but are not intended to provide authoritative guidanceon the application of the tax laws to a specific set of facts. The responses are not a ‘‘ruling’’ or a ‘‘letter ruling’’ thatis legally binding on the department, the state said.

MississippiMississippi said that its response ‘‘is advisory only and is based on the limited information presented in

[Bloomberg BNA’s] inquiry and current interpretations of existing statutes, case law, rules and regulations.’’ It is nei-ther a letter ruling nor a declaratory opinion, the state added.

MontanaMontana said that ‘‘the Department of Revenue’s responses are for general informational purposes only and are

specific to the questions presented in the [Bloomberg] BNA trust nexus survey. The responses are not offered as anddo not constitute written advice, legal advice or legal opinions of the Department of Revenue or the state of Mon-tana.’’

NevadaNevada does not impose a personal income tax.

New HampshireUnder N.H. Rev. Stat. Ann. §77:3, New Hampshire does not impose its dividends and interest tax on trusts for

taxable years beginning on or after January 1, 2013.

New York CityNew York City declined to participate in this year’s survey. New York City noted that trusts are a very small part

of its practice and that its practice consists primarily of corporations, partnerships, bank tax and various excise taxes.

OklahomaOklahoma’s 2014 responses were carried over for 2016 at the state’s request.

PennsylvaniaThe Pennsylvania Department of Revenue stated that ‘‘there are several still developing policies in this area and it

would be too challenging to try to submit responses at this time without clear, defined policies.’’

South CarolinaSouth Carolina’s 2015 responses were carried over for 2016 at the state’s request. South Carolina noted that ‘‘this

is [the author’s] interpretation based on the information provided’’ and that it ‘‘is not to be construed as the SCDOR’sofficial position regarding this matter. It is not binding on the SCDOR or its employees. If a formal, binding ruling isnecessary, please see the Information Guide found on our website, which explains our procedures for requesting aPrivate Letter Ruling,’’ the state also said.

South DakotaSouth Dakota does not impose a personal income tax.

TexasTexas does not impose a personal income tax.



Washington

Washington does not impose a personal income tax.

Wyoming

Wyoming does not impose a personal income tax.



SurveyResultsGeneral Trust Nexus Policies

Resident trustis taxed on:

State1Governing

law2

Locationof trustadmin.3

Decedent’sresidency,

fortestamentary

trust4

Trustor’sresidency,for inter

vivostrust5

Trustee’sresidency6

Beneficiary’sresidency7

Trustsitus8

Worldwideincome9

State–sourceincomeonly10

Alabama11No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona12 No Yes13 No No Yes No Yes14 Yes No

Arkansas No Yes No No Yes No Yes Yes No

California No Yes Yes Yes Yes Yes Yes15 Yes16 No17

Connecticut No No Yes Yes No No No Yes No

1 Responses in bold indicate the answers changed from last year’s survey or the state is answering the questions for the firsttime.

Depends indicates that the respondent’s answer would depend on the facts and circumstances.AK, FL, NV, SD, TX, WA and WY do not impose an individual income tax.NH does not subject trusts to its income and dividends tax.CO, DE, KY, NY, NYC and PA did not participate in this year’s survey.CA’s, CT’s and SC’s responses are from 2015.OK’s responses are from 2014.

2 A trust is subject to income tax as a resident trust based on the state law governing the trust.3 A trust is subject to income tax as a resident trust based on the location where the trust is administered.4 A trust is subject to income tax as a resident trust based on the domicile/residency of the decedent whose will created the tes-

tamentary trust.5 A trust is subject to income tax as a resident trust based on the domicile/residency of the trustor who created the inter vivos

trust.6 A trust is subject to income tax as a resident trust based on the domicile/residency of the trustee.7 A trust is subject to income tax as a resident trust based on the domicile/residency of the beneficiary.8 A trust is subject to income tax as a resident trust based on the situs of the trust.9 A resident trust is subject to income tax on its worldwide income.10 A resident trust is subject to income tax on its state–source income only.11 AL: Alabama interprets nexus on a case by case basis and to the fullest extent allowable by the U.S. Constitution.12 AZ: A resident trust is a trust where the trustee is an Arizona resident. A resident trust or estate is taxable on all income. A

nonresident trust or estate is taxable only its Arizona sourced income.13 AZ: Where the trust is administered is relevant if the trust is managed by a corporate trustee.14 AZ: The situs of the trust is relevant in the case of a nonresident trust.15 CA: Situs of the trust is defined in CA as the state where the trustees and beneficiaries reside.16 CA: The entire taxable income of a trust is taxable in CA if the trustee or beneficiary resides in California. If there are mul-

tiple fiduciaries or beneficiaries residing in and out of CA, the State will tax all CA–source income and a portion of the remainingincome based on the number of resident fiduciaries and beneficiaries.

17 CA: Id.

SURVEY RESULTS (Vol. 23, No. 9) S-19



State1Governing

law2



fortestamentary

trust4


vivostrust5



Trustsitus8

Worldwideincome9


District of Columbia Yes18 No19 No20 No21 No22 No23 No24 Yes25 No26

Georgia No Yes No No Yes No Yes Depends27 Depends28

Hawaii No Yes29 No No Yes30 No No31 Yes32 No33

Idaho Depends Depends Depends Depends Depends Depends Depends Depends Depends

Illinois No No Yes Yes No No No Yes No

Indiana Yes Yes No No No No Yes Yes No

Iowa No Yes Yes34 No Yes35 No Yes Yes36 No

Kansas No Yes37 No No No No NoNo

ResponseNo

Response

Louisiana Yes Yes Yes No No No Yes Yes No

Maine38No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

18 DC: See DC Code §47–1809.01 (2015). (1) Resident estates or trusts or (2) nonresident estates or trusts.19 DC: See §47-1809.02 and §47-1809.03.20 DC: See DC Code §47–1809.01 (2015). (1) Resident estates or trusts or (2) nonresident estates or trusts.21 DC: Id.22 DC: Id.23 DC: Id.24 DC: Id.25 DC: See DC Code §47–1809.03. Taxes imposed by §§47–1806.01 to 47–1806.06 upon residents shall apply to the income of

resident estates, and income from any kind of property held in resident trusts, including: (1) Income accumulated in trust for thebenefit of unborn or unascertained person or persons with contingent interest, and income accumulated or held for future distribu-tion under the terms of the will or trust; (2) income that is to be distributed currently by the fiduciary to the beneficiaries .... (3) in-come received by estates of deceased persons during the period of administration or settlement of estate and (4) income that canbe distributed to the beneficiaries or accumulated. See DC Code §47–1809.03 (2015).

26 DC: See §47–1809.03.27 GA: See O.C.G.A. §48–7–22(a).28 GA: Id.29 HI: Resident trust is defined at §18–235–1.17, HAR.30 HI: Id.31 HI: Situs is relevant to taxability of nonresident trusts but not to resident status. See §18–235–4–08 & –1.17, HAR.32 HI: Resident trusts taxable on all income, see §18–235–4–06, HAR.33 HI: Id.34 IA: This answer is true until the point when court jurisdiction is terminated.35 IA: Residency is one of the factors considered in determining situs. It may be determinative, depending on the other facts.36 IA: All income subject to federal tax is generally subject to Iowa income tax. But see Iowa Admin. Code r. 701––89.8(11)(b)

for an explanation of the credit for tax paid to another state.37 KS: See K.S.A. 79–32,109(d).

S-20 (Vol. 23, No. 9) SURVEY RESULTS



State1Governing

law2



fortestamentary

trust4


vivostrust5



Trustsitus8

Worldwideincome9


Maryland39 No Yes Yes Yes40 No41 No No Yes No

Massachusetts 42 Yes Depends Yes Yes Depends No Depends Yes No

Michigan No Yes43 Yes44 Yes45 Yes46 Yes47 Yes48 Yes49 No50

Minnesota No51 Yes52 Yes Yes Yes53 No Yes54 Yes55 Yes56

Mississippi Yes Yes Yes Yes Yes No Yes No Yes

Missouri Yes No Yes Yes No Yes Yes Yes No

Montana Yes Yes Yes Yes Yes Yes Yes Yes No

Nebraska No No Yes Yes No No No Yes57 No

New Jersey No No Yes58 Yes No No No Yes No

New Mexico Yes Yes Yes Yes Yes No Yes Yes Yes

39 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (See Tax–General Section10–101(k)(1)(iii)).

40 MD: A trust is a Maryland resident trust if the creator/grantor is currently a resident of Maryland.41 MD: A trust is a resident of Maryland if it is principally administered in Maryland. Generally, a trust is principally adminis-

tered in the state where the trustee is a resident, but that is not always the case. It depends on the facts & circumstances.42 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-

Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a. Testamentary Trust—a trustunder the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created during life of the grantor; is sub-ject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least one trustee, if more than 1, mustbe a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been a Mass resident at the timethe trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during any part of the year for whichthe income is computed; or the grantor or at least one of them, died a Mass resident.

43 MI: Under MCL 206.18(1)(c), a resident trust is ‘‘any trust created by will of a decedent who at his death was domiciled in this state and any trustcreated by, or consisting of property of, a person domiciled in this state, at the time the trust becomes irrevocable.’’ A nonresident trust is defined as anytrust that does not meet the definition of a resident trust and is subject to tax only on Michigan-sourced income. See MCL 206.14(3); MCL 206.110(2). Atrust that meets the definition of a resident trust may nonetheless be considered a nonresident trust if all of the following are true:the trustee is not a Michigan resident, the trust assets are not held, located or administered in Michigan and all of the beneficiariesare nonresidents. See Blue v. Michigan Department of Treasury, 185 Mich App 406, 462 NW2d 762 (1990).

44 MI: Id.45 MI: Id.46 MI: Id.47 MI: Id.48 MI: Id.49 MI: Id.50 MI: Id.51 MN: Taxation of a trust is based on state tax law, not state laws governing the organization of trust.52 MN: A resident trust is subject to tax in Minnesota when at least two of the following are present; a) trustees investment de-

cisions are made in Minnesota, b) Trustees distribution of trust income and principal decisions are made in Minnesota, c) booksand records of the trust are located in Minnesota.

53 MN: Id.54 MN: Id.55 MN: The trust income is subject to tax in the state when the income would be subject to tax when recognized by an individual

or a business.56 MN: Id.57 NE: A resident trust is subject to Nebraska tax based on Federal Taxable Income.58 NJ: See Publication GIT–12 Page 2 (NJ Tax Nexus).




State1Governing

law2



fortestamentary

trust4


vivostrust5



Trustsitus8

Worldwideincome9


North Carolina No No No No No Yes No Yes59 Yes60

North Dakota Yes Yes Yes Yes Yes Yes Yes Yes No

Ohio61 No No Yes Yes No Yes NoNot

ApplicableNot

Applicable

Oklahoma Yes No Yes Yes No No Yes Yes Yes

Oregon Yes Yes No No Yes No Yes Yes No

Rhode Island Yes No Yes Yes No Yes No Yes No

South Carolina No Yes No No No No No Yes No

Tennessee No62 Yes No No YesNo

Response63 Yes Yes64 No65

Utah66 Yes Yes Yes No Yes67 No No68 Yes69 No70

Vermont No No Yes Yes No No No Yes No

Virginia Yes Yes Yes Yes Yes Yes Yes Yes71 No72

59 NC: North Carolina law does not use the term ‘‘resident trust.’’ For income not distributed by the trust, the tax is computedon (1) any taxable income that is for the benefit of a resident of North Carolina and (2) any taxable income that is for the benefit ofa nonresident of North Carolina to the extent that the income (i) is derived from North Carolina sources and is attributable to theownership of any interest in real or tangible personal property in this State or (ii) is derived from a business, trade, profession oroccupation carried on in this State.

60 NC: Id.61 OH: ORC 5747.01(I)(3) defines ‘‘resident’’ for Ohio trust purposes.62 TN: Under TCA §35–15–108, a trust may be governed by TN law but have its principal place of administration in another state.63 TN: Nonresident trusts with beneficiaries in Tennessee are not required to file TN Hall Income Tax returns on behalf on their

TN beneficiaries. However, nonresident trusts shall provide to each TN beneficiary a sworn statement showing the beneficiary’s TNtaxable income arising from the trust.

64 TN: Trustees subject to the Hall Income Tax only need to file returns and pay tax on taxable income received for the benefitof TN residents. With the exception of executors and administrators a decedant’s estate, trustees and other fiduciaries subject to theHall Income Tax are not required to pay Hall tax on income received on behalf of nonresident beneficiaries.

65 TN: Trustees subject to the Hall Income Tax only need to file returns and pay tax on taxable income received for the benefitof TN residents. With the exception of executors and administrators a decedant’s estate, trustees and other fiduciaries subject to theHall Income Tax are not required to pay Hall tax on income received on behalf of nonresident beneficiaries. Persons subject to theHall Income Tax must pay tax on all taxable dividend and interest income from all sources. Whether or not a resident trust mustreport and pay Hall income tax on taxable dividend and interest income depends on whether the beneficiary of such income is or isnot a Tennessee resident. See TENN. CODE ANN. §67–2–110 (2013).

66 UT: Pursuant to 75–7–103(1)(i), ‘‘Resident estate’’ or ‘‘resident trust’’ means: (i) an estate of a decedent who at death was do-miciled in this state; (ii) a trust, or a portion of a trust, consisting of property transferred by will of a decedent who at his death wasdomiciled in this state; or (iii) a trust administered in this state.

67 UT: The domicile/residency of the trustee establishes a rebuttable presumption that the trust is being administered in Utahwhich would create nexus as a resident trust.

68 UT: Mere presence of trust assets within the state of Utah does not make the trust a resident trust. However, under 59-10-136(3) it may be factor for consideration of nexus so long as a ‘‘major portion’’ of trust administration does not occur in anotherstate (see §75-7-204).

69 UT: While a Utah resident trust is subject to income tax on its worldwide income, a nonresident trust is only subject to Utahtax on its Utah source income. If a Resident Trust is subject to taxation on worldwide income the Trust may qualify for a credit fortaxes paid to another state if the other states requires taxation on income sourced to that state.

70 UT: Id.71 VA: The Virginia taxable income of a resident trust is its federal taxable income, subject to the Virginia fiduciary adjustment.

See Va. Code §§58.1–360 and 58.1–361. A nonresident trust is also subject to tax on any income or gain derived from Virginiasources if it was required to file a federal income tax return. See Va. Code §§58.1–362 and 58.1–363.

72 VA: Id.




State1Governing

law2



fortestamentary

trust4


vivostrust5



Trustsitus8

Worldwideincome9


West Virginia Yes Yes Yes Yes Yes Yes Yes No Yes73

Wisconsin Yes Yes74 Yes75 No No No Yes Yes No

73 WV: See W.Va. Code §11–21–18 and WV Legislative Rule 110CSR21–18.74 WI: Trusts that were irrevocable prior to 10/29/99 are resident where they are administered. Trusts that are created irrevo-

cable or become irrevocable on or after 10/29/99 are resident where the grantor was domiciled when the trust was funded.75 WI: Id.



Constitutional Limitations on Taxation of Trusts

State1 Applies Quill2Has binding

judicial precedent3

Alabama4No

ResponseNo

Response

Arizona5 No No

Arkansas No No

California Yes Yes6

Connecticut7No

ResponseNo

Response

District of Columbia8 No Yes

Georgia No No

Hawaii Yes9 No

Idaho No No

Illinois10 No Yes

Indiana No No

Iowa NoNo

Response

Kansas11 No No

Louisiana No No

Maine12No

ResponseNo

Response



2 Your state applies Quill (i.e., requires that a trust have a physical presence in the state in order to create nexus) when deter-mining whether a trust is subject to taxation as a resident trust.

3 Your state has binding judicial precedent addressing the constitutional limitations placed on your state’s ability to tax a trustas a resident trust.

4 AL: Alabama interprets nexus on a case by case basis and to the fullest extent allowable by the U.S. Constitution.5 AZ: A resident trust is a trust where the trustee is an Arizona resident. A resident trust is taxable on all of its income. A non-

resident trust is taxable only on its Arizona sourced income.6 CA: See McCulloch v. Franchise Tax Board (1964) 61 Cal. 2d 186 (California taxes the trust on that portion of the annual in-

come that the trust holds for eventual distribution to a California resident beneficiary.) Please note that the California legislaturedid respond to the McCulloch case by amending Rev. & Tax. Code section 17742 to state that a trust would be taxed based on theresidence only of its noncontingent beneficiaries.

7 CT: See Chase Manhattan Bank v. Gavin, 249 Conn. 172 (1999).8 DC: See 689 A.2d 539, District of Columbia Court of Appeals. District of Columbia, Appellant, v. The Chase Manhatan Bank,

Appellee.9 HI: See §236D-4 (c)(1), (2), (3), HRS.10 IL: See Linn v. DOR, 2 NE3d 1203 (2013).11 KS: See K.S.A. 79-32, 109(d).12 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income

of the trust. A Maine resident trust is a trust created by a person, or by will of a decedent, who at death was domiciled in Maine. Allother trusts are considered nonresident trusts. A Maine income tax return must be filed if the trust has: (a) Maine taxable income;(b) gross income exceeding $10,000 if a resident trust or a nonresident trust with Maine-source income—even if the trust does not




judicial precedent3

Maryland13 No No

Massachusetts14 No No

Michigan No Yes15

Minnesota No No

Mississippi No No

Missouri No No

Montana No No

Nebraska No No

New Jersey No Yes16

New Mexico No No

North Carolina No No

North Dakota No No

Ohio No No

OklahomaNo

ResponseNo

Response

Oregon Yes No

Rhode Island No No

South CarolinaNo

ResponseNo

Response

Tennessee No No

Utah No17 No

incur a Maine income tax liability; or (c) a Maine tax liability (including any tax credit recapture amount). The Maine taxable in-come of a resident trust is equal to the federal taxable income of the trust, plus or minus the fiduciary adjustment (income modifi-cations). The Maine taxable income of a nonresident trust is equal to the trust’s share of distributable net income derived fromMaine sources, plus or minus the fiduciary adjustment. The Maine-source income of a nonresident trust is determined in the samemanner as the Maine-source income is determined for a nonresident individual. See 36 M.R.S. §§5102(3) & (4), 5142, 5163-5176 and5220(3) & (4). See also Maine Rule 806.

13 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax-General Section 10-101(k)(1)(iii)).

14 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a. Testamentary Trust—a trustunder the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created during life of the grantor; is sub-ject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least one trustee, if more than 1, mustbe a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been a Mass resident at the timethe trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during any part of the year for whichthe income is computed; or the grantor or at least one of them, died a Mass resident.

15 MI: See Blue v. Michigan Dept. of Treasury, 185 Mich App 406, 462 NW2d 762 (1990). Under MCL 206.18(1)(c) there is nexuswith the state of Michigan when a trust created by will becomes irrevocable at the death of a decedent who was domiciled in Michi-gan at the time of his death. In addition, a trust that meets the definition of a resident trust may nonetheless be considered a non-resident trust if all of the following are true: the trustee is not a Michigan resident, the trust assets are not held, located or admin-istered in Michigan and all of the beneficiaries are nonresidents. See Blue v. Michigan Department of Treasury, 185 Mich App 406,462 NW2d 762 (1990).

16 NJ: See Potter v. Taxation Div. Dir., 5 N.J. Tax 399 (Tax Ct. 1983); Pennoyer v. Taxation Div. Dir., 5 N.J. Tax 386 (Tax Ct.1983); Residuary Trust A U/W/O Kassner v. Director, Div. of Taxation, 2015 N.J. Tax LEXIS 11 (App.Div. May 28, 2015).

17 UT: The ‘‘Physical presence’’ requirement as defined in Quill is limited to Sales and Use taxation. According to Utah Code§75-7-103, a trust will be perpetually a ‘‘resident trust’’ if the grantor of a testamentary trust was domiciled in Utah at death.




judicial precedent3

Vermont Yes No

Virginia No18 No

West Virginia No No

Wisconsin19 No No

18 VA: A sufficient nexus standard is applied to determine whether Virginia may impose tax upon the trust. See Public Document(‘‘P.D.’’) No. 93-189 (August 26, 1993). The standard examines whether the persons (i.e., the grantor, trustees, beneficiaries) and/orproperty associated with a trust receive any benefit or protection from Virginia law. Id. Note that the examination of the relation-ship between a trust and Virginia is continuous and ongoing. Id.

19 WI: See Section 71.14(2), (3), and (3m), 71.17(1), and 71.04(1)(b), Wis. Stats.



Nonresident & Part-year Resident Trusts

Nonresidenttrusts taxed on: Part-year trusts taxed as:

State1

Nonresidenttrusts

subjectto tax2

State-sourceincomeonly3 Other4

Trusts taxedas part-yearresidents5

Nonresidentfor entire

year6

Residentfor entire

year7

Residentfor portionof year8

Alabama9No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona Yes Yes No NoNot

ApplicableNot

ApplicableNot

Applicable

Arkansas Yes Yes No NoNot

ApplicableNot

ApplicableNot

Applicable

CaliforniaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

ConnecticutNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia10 DependsNot

ApplicableNot

Applicable Yes No No Yes

Georgia Depends11Not

Applicable12Not

Applicable13 Depends14Not

Applicable15Not

Applicable16Not

Applicable17

Hawaii Yes Yes No Yes No No Yes

Idaho Depends Yes No Yes No No Yes

Illinois Yes Yes No NoNot

ApplicableNot

ApplicableNot

Applicable

Indiana Yes Yes No Yes No No Yes

Iowa18 YesNo

Response19 Yes Yes No20 No Yes

1 The questions in this chart are all appearing for the first time in 2016. As a result, none of the responses are in bold.Depends indicates that the respondent’s answer would depend on the facts and circumstances.AK, FL, NV, SD, TX, WA and WY do not impose an individual income tax.NH does not subject trusts to its income and dividends tax.CO, DE, KY, NY, NYC and PA did not participate in this year’s survey.

2 Are nonresident trusts subject to taxation in your state?3 If ‘‘yes,’’ are nonresident trusts taxed on their state-source income only?4 If ‘‘yes,’’ are nonresident trusts taxed on something other than their state-source income?5 Can trusts be subject to taxation as part-year residents in your state?6 If ‘‘yes,’’ are part-year resident trusts taxed as nonresident trusts for the entire year?7 If ‘‘yes,’’ are part-year resident trusts taxed as resident trusts for the entire year?8 If ‘‘yes,’’ are part-year resident trusts taxed as resident trusts only for the portion of the year that the trust was a resident?9 AL: Alabama interprets nexus on a case by case basis and to the fullest extent allowable by the U.S. Constitution.10 DC: See §47-1809.01 (2016). It depends on residency of the decedent at the time of his/her death. If the deceased was a DC

resident at the time of death, then his or her esate is a DC resident estate.11 GA: See O.C.G.A. §48-7-22.12 GA: Id.13 GA: Id.14 GA: See O.C.G.A. §§48-7-22 and 48-7-20(d).15 GA: Id.16 GA: Id.17 GA: Id.18 IA: In general, Iowa Code section 422.8(3) provides that the taxable income of resident and nonresident trusts shall be allo-

cated in the same manner as individuals.19 IA: All income subject to federal tax is generally subject to Iowa income tax. But see Iowa Admin. Code r. 701–89.8(11)(b) for

an explanation of the credit for tax paid to another state.20 IA: A part-year resident trust is treated similarly to a nonresident or part-year resident for Iowa income tax purposes. See Iowa

Admin. Code r. 701–89.3(3) for further explanation.




State1

Nonresidenttrusts

subjectto tax2




year6

Residentfor entire

year7


Kansas Yes YesNo

Response Yes Depends21 Depends22 Depends23

Louisiana Yes Yes No Yes No No Yes

Maine YesNo

Response24No

Response25No

Response26No

Response27No

Response28No

Response29

Maryland30 Yes Yes No Yes Yes Yes No

Massachusetts31 Depends Yes No Yes No No Yes

Michigan32 Yes Yes No NoNot

ApplicableNot

ApplicableNot

Applicable

Minnesota Yes No Yes NoNot

ApplicableNot

ApplicableNot

Applicable

Mississippi Yes Yes No Yes No No Yes

Missouri Yes33 No Yes34 Yes Yes35 Yes36 No

21 KS: Depends on facts of the particular situation.22 KS: Id.23 KS: Id.24 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income

of the trust. A Maine resident trust is a trust created by a person, or by will of a decedent, who at death was domiciled in Maine. Allother trusts are considered nonresident trusts. A Maine income tax return must be filed if the trust has: (a) Maine taxable income;(b) gross income exceeding $10,000 if a resident trust or a nonresident trust with Maine-source income—even if the trust does notincur a Maine income tax liability; or (c) a Maine tax liability (including any tax credit recapture amount). The Maine taxable in-come of a resident trust is equal to the federal taxable income of the trust, plus or minus the fiduciary adjustment (income modifi-cations). The Maine taxable income of a nonresident trust is equal to the trust’s share of distributable net income derived fromMaine sources, plus or minus the fiduciary adjustment. The Maine-source income of a nonresident trust is determined in the samemanner as the Maine-source income is determined for a nonresident individual. See 36 M.R.S. §§5102(3) & (4), 5142, 5163-5176 and5220(3) & (4). See also Maine Rule 806.

25 ME: Id.26 ME: Id.27 ME: Id.28 ME: Id.29 ME: Id.30 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax-General Section 10-

101(k)(1)(iii)). A fiduciary is considered a resident of Maryland if: 1) the trust is principally administered in Maryland; 2) the cre-ator or grantor of the trust is a current resident of Maryland; or 3) the trust was created, or consists of property transferred, by thewill of a decedent who was domiciled in Maryland on the date of the decedent’s death. See Tax-General Article of the AnnotatedCode of Maryland (‘‘TG’’) §10-101(k)(1)(iii). A nonresident fiduciary means an individual who is not a resident fiduciary. See TG§10-101(j).

31 MA: See 830 CMR 62.10.1. Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirementsmust be met: 1. Non-Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a. Testa-mentary Trust—a trust under the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created during lifeof the grantor; is subject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least one trustee, ifmore than 1, must be a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been a Massresident at the time the trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during any part ofthe year for which the income is computed; or the grantor or at least one of them, died a Mass resident.

32 MI: Under MCL 206.110, the following income of nonresident trusts is subject to tax in Michigan: 1) Income earned, received,or acquired in Michigan; 2) Income from personal services performed in Michigan; 3) Income from real or tangible personal prop-erty located in Michigan; and 4) Income, including interest, dividend, and other portfolio income, from a business, trade, profession,or occupation conducted in Michigan.

33 MO: If the Missouri source income of the Trust is $600 or greater, the Trust is subject to taxation.34 MO: The Trust will be taxed on the Missouri source income only.35 MO: The residency of the Trust is determined as of December 31st.36 MO: Id.




State1

Nonresidenttrusts

subjectto tax2




year6

Residentfor entire

year7


Montana Yes Yes No Yes37 No38 No39 No40

Nebraska Yes Yes No NoNot

ApplicableNot

ApplicableNot

Applicable

New Jersey41 Yes Yes No Yes No No Yes

New Mexico Yes42 Yes43 Yes44 Yes45 Yes No No

North Carolina Yes46 Yes47 Yes48No

Response49Not

ApplicableNot

ApplicableNot

Applicable

North Dakota Yes Yes No NoNot

ApplicableNot

ApplicableNot

Applicable

Ohio Yes YesNot

Applicable Yes No No Yes

OklahomaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Oregon Yes Yes No Yes No No Yes

Rhode Island50 Yes No Yes NoNot

ApplicableNot

ApplicableNot

Applicable

South CarolinaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

TennesseeNo

Response51Not

ApplicableNot

Applicable Yes No Yes No

Utah Yes Yes No Yes No No Yes

Vermont Yes Yes No Yes No No Yes

Virginia Yes Yes No NoNot

ApplicableNot

ApplicableNot

Applicable

West Virginia Yes52 Yes No Yes Yes No No

Wisconsin Yes Yes No Yes No No Yes

37 MT: Part-year trusts are not taxed on their worldwide income. A ratio of their Montana source income over their everywhereincome is applied to their Montana tax. For the part of the year they are resident trusts, their montana source income includes theincome that is sourced to Montana by virtue of being resident trusts (e.g. financial interests).

38 MT: Id.39 MT: Id.40 MT: Id.41 NJ: See publication GIT-12, Pages 2, 4, 6. See Form NJ-1041, Page 1 (Nonresident estates and trusts).42 NM: Please refer to Section 7-2-3 NMSA 1978, Regulation 3.3.3.7 NMAC.43 NM: Id.44 NM: Id.45 NM: Id.46 NC: For income not distributed by the trust, the tax is computed on (1) any taxable income that is for the benefit of a resident

of North Carolina and (2) any taxable income that is for the benefit of a nonresident of North Carolina to the extent that the income(i) is derived from North Carolina sources and is attributable to the ownership of any interest in real or tangible personal propertyin this State or (ii) is derived from a business, trade, profession or occupation carried on in this State.

47 NC: Id.48 NC: Id.49 NC: North Carolina does not use the term ‘‘part-year resident trust.’’ The taxation of the trust can be impacted by a benefi-

ciary moving into or out of North Carolina during the year.50 RI: There is an allocation of income by RI source Income to the total income and applying the percentage to the total income.51 TN: Nonresident trusts are not subject to taxation, but the Hall income tax applies to trust income received by beneficiaries in

Tennessee.52 WV: See 110CSR21.7.1.5.1.



Credit for Taxes Paid to Other States

State1

Allows resident trustto claim credit instates where it’s

taxed as resident2


taxed as nonresident3

Allows nonresidenttrust to claim credit in

states where it’staxed as resident4


states where it’staxed as nonresident5

Alabama6No

ResponseNo

ResponseNo

ResponseNo

Response

Arizona7 Yes No No No

Arkansas Yes Yes No No

CaliforniaNo

ResponseNo

ResponseNo

ResponseNo

Response

ConnecticutNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia8 Yes No No No

Georgia9 Depends Yes No No

Hawaii Yes10 Yes11 No No

Idaho Depends Yes No No

Illinois Yes Yes No No

Indiana Yes Yes No12 No

Iowa Yes13 Yes14No

ResponseNo

Response

Kansas15 Yes Yes No No

Louisiana Yes16 Yes17 No No

1 The questions in this chart are all appearing for the first time in 2016. As a result, none of the responses are in bold.Depends indicates that the respondent’s answer would depend on the facts and circumstances.AK, FL, NV, SD, TX, WA and WY do not impose an individual income tax.NH does not subject trusts to its income and dividends tax.CO, DE, KY, NY, NYC and PA did not participate in this year’s survey.

2 Your state allows a resident trust to claim a credit for taxes paid to other states in which it is taxed as a resident trust.3 Your state allows a resident trust to claim a credit for taxes paid to other states in which it is taxed as a nonresident trust.4 Your state allows a nonresident trust to claim a credit for taxes paid to other states in which it is taxed as a resident trust.5 Your state allows a nonresident trust to claim a credit for taxes paid to other states in which it is taxed as a nonresident trust.6 AL: Alabama interprets nexus on a case by case basis and to the fullest extent allowable by the U.S. Constitution.7 AZ: See A.R.S. 43-1381 for more information.8 DC: Credit for taxes paid to other states. All tax amounts paid to other states that would be deductible for DC tax purposes are

to be added. In order to be deductible, taxes paid to other states must be fiduciary income tax paid to another while a District resi-dent. Additionally, the tax paid must be on income that is of a kind taxable by the District.

9 GA: See O.C.G.A. §§48-7-20(d) and 48-7-28. Only RESIDENTS are allowed reciprocity.10 HI: See §18-235-4-06, HAR; §235-55, HRS; §18-235-55, HAR.11 HI: Id.12 IN: A credit my be permitted if the resident state permits credits for nonresident trusts (i.e., ‘‘reverse credit’’ states).13 IA: See Iowa Admin. Code r. 701-89.8(11)(b) for an explanation of the credit paid to another state for resident trusts.14 IA: Id.15 KS: See K.S.A. 79–32,111.16 LA: The credit is allowed only if the other state provides a similar credit for Louisiana income taxes paid on income derived

from property located in, or from services rendered in, or from business transacted in Louisiana. The credit is not allowed for in-come taxes paid to a state that allows a nonresident trust a credit against the income taxes imposed by that state for taxes paid orpayable to the state of residence.

17 LA: Id.



State1


taxed as resident2







Maine18 Yes Yes No No

Maryland19 No Yes No No

Massachusetts20 Depends Yes No No

Michigan21 Yes Yes No No

Minnesota Yes Yes No No

Mississippi Yes Yes Yes22 Yes23

Missouri Yes Yes No No

Montana No Yes No No

Nebraska Yes Yes No No

New Jersey24 Yes Yes No No

New Mexico Yes Yes No No

North Carolina25No

ResponseNo

ResponseNo

ResponseNo

Response

North Dakota Yes Yes No No

Ohio26 Yes Yes No No

OklahomaNo

ResponseNo

ResponseNo

ResponseNo

Response

18 ME: A Maine resident trust may claim a credit against Maine income tax for income tax paid to another jurisdiction if: 1) Theother jurisdiction is another state, a political subdivision thereof, the District of Columbia, Canadian Province or any political sub-division of a foreign country that is like a state of the United States; 2) The tax paid to the other jurisdiction is directly related tothe income received during the tax year covered by the Maine return; and 3) the income taxed by the other jurisdiction is derivedfrom sources in that jurisdiction.


20 MA: See generally, DD 08–6. Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following require-ments must be met: 1. Non-Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a.Testamentary Trust—a trust under the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created dur-ing life of the grantor; is subject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least onetrustee, if more than 1, must be a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been aMass resident at the time the trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during anypart of the year for which the income is computed; or the grantor or at least one of them, died a Mass resident.

21 MI: Under MCL 206.255(1), resident trusts may claim a credit for taxes paid to another state on income also subject to tax inMichigan.

22 MS: A nonresident trust is only allowed to claim credit for taxes paid to other states if the Mississippi income has been taxedby another state to avoid double taxation. If the nonresident trust pays taxes on non-Mississippi income to another state, then thereis no credit for taxes paid to other states because the non-Mississippi income isn’t being taxed by Mississippi.

23 MS: Id.24 NJ: See publication GIT-3B, Page 8: A resident estate or trust with income from sources outside New Jersey that is subject to

tax both by New Jersey and by another jurisdiction outside New Jersey for the same year may be eligible to claim a credit againstits New Jersey gross income tax.

25 NC: North Carolina does not use the terms ‘‘resident trust’’ or ‘‘nonresident trust.’’ G.S. 105-160.4(a) authorizes a trust that isrequired to pay NC income tax to claim a credit for taxes the trust pays to another state or country on income from sources withinthat state or country.

26 OH: See R.C. 5747.02(D).



State1


taxed as resident2







Oregon Yes27 Yes28 Yes29 No

Rhode Island Yes Yes No No

South CarolinaNo

ResponseNo

ResponseNo

ResponseNo

Response

Tennessee No No No No

Utah30 Yes Yes No No

Vermont Yes Yes No No

VirginiaNot

Applicable31Not

Applicable32 Yes33 No

West Virginia34 No No Yes No

Wisconsin Yes Yes No35 No36

27 OR: Not allowed if the other state is Arizona, California, Indiana, or Virginia.28 OR: Id.29 OR: Only allowed if the trust is a resident of Arizona, California, Indiana, or Virginia.30 UT: See 59-10-201 Taxation of resident trusts and estates. (1) Except as provided in Subsection (2), a tax determined in accor-

dance with the rate prescribed by Subsection 59-10-104(2)(b) is imposed for each taxable year on the state taxable income of eachresident estate or trust. (2) The following are not subject to a tax imposed by this part: (a) a resident estate or trust that is not re-quired to file a federal income tax return for estates and trusts for the taxable year; or (b) a resident trust taxed as a corporation.(3) A resident estate or trust shall be allowed the credit provided in Section 59-10-1003, relating to an income tax imposed by an-other state, except that the limitation shall be computed by reference to the taxable income of the estate or trust. See 59-10-1003Tax credit for tax paid by individual to another state. (1) Except as provided in Subsection (2), a claimant, estate, or trust may claima nonrefundable tax credit against the tax otherwise due under this chapter equal to the amount of the tax imposed: (a) on thatclaimant, estate, or trust for the taxable year; (b) by another state of the United States, the District of Columbia, or a possession ofthe United States; and (c) on income: (i) derived from sources within that other state of the United States, District of Columbia, orpossession of the United States; and (ii) if that income is also subject to tax under this chapter. (2) A tax credit under this sectionmay only be claimed by a: (a) resident claimant; (b) resident estate; or (c) resident trust. (3) The application of the tax credit pro-vided under this section may not operate to reduce the tax payable under this chapter to an amount less than would have been pay-able were the income from the other state disregarded. (4) The tax credit provided by this section shall be computed and claimed inaccordance with rules prescribed by the commission.

31 VA: Whether a resident trust may claim a credit for taxes paid other states depends in part upon whether the income taxed bythe other state is derived from sources outside Virginia. See Va. Code §58.1-371; 58.1-332(A); P.D. 91-177. To the extent such in-come is derived from sources outside Virginia and assuming that the other requirements of the tax credit are met, a tax credit willbe allowed.

32 VA: Id.33 VA: However, a credit is only allowed if the laws of the other state: (i) grant a substantially similar credit to residents of Vir-

ginia subject to income tax under such laws or (ii) impose a tax upon the income of its residents derived from Virginia sources andexempt from taxation the income of residents of Virginia. See Va. Code §58.1-371; 58.1-332(B).

34 WV: See W.Va. Code §11-21-39.35 WI: A nonresident trust may claim a credit when it is a partner or shareholder in a pass-through entity that files its return on

a fiscal-year basis, but is limited to the tax paid by such entity for a period during which the trust was a Wisconsin resident. SeeSchedule OS instructions.

36 WI: Id.



Nexus–Creating Activities: Trust Administered in State (Part 1 of 4)

State1Governing

law2In–stateadmin.3

In–stateprincipaladmin.4

Accounting,bookkeeping,

sales &purchases5

Entityregistered

to dobusiness6

Remoteentity

registeredto do

business7

Remoteentity

making$500,000or more in

annualsales8

Remoteentity

makingless than$500,000in annual

sales9

Alabama10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona11 No Yes Yes Yes No No No No

Arkansas12 No No No No No No No No

California No No Depends13 Yes14 No No No No

Connecticut15 No No No No No No No No

District of Columbia Yes16 Yes17 Yes18 Yes19 Yes20 Yes21 Yes22 Yes23

Georgia No Yes Yes Yes Yes No Depends Depends



2 The trust document/will states that the governing law is that of your state.3 The trust was administered in your state at any time during the year.4 The principal administration of the trust is in your state.5 The trust accounting, bookkeeping, sales and purchases take place in your state.6 The trust is administered by an entity that is licensed, registered, authorized or certified to conduct business in your state.7 The trust is administered by an entity that has registered to do business in your state, but does not make sales or provide ser-

vices in your state and lacks a physical presence in your state.8 The trust is administered by an entity that lacks a physical presence in your state, but makes $500,000 or more in annual sales

in your state.9 The trust is administered by an entity that lacks a physical presence in your state, but makes less than $500,000 in annual sales

in your state.10 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.11 AZ: Resident trusts and estates are taxable on all income. A resident trust is a trust when at least one fiduciary is an Arizona

resident. If there is a corporate fiduciary the trust is a resident trust if the administration is in Arizona. See A.R.S. 43–1301. See ITP91–2 for the determination of residency and 43–104.19 for the definition of resident.

12 AR: See Arkansas Code 1.26–51–803. The income received by an estate or trust will be considered attributable to Arkansaswhen the estate or trust’s trustee, administrator, executor or personal representative is a resident of Arkansas. Likewise, the incomereceived by an estate or trust shall be attributable to Arkansas when the estate or trust is physically located within Arkansas.

13 CA: No, for an individual trustee; Yes for a corporate trustee. California taxes trusts based on the residence of the trustees andof non–contingent beneficiaries. The usual residency tests apply in the case of individual trustees. California will consider a corpo-rate trustee to be a resident of California if it conducts the major portion of its administration of the trust in California.

14 CA: Yes, in the case of a corporate trustee. California taxes trusts based on the residence of the trustees and of non–contingentbeneficiaries. The usual residency tests apply in the case of individual trustees. California will consider a corporate trustee to be aresident of California if it conducts the major portion of its administration of the trust in California.

15 CT: See Chase Manhattan Bank v. Gavin, 249 Conn. 172 (1999); The circumstances under which resident trusts, whether tes-tamentary or inter vivos, are subject to Connecticut income tax are set out in Conn. Gen. Stat. §12–701(a)(4).

16 DC: See §§47–1809.01 (2015) & 47–1809.02 (2015).17 DC: DC Code §47–1809.01 is ‘YES’ if is a resident trust.18 DC: Id.19 DC: Id.20 DC: Id.21 DC: Id.22 DC: Id.23 DC: Id.



State1Governing




sales &purchases5

Entityregistered

to dobusiness6

Remoteentity

registeredto do

business7

Remoteentity


annualsales8

Remoteentity


sales9

Hawaii No Yes24 Yes25 Yes26 Yes27 Yes28 No No

Idaho No No No No No No No No

Illinois Yes Yes Yes YesNo

Response29No

Response30No

Response31No

Response32

Indiana33 Yes Yes Yes No No No Yes Yes

Iowa34 No Yes Yes Yes No No No No

Kansas No Yes35 Yes36 No No No No No

Louisiana Yes No Yes Yes No No No No

Maine37No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland38 No No Yes Yes No No No No

Massachusetts39 No No No No No No No No

24 HI: Yes, if 18–235–1.17, Hawaii Administrative Rules applies.25 HI: Id.26 HI: Id.27 HI: Id.28 HI: Id.29 IL: Not enough information.30 IL: Id.31 IL: Id.32 IL: Id.33 IN: See IC 6-3-1-12 for the definition of ‘‘resident.’’34 IA: No fiduciary return must be filed unless there was taxable income of $600 or more during the accounting period.35 KS: A resident trust is any trust which is administered by the trustee in Kansas. A trust being administered outside of Kansas

is not considered a resident trust merely because the governing instrument or a law requires that the laws of Kansas be followedwith respect to interpretation or administration of the trust. All other trusts are nonresident trusts. The fiduciary of a nonresidenttrust must file a Kansas fiduciary income tax return if the trust had taxable income or gain derived from Kansas sources. Incomefrom Kansas sources includes income or gain from: 1) real or tangible personal property located within Kansas; 2) a business pro-fession or occupation carried on within Kansas; or 3) services performed within Kansas. See K.S.A. 79–32,109(d).

36 KS: Id.37 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


38 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax–General Section10–101(k)(1)(iii)). Most of these items are relevant to the principal administration determination.

39 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a. Testamentary Trust—a trustunder the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created during life of the grantor; is sub-ject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least one trustee, if more than 1, mustbe a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been a Mass resident at the timethe trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during any part of the year for whichthe income is computed; or the grantor or at least one of them, died a Mass resident. See generally, 830 CMR 62.10.1.



State1Governing




sales &purchases5

Entityregistered

to dobusiness6

Remoteentity

registeredto do

business7

Remoteentity


annualsales8

Remoteentity


sales9

Michigan40 No No No No No No No No

Minnesota No No41 No42 No43 No No No No44

Mississippi No Yes Yes Yes Yes Yes Yes Yes

Missouri Yes No No No No No No No

Montana45 Yes Yes Yes Yes No No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No No No No No

New Mexico Yes Yes Yes Yes Yes No Yes Yes

North Carolina46 No No No No No No No No

North Dakota Yes Yes Yes Yes No No Yes47 Yes48

Ohio No No No No No No No No

Oklahoma Yes No No No No No No No

Oregon Yes49 Yes50 Yes51 Yes52 Yes No No No

Rhode Island Yes No No No No No No No

South Carolina No Yes Yes Yes No No No No

Tennessee No Yes Yes Yes Yes No No No

40 MI: The location of the administration of the trust is generally not relevant for establishing residency of a trust under Michigan law. Under MCL206.18(1)(c), a trust is a resident trust when it is ‘‘created by will of a decedent who at his death was domiciled in this state and any trusted created by, orconsisting of property of, a person domiciled in this state, at the time the trust becomes irrevocable.’’ The domicile of the trustee may be considered fortreating certain resident trusts similar to nonresident trusts. See Blue v. Michigan Department of Treasury, 185 Mich App 406; 462 NW2d 762 (1990).

41 MN: A resident trust is subject to tax in Minnesota when at least two of the following are present; a) trustees investment de-cisions are made in Minnesota, b) Trustees distribution of trust income and principal decisions are made in Minnesota, c) booksand records of the trust are located in Minnesota.

42 MN: Id.43 MN: Id.44 MN: Id.45 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the BNA trust

nexus survey. The responses are not offered as and do not constitute written advice, legal advice or legal opinions of the Department of Revenue or thestate of Montana.

46 NC: North Carolina law does not use the term ‘‘resident trust.’’47 ND: Assuming sales aren’t protected under Public Law 86–272.48 ND: Id.49 OR: Assume resident trustee.50 OR: Assume ‘‘majority’’ of the administration.51 OR: Id.52 OR: Id.



State1Governing




sales &purchases5

Entityregistered

to dobusiness6

Remoteentity

registeredto do

business7

Remoteentity


annualsales8

Remoteentity


sales9

Utah53 Yes54 Yes Yes Yes Yes Yes Depends55 Depends56

Vermont No No No No No No No No

Virginia57 Yes Yes Yes Yes No58 No59 No No

West Virginia No60 No No61 No No No No No

Wisconsin No No Yes62 No No No No No

53 UT: See 75-7-108(1). Without precluding other means for establishing a sufficient connection with the designated jurisdiction,terms of a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of busi-ness is located in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the desig-nated jurisdiction.

54 UT: While not determinative, a Trust instrument that indicates that it is governed by Utah Law is persuasive evidence that thesettlor intended the trust to be administered in utah as a resident trust.

55 UT: The physical presence of the fiduciary and the annual sales amounts are not relevant if the principle place of administra-tion of the trust is in the state.

56 UT: Id.57 VA: See 23 VAC 10-115-10 and Public Document (‘‘P.D.’’) 93-189: A trust that is being administered in Virginia is a resident

trust. A trust or estate is ‘‘being administered in Virginia’’ if, for example, its assets are located in Virginia, its fiduciary is a residentof Virginia, or it is under the supervision of a Virginia court. The term ‘‘resident’’ only applies to natural persons (see Va. Code§58.1-302). A resident trust is generally subject to Virginia income taxation. However, if the only connection between Virginia andthe trust is that the grantor was domiciled in Virginia when the trust was created, there may be insufficient nexus.

58 VA: A trust is subject to Virginia’s income tax as a resident trust if it is administered in Virginia (see Va. Code §58.1–302). Inthese questions, there is no indication that the fiduciary is administering a trust in Virginia. If, however, the fiduciary was adminis-tering a trust in Virginia, then there would be sufficient nexus to subject such trust to Virginia’s fiduciary income tax.

59 VA: Id.60 WV: See W.Va. Code §44D–1–107.61 WV: See W.Va. Code §44D–1–108.62 WI: Limited. A trust that was made irrevocable and was administered in Wisconsin before October 29, 1999, is considered a

Wisconsin trust if it is administered in Wisconsin.




State1

Registeredtax

collector2

Individualor corp. trusteein business of

trust admin. withusual place of

business in-state3

Individualnot otherwise

engaged intrust admin. with

usual place ofbusiness in-state4

Discretionaryinvestmentdecisions5

Discretionarydistributiondecisions6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona8 No Yes Yes Yes Yes

Arkansas9 No No No No No

California No Yes10 No11 Depends12 Depends13

Connecticut14 No No No No No

District of Columbia15 Yes Yes Yes Yes Yes

Georgia Depends Yes Yes Yes Yes

Hawaii No Yes16 Yes17 Yes18 Yes19

Idaho No No No No No



2 The trust is administered by an entity or individual who is registered to collect taxes within your state.3 The trust fiduciary’s usual place of business is in your state, and the fiduciary is an individual or corporate trustee in the busi-

ness of administering trusts.4 The trust fiduciary’s usual place of business is in your state, and the fiduciary is an individual who is not otherwise engaged in

the business of administering trusts.5 The majority of the discretionary decisions regarding the investment of trust assets are made in your state.6 The majority of the discretionary decisions regarding the distributions of trust income and principal are made in your state.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-




10 CA: California taxes trusts based on the residence of the trustees and beneficiaries. A fiduciary’s usual place of business is afactor in determining its residence.

11 CA: No if the trustee does not reside in California—but the fact that his/her usual place of business is in California may playinto whether the individual fiduciary is a resident of California.

12 CA: No, for an individual trustee; Yes, for a corporate trustee. California taxes trusts based on the residence of the trusteesand of non-contingent beneficiaries. The usual residency tests apply in the case of individual trustees. California will consider acorporate trustee to be a resident of California if it conducts the major portion of its administration of the trust in California.

13 CA: Id.14 CT: See Chase Manhattan Bank v. Gavin, 249 Conn. 172 (1999); The circumstances under which resident trusts, whether tes-

tamentary or inter vivos, are subject to Connecticut income tax are set out in Conn. Gen. Stat. §12–701(a)(4).15 DC: DC Code §47–1809.01 is ‘YES’ if is a resident trust.16 HI: Yes, if 18–235–1.17, Hawaii Administrative Rules applies.17 HI: Id.18 HI: Id.19 HI: Id.



State1

Registeredtax

collector2



business in-state3






IllinoisNo

Response20 Yes Yes Yes Yes

Indiana21 No Yes Yes Yes Yes

Iowa22 No No No Yes Yes

Kansas No No No No No

Louisiana No No No No No

Maine23No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland24 No Yes Yes Yes Yes

Massachusetts25 No No No No No

Michigan26 No No No No No

Minnesota No No27 No No28 No29

Mississippi Yes Yes Yes Yes Yes

Missouri No No No No No

Montana30 No Yes Yes Yes Yes

20 IL: Not enough information.21 IN: See IC 6-3-1-12 for the definition of ‘‘resident.’’22 IA: No fiduciary return must be filed unless there was taxable income of $600 or more during the accounting period.23 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


24 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax–General Section10–101(k)(1)(iii)). Most of these items are relevant to the principal adminsitration determination.




28 MN: Id.29 MN: Id.30 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the

[Bloomberg] BNA trust nexus survey. The responses are not offered as and do not constitute written advice, legal advice or legal opinions of the Depart-ment of Revenue or the state of Montana.



State1

Registeredtax

collector2



business in-state3






NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No No

New Mexico Yes Yes Yes Yes Yes

North Carolina31 No No No No No

North Dakota No Yes Yes Yes Yes

Ohio No No No No No

Oklahoma No NoNo

Response No No

Oregon Yes32 Yes Yes Yes Yes

Rhode Island No No No No No

South Carolina No YesNo

Response Yes Yes

Tennessee No Yes Yes Yes Yes

Utah33 No34 Yes Yes Yes Yes

Vermont No No No No No

Virginia35 No No36 No37 Yes Yes

West Virginia No No No No No

Wisconsin No Yes38 No Yes39 No

31 NC: North Carolina law does not use the term ‘‘resident trust.’’32 OR: Assume ‘‘majority’’ of the administration.33 UT: See 75-7-108(1). Without precluding other means for establishing a sufficient connection with the designated jurisdiction,

terms of a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of busi-ness is located in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the desig-nated jurisdiction.

34 UT: An entity or individual without nexus to the state of Utah can be issued a Sales and Use Tax license or an employer with-holding license without creating nexus to the state of Utah. The issuing of these licenses is not determinative but may be persua-sive if it indicates that the trust is administered in the state of Utah.

35 VA: See 23 VAC 10–115–10 and Public Document (‘‘P.D.’’) 93–189: A trust that is being administered in Virginia is a residenttrust. A trust or estate is ‘‘being administered in Virginia’’ if, for example, its assets are located in Virginia, its fiduciary is a residentof Virginia, or it is under the supervision of a Virginia court. The term ‘‘resident’’ only applies to natural persons (see Va. Code§58.1-302). A resident trust is generally subject to Virginia income taxation. However, if the only connection between Virginia andthe trust is that the grantor was domiciled in Virginia when the trust was created, there may be insufficient nexus.

36 VA: A trust is subject to Virginia’s income tax as a resident trust if it is administered in Virginia (see Va. Code §58.1–302). Inthese questions, there is no indication that the fiduciary is administering a trust in Virginia. If, however, the fiduciary was adminis-tering a trust in Virginia, then there would be sufficient nexus to subject such trust to Virginia’s fiduciary income tax.

37 VA: Id.38 WI: Limited. A trust that was made irrevocable and was administered in Wisconsin before October 29, 1999, is considered a

Wisconsin trust if it is administered in Wisconsin.39 WI: Id.




State1

Non–discretionaryinvestment ordistributiondecisions2

Clericaladmin.duties3

Less than 1/2of committee

membersin state4

At least 1/2 ofcommitteemembersin state5

Corp. trustee is instate & member of

nationwide affiliatedgroup6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona8 Yes Yes Yes Yes Yes

Arkansas9 No No No No Yes

California No No Depends Depends Yes10


District of Columbia12 Yes Yes Yes Yes Yes

Georgia Yes Depends Depends Yes Yes

Hawaii Yes13 No No Yes14 Yes15


Illinois Yes YesNo

Response16No

Response17 Yes

Indiana18 Yes No No No No



2 The majority of the nondiscretionary decisions regarding the investment of trust assets or distributions of trust income andprincipal are made in your state.

3 The majority of the clerical administrative duties, such as writing checks, receiving correspondence, gathering information orgathering and completing forms, are performed in your state.

4 The trust has an investment or distribution committee used to make decisions regarding investment of trust assets or distribu-tions of trust income and principal, and less than one–half of the committee members are located in your state.

5 The trust has an investment or distribution committee used to make decisions regarding investment of trust assets or distribu-tions of trust income and principal, and at least one–half of the committee members are located in your state.

6 The trust assets are managed, or the investment decisions are made, by a corporate trustee located in your state which is amember of an affiliated group with members located throughout the country.

7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-merce Clauses of the U.S. Constitution.

8 AZ: Resident trusts and estates are taxable on all income. A resident trust is a trust when at least one fiduciary is an Arizonaresident. If there is a corporate fiduciary the trust is a resident trust if the administration is in Arizona. See A.R.S. 43–1301. See ITP91–2 for the determination of residency and 43–104.19 for the definition of resident.


10 CA: Yes, if the trustee conducts the major portion of its administration of the trust in California.11 CT: See Chase Manhattan Bank v. Gavin, 249 Conn. 172 (1999); The circumstances under which resident trusts, whether tes-

tamentary or inter vivos, are subject to Connecticut income tax are set out in Conn. Gen. Stat. §12–701(a)(4).12 DC: DC Code §47–1809.01 is ‘YES’ if is a resident trust.13 HI: Yes, if 18–235–1.17, Hawaii Administrative Rules applies.14 HI: Id.15 HI: Id.16 IL: Not enough information.17 IL: Id.18 IN: See IC 6-3-1-12 for the definition of ‘‘resident.’’



State1




membersin state4




Iowa19 Yes Yes No Yes Yes



Maine20No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland21 Yes Yes No Yes Yes

Massachusetts22 Depends Depends Depends Yes No


Minnesota No No24 No No No25

Mississippi Yes No Yes Yes Yes


Montana26 Yes Yes No Yes Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No Yes27


19 IA: No fiduciary return must be filed unless there was taxable income of $600 or more during the accounting period.20 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


21 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax–General Section10–101(k)(1)(iii)). Most of these items are relevant to the principal adminsitration determination.




25 MN: Id.26 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the


27 NJ: Please see Publication GIT–12 Page 2 (Institutional Trustees) http://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git12.pdf.



State1




membersin state4





North Dakota Yes Yes Yes Yes No

Ohio No No No No No

Oklahoma No No No No No

Oregon29 Yes Yes Yes Yes Yes


South Carolina No Yes Yes Yes Yes

Tennessee Yes Yes Yes Yes Yes

Utah30 Yes Yes Yes Yes Yes


Virginia31 Yes Yes No Yes Yes


Wisconsin No No No Yes32 Yes33

28 NC: North Carolina law does not use the term ‘‘resident trust.’’29 OR: Assume ‘‘majority’’ of the administration.30 UT: See 75-7-108(1). Without precluding other means for establishing a sufficient connection with the designated jurisdiction,

terms of a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of busi-ness is located in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the desig-nated jurisdiction.


32 WI: Limited. A trust that was made irrevocable and was administered in Wisconsin before October 29, 1999, is considered aWisconsin trust if it is administered in Wisconsin.

33 WI: Id.




State1Official books

& records2

In–stateagent or

custodian3

Majority offiduciary

decisions4

Corp. trustee within–state call

center5

Applies probate code’srules for determining

trust’s principalplace of admin.6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona No8 Yes9 Yes10 Yes11 Yes12

Arkansas No13 No14 Yes15 No16 Yes

California No17 No18 Yes DependsNo

Response

Connecticut No19 No20 No21 No22No

Response

District of Columbia Yes23 Yes24 Yes25 Yes26 Yes27

Georgia Yes Yes Yes Yes No



2 The official books and records of the trust, consisting of original minutes of the trustee meetings and original trust instruments,are located in your state.

3 The trustees delegate discretionary decisions regarding the investment of trust assets, trust distributions or the possession ofthe trust’s official books and records to an agent or custodian located in your state.

4 In the case of a trustee that is a corporate fiduciary engaged in interstate trust administration, the majority of fiduciary deci-sion making is made in your state.

5 The trust is administered by a corporate trustee through a call center located in your state.6 Does your state apply the rules used to determine the trust’s principal place of administration under the probate code, or other similar law governing

the creation and administration of trusts, when determining whether the trust is administered in your state for trust income tax purposes?7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-



9 AZ: Id.10 AZ: Id.11 AZ: Id.12 AZ: See A.R.S. 14-10118.13 AR: See Arkansas Code 1.26–51–803. The income received by an estate or trust will be considered attributable to Arkansas

when the estate or trust’s trustee, administrator, executor or personal representative is a resident of Arkansas. Likewise, the incomereceived by an estate or trust shall be attributable to Arkansas when the estate or trust is physically located within Arkansas.

14 AR: Id.15 AR: Id.16 AR: Id.17 CA: This may be a factor to consider in determining whether a corporate fiduciary is a California resident.18 CA: Id.19 CT: See Chase Manhattan Bank v. Gavin, 249 Conn. 172 (1999); The circumstances under which resident trusts, whether tes-

tamentary or inter vivos, are subject to Connecticut income tax are set out in Conn. Gen. Stat. §12–701(a)(4).20 CT: Id.21 CT: Id.22 CT: Id.23 DC: DC Code §47–1809.01 is ‘YES’ if is a resident trust.24 DC: Id.25 DC: Id.26 DC: Id.27 DC: D.C. SCR-PD Rule 1 states, in part, that the rules apply to proceedings in the Probate Division of the Court and are intended to provide for the

just and expeditious disposition of all such proceedings and can be cited as ‘‘SCR-PD’’: (Decedent’s estates), (Guardians of minors, conservators and trust-ees), (Intervention proceedings) and (Applicabiity of Civil Rules).




& records2

In–stateagent or

custodian3


decisions4


center5



Hawaii No Yes28 Yes29 No No


Illinois Yes Yes YesNo

Response30 No31

Indiana Yes32 Yes33 Yes34 No35 Yes

Iowa Yes36 Yes37 Yes38 No39 No

Kansas No No No No Yes


Maine40No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland41 Yes42 Yes43 Yes44 Yes45 No46

28 HI: Yes, if 18–235–1.17, Hawaii Administrative Rules applies.29 HI: Id.30 IL: Not enough information.31 IL: The Department has not issued any guidance with respect to this issue.32 IN: See IC 6-3-1-12 for the definition of ‘‘resident.’’33 IN: Id.34 IN: Id.35 IN: Id.36 IA: No fiduciary return must be filed unless there was taxable income of $600 or more during the accounting period.37 IA: Id.38 IA: Id.39 IA: Situs would depend on where the corporate trustee is located, not the call center. No fiduciary return must be filed unless

there was taxable income of $600 or more during the accounting period.40 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


41 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax–General Section10–101(k)(1)(iii)).

42 MD: Most of these items are relevant to the principal administration determination.43 MD: Id.44 MD: Id.45 MD: Id.46 MD: There is no statutory or case law definition of principal place of administration in Maryland law. Often it depends on the facts and circumstances

of the trust. However, if the majority of the decisions and actions regarding the administration of the trust are made by the fiduciary while the fiduciary is inMaryland, then the Comptroller will consider the trust to be principally administered in Maryland, making the fiduciary a resident fiduciary. As a generalrule, the trust is ‘‘principally administered’’ in Maryland if: (1) the trustee lives in Maryland; (2) the trustee’s office where he or she makes decisions re-garding the trust is located in Maryland; or (3) the majority of the trust’s assets are located in Maryland.




& records2

In–stateagent or

custodian3


decisions4


center5



Massachusetts47 No48 No49 No50 Depends51 No


Minnesota No53 No54 No55 No No

Mississippi No Yes Yes Yes No


Montana56 Yes Yes Yes No Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No Yes57 Yes58 No



North Dakota No No No NoNo

Response

Ohio No No No No No

Oklahoma No No No NoNo

Response

Oregon Yes60 Yes61 Yes Yes Yes

Rhode Island No No No NoNo

Response

South Carolina Yes Yes Yes NoNo

Response


48 MA: See generally, 830 CMR 62.10.1.49 MA: Id.50 MA: Id.51 MA: Id.52 MI: The location of the administration of the trust is generally not relevant for establishing residency of a trust under Michigan law. Under MCL

206.18(1)(c), a trust is a resident trust when it is ‘‘created by will of a decedent who at his death was domiciled in this state and any trusted created by, orconsisting of property of, a person domiciled in this state, at the time the trust becomes irrevocable.’’ The domicile of the trustee may be considered fortreating certain resident trusts similar to nonresident trusts. See Blue v. Michigan Department of Treasury, 185 Mich App 406; 462 NW2d 762 (1990).


54 MN: Id.55 MN: Id.56 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the


57 NJ: Please see Publication GIT-12 Page 2 (Institutional Trustees) http://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git12.pdf.

58 NJ: Id.59 NC: North Carolina law does not use the term ‘‘resident trust.’’60 OR: Assume ‘‘majority’’ of the administration.61 OR: Assume resident trustee. Assume ‘‘majority’’ of the administration.




& records2

In–stateagent or

custodian3


decisions4


center5



Tennessee Yes Yes Yes Yes No

Utah63 No64 Depends65 Yes Yes66 Yes67


Virginia68 No69 Yes Yes YesNot

Applicable

West Virginia No No No No Yes

Wisconsin No Yes70 Yes71 No No

63 UT: See 75-7-108(1). Without precluding other means for establishing a sufficient connection with the designated jurisdiction,terms of a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of busi-ness is located in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the desig-nated jurisdiction.

64 UT: Without more the mere presence of trust records in the State of Utah does not create nexus. However, it will be a factorin determining if the trust is being administered in the State.

65 UT: See 75-7-107(4). A trust shall be considered to be administered in this state if: (a) the trust states that this state is the placeof administration, and any administration of the trust is done in this state; or (b) the place of business where the fiduciary transactsa major portion of its administration of the trust is in this state. If the actions of the agent constitute a ‘‘major portion’’ of trust ad-ministration then the actions will create nexus as if done by the Trustee herself.

66 UT: See 75-7-1201. Foreign trustees. (1) A foreign corporate trustee is required to qualify as a foreign corporation doing busi-ness in this state if it maintains the principal place of administration of any trust within the state.

67 UT: See 75-7-107(4). A trust shall be considered to be administered in this state if: (a) the trust states that this state is the place of administration,and any administration of the trust is done in this state; or (b) the place of business where the fiduciary transacts a major portion of its administration ofthe trust is in this state. If the actions of the agent constitute a ‘‘major portion’’ of trust administration then the actions will create nexus as if done by theTrustee herself. See also 75-7-107(4) as well as 75-7-103(1)(i): 75-7-103 Definitions. (1) In this chapter: (i) ‘‘Resident estate’’ or ‘‘resident trust’’ means:(i) an estate of a decedent who at death was domiciled in this state; (ii) a trust, or a portion of a trust, consisting of property transferred by will of a dece-dent who at his death was domiciled in this state; or (iii) a trust administered in this state.


69 VA: This fact, by itself, is not sufficient to subject the trust to Virginia’s income tax, but may be a relevant factor in cases wherethe resident fiduciary is part of a committee that oversees the trust (see P.D. 02–104 and P.D. 07–164).

70 WI: Limited. A trust that was made irrevocable and was administered in Wisconsin before October 29, 1999, is considered aWisconsin trust if it is administered in Wisconsin.

71 WI: Id.



Nexus–Creating Activities: Trust Created by Will of Resident (Part 1 of 2)

State1

Domiciledin state

at death2

Lived, but notdomiciled, in

state at death3

Maintainspermanent place

of abode4

In state1 to

182 days5

In state183 daysor more6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona8 No No No No No

Arkansas No No No No No

California No Yes Yes9 No10 No11

Connecticut12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia Yes13 No14 Yes15 No16 Yes17

Georgia18No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Hawaii19 No No No No No




2 The trust was created by the will of a testator or by a decedent who was domiciled in your state as of the testator’s date ofdeath.

3 The trust was created by the will of a testator or by a decedent who lived, but was not domiciled, in your state as of the testa-tor’s date of death.

4 The trust was created by the will of a testator or by a decedent who maintained a permanent place of abode in your state in theyear of the testator’s death.

5 The trust was created by the will of a testator or by a decedent who was present in your state for less than 183 days (i.e., one to182 days) in the year of the testator’s death.

6 The trust was created by the will of a testator or by a decedent who was present in your state for 183 days or more in the yearof the testator’s death.


8 AZ: If decedent was an Arizona resident at the time of death, the estate is a resident estate. (See A.R.S. 43–1301(4)). See A.R.S.43–104.19 for the definition of resident. See ITP 91–2 regarding the determination of residency.

9 CA: Yes, if decedent was a CA resident.10 CA: California will tax a probate estate if the decedent was a California resident. The situations described in these questions

would all be factors used to determine whether the decedent was a California resident.11 CA: Id.12 CT: See Conn. Gen. Stat. §12–701 for definition of ‘‘resident’’ and ‘‘resident trust’’ and See Conn. Agencies Regs. §12–

701(a)(1)–1 for items to consider in determining whether or not an individual is domiciled in Connecticut. Generally, an individualwho is domiciled in Connecticut is also a resident individual for Connecticut income tax purposes.

13 DC: See DC Code §47–1801.04 (42) (2015); and DC Code §47–1809.01 (2015).14 DC: Unless the testator was a permanent resident. See DC Code §47–1801.04 (42) (2015).15 DC: See DC Code §47–1809.01 (2015). Yes, his trust created by his will is a resident trust. See DC Code §47–1809.01(1) (2015).

Decedent appears to have been domiciled in the District, meeting the criteria of more than 183 days presence.16 DC: Unless the testator was a permanent resident. See DC Code §47–1801.04 (42) (2015).17 DC: See DC Code §47–1809.01 (2015). Yes, his trust created by his will is a resident trust. See DC Code §47–1809.01(1) (2015).

Decedent appears to have been domiciled in the District, meeting the criteria of more than 183 days presence.18 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors

and may subject a trust to taxation if the trust was setup to avoid Georgia taxes.19 HI: If the testator/decedent was a resident on the date of death, then his/her estate will be deemed a resident estate, however,

the residence of the testator/decedent is not relevant to the resident status of a trust. See §18–235–1.17, HAR.



State1

Domiciledin state

at death2


state at death3


of abode4

In state1 to

182 days5


Illinois YesNo

Response20No

Response21No

Response22No

Response23

Indiana No No No No No

Iowa24 No Yes Yes No Yes

Kansas Yes25 No No No No

Louisiana Yes No No No No

Maine26No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland27 Yes28 No29 No30 No31 No32

Massachusetts33 Yes34 Yes Depends No No

20 IL: Not enough information.21 IL: Id.22 IL: Id.23 IL: Id.24 IA: For tax purposes, the situs of a testamentary trust is the state of the decedent’s residence at the time of death until the ju-

risdiction of the court in which the trust proceedings are pending is terminated. If, in the event of termination, the trust remainsopen, the situs would be governed by the same rules as an inter vivos trust.

25 KS: Yes, if the trust is administered in Kansas. See K.S.A. 79–32,109(d) and K.A.R. 92–12–4a. See K.S.A. 79–32,109(b).26 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income



28 MD: See Tax–General Article Section 10–101(k)(1)(iii).29 MD: No, unless the person is also domiciled in the State as of the date of death. What matters is the domicile (not residency)

of the decedent as of his date of death.30 MD: Id.31 MD: Id.32 MD: Id.33 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-


34 MA: See G.L. c. 62, s. 1(f), 830 CMR 62.5A.1(5), TIR 12–10(III), TIR 95–7 and LR 09–5.



State1

Domiciledin state

at death2


state at death3


of abode4

In state1 to

182 days5


Michigan Yes35 No36 Yes No37 Yes38

Minnesota39 Yes40 Yes Yes Yes Yes

Mississippi Yes41 No Yes Yes Yes

Missouri Yes42 No Yes Yes No

Montana43 Yes44 No Yes No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey Yes45 Yes46 No No47 No48

New Mexico Yes49 Yes Yes Yes Yes

North Carolina No No No No No

North Dakota Yes50 Yes Yes Yes Yes

Ohio Yes51 Yes Yes Yes Yes

Oklahoma Yes Yes Yes No No

Oregon52 No No No No No

Rhode Island Yes53 Yes Yes Yes Depends54

35 MI: MCL 206.18(1)(a) defines ‘‘resident’’ as ‘‘an individual domiciled in the state.’’ MCL 206.18(1)(a) defines ‘‘domicile’’ is de-fined as ‘‘a place where a person has his true, fixed and permanent home and principal establishment to which, whenever absenttherefrom he intends to return, and domicile continues until another permanent establishment is established.’’ MAC R 206.5(1) de-fines ‘‘domicile’’ as ‘‘the fixed, permanent, and principal home to which a person, wherever temporarily located, always intends toreturn.’’ Under MCL 206.18(1)(b), a resident includes any trust created by will of a decedent who at his death was domiciled in theState of Michigan. Under MCL 206.18(1)(c), nexus is created between the state and a trust ‘‘created by the will of a decedent who athis death was domiciled in this state.’’ Nexus may be created with the state, even when a testator or decedent was not domiciled in Michi-gan. Under MCL 206.18(1)(a), ‘‘if an individual lives in this state at least 183 days during the tax year or more than 1/2 the daysduring a taxable year of less than 12 months he shall be deemed a resident individual domiciled in this state.’’

36 MI: Nexus may be created with the state, even when a testator or decedent was not domiciled in Michigan. Under MCL206.18(1)(a), ‘‘if an individual lives in this state at least 183 days during the tax year or more than 1/2 the days during a taxable yearof less than 12 months he shall be deemed a resident individual domiciled in this state.’’

37 MI: Id.38 MI: Id.39 MN: This Section addresses Residents. A ‘‘Resident’’ by definition is domiciled in the state, or is domiciled outside the state

and both has a place of abode in the state and spends more than half of the year in the state.40 MN: See Minn. Stat. Section 290.01, Subds. 7 and 7a; Minn. Rule 8001.0300.41 MS: See Miss. Code Ann. Section 27-9-3 and Miss. Admin. Code Title 35.III.7 Chapter 1.42 MO: Definition of domicile: Paulson v. Dept. of Revenue, 961 S.W.2d 63, 66 (Mo. App. 1998).43 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the


44 MT: See §1-1-215, MCA; §15-30-2101, MCA; ARM 42.2.304; ARM 42.30.101.45 NJ: See N.J.S.A. 54A:1–2(m), (n), (o), and (p). See Publication GIT–6 (‘‘Part–Year’’ Residents) Page 2.46 NJ: See N.J.S.A. 54A:1–2(o)(3) & Publication GIT–12 Page 2 (NJ Tax Nexus).47 NJ: A resident trust is created by the will of a decedent who is domiciled in NJ under N.J.S.A. 54A:1–2(o).48 NJ: Id.49 NM: See Regulation 3.3.1.9(C) NMAC.50 ND: See North Dakota Administrative Code 81–03–02.1–04.51 OH: See ORC 5747.01(I)(3).52 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income

from Oregon sources, per Oregon Revised Statutes (ORS) 316.027, 316.362 and 316.282 and Oregon Administrative Rule (OAR)150–316.282.

53 RI: 44–30–5(c) defines residency for a trust, however, there is no specific definition for domicile.54 RI: Will depend on other factors.



State1

Domiciledin state

at death2


state at death3


of abode4

In state1 to

182 days5


South Carolina No No No No No

Tennessee No No No No No

Utah Yes No No55 No No

Vermont56 Yes57 No No No No

Virginia58 Yes59 No Yes Yes60 Yes61

West Virginia Yes62 No No No No

Wisconsin63 Yes64 No No No No

55 UT: Individuals with a permanent place of abode in our state are likely domiciled here, but there are exceptions.56 VT: A trust is a Vermont Trust if the decedent was domiciled in VT as of the date of his or her death. Presence, driver’s license,

and voter registration are indications of domicile but no one factor is dispositive.57 VT: See Vt. Admin. Code 1–3–102:2.58 VA: See 23 VAC 10–115–10 and Virginia Code §58.1–302: ‘‘Domicile’’ means the permanent place of residence of a taxpayer

and the place to which he intends to return even though he may actually reside elsewhere. The factors considered in determiningwhether an individual is domiciled in Virginia include his expressed intent, conduct, and all attendant circumstances, including, butnot limited to, financial independence, business pursuits, employment, income sources, residence for federal income tax purposes,marital status, residence of his parents, spouse, and children, location of his leasehold, sites of personal and real property ownedby the individual, where his motor vehicle and other personal property are registered, residence for purposes of voting, and otherfactors as may be reasonably deemed necessary to determine the person’s domicile. An individual is a resident of Virginia if he isdomiciled in Virginia at any time during the taxable year or maintained his place of abode in Virginia for more than 183 days dur-ing the taxable year. A trust is a resident trust if it was created by the will of a decedent who was domiciled in Virginia at his death.

59 VA: See Va. Code §58.1-302.60 VA: Yes, if the decedent was domiciled in Virginia.61 VA: Id.62 WV: See W.Va. Legislative Rule §110–21–7.1.2.63 WI: Wisconsin’s definition of domicile is not based on a number of days in the state or permanent place of abode.64 WI: See Section 71.01(1n), Wis. Stats.



Nexus Creating Activities: Trust Created by Will of Resident (Part 2 of 2)

Maintains permanentplace of abode and is:

Does not maintainpermanent place of

abode but is:

State1

In state1 to

182 days2


In state1 to

182 days4


Registeredto vote6

Valid driver’slicense7

Alabama8No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona9 No No No No No No

Arkansas No No No No No No

California No No No No Yes10 No11

Connecticut12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia13 Yes Yes No Yes Yes Yes

Georgia14No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Hawaii15 No No No No No No

Idaho No No No No No No



2 The trust was created by the will of a testator or by a decedent who maintained a permanent place of abode in your state andwas present in your state for less than 183 days (i.e., one to 182 days) in the year of the testator’s death.

3 The trust was created by the will of a testator or by a decedent who maintained a permanent place of abode in your state andwas present in your state for 183 days or more in the year of the testator’s death.

4 The trust was created by the will of a testator or by a decedent who was present in your state for less than 183 days (i.e., one to182 days) in the year of the testator’s death, but did not maintain a permanent place of abode in your state.

5 The trust was created by the will of a testator or by a decedent who was present in your state for 183 days or more in the yearof the testator’s death, but did not maintain a permanent place of abode in your state.

6 The trust was created by the will of a testator or by a decedent who was registered to vote in your state in the year of the tes-tator’s death.

7 The testator/decedent had a valid driver’s license issued by your state as of the date of the testator’s date of death.8 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.9 AZ: If decedent was an Arizona resident at the time of death, the estate is a resident estate. (See A.R.S. 43–1301(4)). See A.R.S.

43–104.19 for the definition of resident. See ITP 91–2 regarding the determination of residency.10 CA: California will tax a probate estate if the decedent was a California resident. The situations described in these questions

would all be factors used to determine whether the decedent was a California resident.11 CA: Id.12 CT: See Conn. Gen. Stat. §12–701 for definition of ‘‘resident’’ and ‘‘resident trust’’ and See Conn. Agencies Regs. §12–

701(a)(1)–1 for items to consider in determining whether or not an individual is domiciled in Connecticut. Generally, an individualwho is domiciled in Connecticut is also a resident individual for Connecticut income tax purposes.

13 DC: See DC Code §47–1809.01 (2015). Yes, his trust created by his will is a resident trust. See DC Code §47–1809.01(1) (2015).Decedent appears to have been domiciled in the District, meeting the criteria of more than 183 days presence.

14 GA: Georgia Generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factorsand may subject a trust to taxation if the trust was setup to avoid Georgia taxes.

15 HI: If the testator/decedent was a resident on the date of death, then his/her estate will be deemed a resident estate, however,the residence of the testator/decedent is not relevant to the resident status of a trust. See §18–235–1.17, HAR.





abode but is:

State1

In state1 to

182 days2


In state1 to

182 days4


Registeredto vote6


Illinois16No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana No No No No No No

Iowa17 Yes Yes No Yes No18 No19

Kansas No Yes20 No Yes21 No No

Louisiana No No No No No No

Maine22No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland23 No24 No25 No26 No27 Yes28 Yes29

Massachusetts30 Depends Yes Depends Yes No No

16 IL: Not enough information.17 IA: For tax purposes, the situs of a testamentary trust is the state of the decedent’s residence at the time of death until the ju-

risdiction of the court in which the trust proceedings are pending is terminated. If, in the event of termination, the trust remainsopen, the situs would be governed by the same rules as an inter vivos trust.

18 IA: The answer to [this question] presume[s] that the sole factor supporting Iowa situs is voter id and license respectively,with no other indications of residency, despite the fact that Iowa law requires residency to obtain a voter id or license.

19 IA: Id.20 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.21 KS: Id.22 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income



24 MD: No, unless the person is also domiciled in the State as of the date of death. What matters is the domicile (not residency)of the decedent as of his date of death.

25 MD: Id.26 MD: Id.27 MD: Id.28 MD: Two important criteria in determining a person’s domicile are where the person lives and where the person has a valid

driver’s license. Additional criteria used to determine a person’s domicile include home, time, items near and dear, active businessinvolvement, family connections and where the person is registered to vote. The total facts and circumstances of each case are re-viewed to determine a person’s domicile. For further information, please read the Comptroller’s Administrative Release No. 37 onDomicile and Residency, which is available at http://taxes.marylandtaxes.com/Resource_Library/Tax_Publications/Administrative_Releases/Income_and_Estate_Tax_Releases/ar_it37.pdf.

29 MD: Id.30 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-






abode but is:

State1

In state1 to

182 days2


In state1 to

182 days4


Registeredto vote6


Michigan Yes31 Yes32 No Yes33 Yes34 Yes35

Minnesota36 Yes Yes Yes37 Yes38 Yes Yes

Mississippi Yes Yes No No Yes Yes

Missouri Yes Yes No No Yes Yes

Montana39 Yes Yes No No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No40 No41 No42 No43 No44 No45

New Mexico Yes Yes Yes Yes Yes Yes

North Carolina No No No No No No

North Dakota Yes Yes Yes Yes Yes Yes

Ohio Yes Yes Yes Yes Yes Yes

Oklahoma No No No No No Yes

Oregon46 No No No No No No

Rhode Island Yes Yes Depends Yes Yes Yes

South Carolina No No No No No No

Tennessee No No No No No No

31 MI: Nexus may be created with the state, even when a testator or decedent was not domiciled in Michigan. Under MCL206.18(1)(a), ‘‘if an individual lives in this state at least 183 days during the tax year or more than 1/2 the days during a taxable yearof less than 12 months he shall be deemed a resident individual domiciled in this state.’’

32 MI: Id.33 MI: Id.34 MI: Registering to vote and obtaining a driver’s license are factors to be considered in determining a taxpayer’s residency or

domicile under MAC R 206.5(2). These may not be determinitive factors in determining domicile in every case, but it is assumed for the purpose ofthese questions that such facts are sufficient evidence of domicile of the trustor.

35 MI: Id.36 MN: This Section addresses Residents. A ‘‘Resident’’ by definition is domiciled in the state, or is domiciled outside the state

and both has a place of abode in the state and spends more than half of the year in the state.37 MN: ‘‘Yes’’ because the section is regarding a ‘‘resident’’ which indicates that other criteria is met to establish nexus.38 MN: Id.39 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the


40 NJ: Taxpayer may have a NJ domicile but we would need more facts.41 NJ: Id.42 NJ: A resident trust is created by the will of a decedent who is domiciled in NJ under N.J.S.A. 54A:1–2(o).43 NJ: Id.44 NJ: Id.45 NJ: Id.46 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income






abode but is:

State1

In state1 to

182 days2


In state1 to

182 days4


Registeredto vote6


Utah No47 Yes48 No No Yes49 No

Vermont50 No No No No No No

Virginia51 Yes Yes No52 No53 No54 No55

West Virginia No Yes56 No No No No

Wisconsin57 No No No No No58 No59

47 UT: Individuals with a permanent place of abode in our state are likely domiciled here, but there are exceptions.48 UT: Maintaining a permanent place of abode and being present in the state for 183 days establishes a rebuttable presumption

that the testator was a Utah Resident thus making the testamentary trust a resident trust.49 UT: Being registered to vote in Utah creates a rebuttable presumption that the testator was a Utah resident unless the testator

had been physically absent from the state for 761 consecutive days. See 59-10-205. Tax on nonresident estate or trust. (1) Except asprovided in Subsection (2), a tax is imposed on a nonresident estate or trust in an amount equal to the product of: (a) the nonresi-dent estate’s or trust’s state taxable income as determined under Section 59-10-204; and (b) the percentage listed in Subsection 59-10-104(2).

50 VT: A trust is a Vermont Trust if the decedent was domiciled in VT as of the date of his or her death. Presence, driver’s license,and voter registration are indications of domicile but no one factor is dispositive.

51 VA: See 23 VAC 10–115–10 and Virginia Code §58.1–302: ‘‘Domicile’’ means the permanent place of residence of a taxpayerand the place to which he intends to return even though he may actually reside elsewhere. The factors considered in determiningwhether an individual is domiciled in Virginia include his expressed intent, conduct, and all attendant circumstances, including, butnot limited to, financial independence, business pursuits, employment, income sources, residence for federal income tax purposes,marital status, residence of his parents, spouse, and children, location of his leasehold, sites of personal and real property ownedby the individual, where his motor vehicle and other personal property are registered, residence for purposes of voting, and otherfactors as may be reasonably deemed necessary to determine the person’s domicile. An individual is a resident of Virginia if he isdomiciled in Virginia at any time during the taxable year or maintained his place of abode in Virginia for more than 183 days dur-ing the taxable year. A trust is a resident trust if it was created by the will of a decedent who was domiciled in Virginia at his death.

52 VA: In Virginia, a trust is a resident trust if it was created by the will of a decedent who was domiciled in Virginia at his death.Under Va. Code §58.1–302, the term ‘‘domicile’’ is defined as ‘‘the permanent place of residence of a taxpayer and the place to whichhe intends to return even though he may actually reside elsewhere,’’ rather than the taxpayer’s ‘‘permanent place of abode.’’ If thetaxpayer was not domiciled in Virginia at his death, the fact that he was an actual resident, by itself, would not create nexus for fi-duciary income tax purposes.

53 VA: Id.54 VA: These factors are considered when determining whether an individual was domiciled in Virginia. However, these factors

are not dispositive when considered alone.55 VA: Id.56 WV: W.Va. Legislative Rule 110CSR21.7.1.1.2. requires any person who is not domiciled in West Virginia but maintains a per-

manent place of abode in WV to spend more than 183 days of the taxable year to be subject to WV’s income tax.57 WI: Wisconsin’s definition of domicile is not based on a number of days in the state or permanent place of abode.58 WI: Wisconsin may question the decedent’s domicile if one of these factors is present since both of them require a person to

make an affirmative statement that he is a resident of this state. The determination is a facts and circumstances evaluation.59 WI: Id.



Nexus–Creating Activities: Irrevocable Inter Vivos Trust Created by Resident(Part 1 of 6)

State1

Trustordomiciled

whencreated2

Holds propertyof persondomiciled

when created3

Trustordomiciled when

propertytransferred4

Trust holds propertyof person domiciled

when propertytransferred5

Trustor domiciledwhen created and


Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



California9 No No No No No

Connecticut10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia11 Yes Yes No12 Yes Yes

Georgia13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response





2 The trust was created by a trustor who was domiciled in your state at the time the trust was created.3 The trust consists of property of a person who was domiciled in your state at the time the trust was created.4 The trust was created by a trustor who was domiciled in your state at the time the property was transferred to the trust.5 The trust consists of property of a person who was domiciled in your state at the time the property was transferred to the trust.6 The trustor was domiciled in your state at the time of both the creation of the trust and the transfer of property to the trust.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-


resident. If there is a corporate fiduciary the trust is a resident trust if administration of the trust is in Arizona. See A.R.S. 43–1301.See ITP 91–2 regarding the determination of residency and A.R.S. 43–104.19 for the definition of resident.

9 CA: California does not look to the residence of the trustor for an irrevocable (non–grantor) trust. California will only look tothe residence of the grantor in taxing grantor (generally, revocable) trusts.

10 CT: See Conn. Gen. Stat. §12–701 for definition of ‘‘resident’’ and ‘‘resident trust’’ and See Conn. Agencies Regs. §12–701(a)(1)–1 for items to consider in determining whether or not an individual is domiciled in Connecticut. Generally, an individualwho is domiciled in Connecticut is also a resident individual for Connecticut income tax purposes. Conn. Gen. Stat. §12–701(a)(4)provides the following definition which is applicable to the above questions: ‘‘Resident trust or estate’’ means (A) the estate of a de-cedent who at the time of his death was a resident of this state, (B) the estate of a person who, at the time of commencement of acase under Title 11 of the United States Code, was a resident of this state, (C) a trust, or a portion of a trust, consisting of propertytransferred by will of a decedent who at the time of his death was a resident of this state, and (D) a trust, or a portion of a trust,consisting of the property of (i) a person who was a resident of this state at the time the property was transferred to the trust if thetrust was then irrevocable, (ii) a person who, if the trust was revocable at the time the property was transferred to the trust, andhas not subsequently become irrevocable, was a resident of this state at the time the property was transferred to the trust or (iii) aperson who, if the trust was revocable when the property was transferred to the trust but the trust has subsequently become irre-vocable, was a resident of this state at the time the trust became irrevocable.

11 DC: See DC Code §47–1801.04(42) (2015).12 DC: See DC Code §47-1809.07 (2015).13 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors

and may subject a trust to taxation if the trust was setup to avoid Georgia taxes.14 HI: Neither residence nor domicile of the trustor/settlor/grantor are relevant to the resident status of a trust.



State1

Trustordomiciled

whencreated2


when created3







Illinois15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Iowa No No No No No

Kansas16 Yes Yes Yes Yes Yes


Maine17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland18 No No No No No

Massachusetts19 Depends Depends Depends Depends Depends

Michigan20 Yes Yes No No Yes

Minnesota21 Yes Yes Yes Yes Yes

Mississippi22 Yes Yes Yes Yes Yes

Missouri Yes Yes Yes Yes Yes

Montana23 Yes Yes Yes Yes Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

15 IL: Not enough information. See 35 ILCS 1501(a)(20).16 KS: Yes, if the trust is administered in Kansas. See K.S.A. 79–32,109(d), K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.17 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


18 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax–General Section10–101(k)(1)(iii)). See Tax–General Article Section 10–101(k)(1)(iii)(2). A trust is a resident trust if the creator or grantor is a cur-rent resident of the State.

19 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a. Testamentary Trust—a trustunder the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created during life of the grantor; is sub-ject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least one trustee, if more than 1, mustbe a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been a Mass resident at the timethe trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during any part of the year for whichthe income is computed; or the grantor or at least one of them, died a Mass resident. See 830 CMR 62.5A.1, TIR 95–7 & 12–10, LR09–5.

20 MI: MCL 206.18(1)(a) defines ‘‘domicile’’ as ‘‘a place where a person has his true, fixed and permanent home and principalestablishment to which, whenever absent therefrom he intends to return, and domicile continues until another permanent establish-ment is established.’’ According to MCL 206.18(1)(c), a resident trust is created by the will of a decedent who at his death was do-miciled in Michigan and any trust created by, or consisting of property of, a person domiciled in this state, at the time the trust be-comes irrevocable.

21 MN: See Minn. Stat. Section 290.01, Subd. 7b. This section addresses Residents. A ‘‘Resident’’ by definition is domiciled in thestate, or is domiciled outside the state and both has a place of abode in the state and spends more than half of the year in the state.

22 MS: See Miss. Code Ann. Section 27-9-3 and Miss. Admin. Code Title 35.III.7 Chapter 1.23 MT: See §1-1-215, MCA; §15-30-2101, MCA; ARM 42.2.304; ARM 42.30.101. The Department of Revenue’s responses are for general in-

formational purposes only and are specific to the questions presented in the [Bloomberg] BNA trust nexus survey. The responses are not offered as and donot constitute written advice, legal advice or legal opinions of the Department of Revenue or the state of Montana.



State1

Trustordomiciled

whencreated2


when created3







New Jersey24 Yes Yes Yes25 Yes26 Yes27

New Mexico28 Yes Yes Yes Yes Yes


North Dakota29 Yes Yes Yes Yes Yes

Ohio30 Yes Yes Yes Yes Yes

Oklahoma Yes Yes Yes Yes Yes


Rhode Island32 Yes Yes Yes Yes Yes



Utah33 No No No No No

Vermont34 No No Yes Yes Yes

Virginia35 Yes Yes Yes Yes Yes

West Virginia Yes Yes Yes Yes Yes

Wisconsin36 Yes Yes Yes Yes Yes

24 NJ: See Publication GIT–6 (Part–Year Residents) Page 2.25 NJ: See N.J.S.A. 54A:1–2(o)(3).26 NJ: Id.27 NJ: Id.28 NM: See Section 7-2-2 NMSA 1978, Regulation 3.3.1.9(C) NMAC.29 ND: See North Dakota Administrative Code 81–03–02.1–04.30 OH: See ORC 5747.01(I)(3).31 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income


32 RI: 44–30–5(c) defines residency for a trust, however, there is no specific definition for domicile.33 UT: Irrevocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, nonresident trusts

must still file and pay Utah taxes on income derived from property located in Utah. The answers for this section are ‘‘yes’’ if thetrust is administered in Utah.

34 VT: See Vt. Admin. Code 1–3–102:2.35 VA: See Va. Code §58.1–302. It is unclear whether the questions in this section are intended to address irrevocable trusts dur-

ing the life of the grantor/trustor or upon his death. In cases where the grantor is deceased, the fact that the grantor was domiciledin Virginia when the trust was created will not alone cause the trust to be subject to Virginia’s income tax. The trust’s trustee(s),beneficiaries, and the location of the trust property must be considered. If any of these parties are Virginia domiciles, or the trustproperty is located in Virginia, then the trust is subject to Virginia’s fiduciary income tax. (See P.D. 93–189).

36 WI: See Section 71.01(1n), Wis. Stats.




State1

Trustordomiciled whentrust becameirrevocable2

Holds property ofperson domiciled

when trust becameirrevocable3

Trustordomiciledin state4

Holds propertyof persondomiciledin state5

Trustordomiciledat death6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




Connecticut10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia11 Yes12 Yes13 Yes14 Yes15 No

Georgia16No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




Depends indicates that the respondent’s answer would depend on the facts and circumstances.AK, FL, NV, SD, TX, WA and WY do not impose an individual income tax.NH does not subject trusts to its income and dividends tax.CO, DE, KY, NY, NYC and PA did not participate in this year’s survey.

2 The trust was created as a revocable trust but is now irrevocable, and the trustor was domiciled in your state when the trustbecame irrevocable.

3 The trust was created as a revocable trust but is now irrevocable, and the trust consists of property transferred by a person whowas domiciled in your state when the trust became irrevocable.

4 The trustor is domiciled in your state.5 The trust consists of property of a person who is domiciled in your state.6 The trustor was domiciled in your state as of his/her date of death.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-




10 CT: See Conn. Gen. Stat. §12–701 for definition of ‘‘resident’’ and ‘‘resident trust’’ and See Conn. Agencies Regs. §12–701(a)(1)–1 for items to consider in determining whether or not an individual is domiciled in Connecticut. Generally, an individualwho is domiciled in Connecticut is also a resident individual for Connecticut income tax purposes. Conn. Gen. Stat. §12–701(a)(4)provides the following definition which is applicable to the above questions: ‘‘Resident trust or estate’’ means (A) the estate of a de-cedent who at the time of his death was a resident of this state, (B) the estate of a person who, at the time of commencement of acase under Title 11 of the United States Code, was a resident of this state, (C) a trust, or a portion of a trust, consisting of propertytransferred by will of a decedent who at the time of his death was a resident of this state, and (D) a trust, or a portion of a trust,consisting of the property of (i) a person who was a resident of this state at the time the property was transferred to the trust if thetrust was then irrevocable, (ii) a person who, if the trust was revocable at the time the property was transferred to the trust, andhas not subsequently become irrevocable, was a resident of this state at the time the property was transferred to the trust or (iii) aperson who, if the trust was revocable when the property was transferred to the trust but the trust has subsequently become irre-vocable, was a resident of this state at the time the trust became irrevocable.

11 DC: See DC Code §47-1809.07 (2015).12 DC: See DC Code §47–1801.04(42) (2015).13 DC: Id.14 DC: Id.15 DC: Id.16 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors




State1







Illinois18 Yes YesNo

Response19No

Response20No

Response21


Iowa No No No No No

Kansas22 Yes Yes Yes Yes Yes


Maine23No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland24 No No Yes Yes Yes

Massachusetts25 Depends Depends Yes Yes Yes

Michigan26 Yes Yes Yes Yes27 No28


Mississippi30 Yes Yes Yes Yes Yes

Missouri Yes Yes Yes Yes Yes

Montana31 Yes Yes Yes Yes Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

18 IL: See 35 ILCS 1501(a)(20).19 IL: Not enough information.20 IL: Id.21 IL: Id.22 KS: Yes, if the trust is administered in Kansas. See K.S.A. 79–32,109(d), K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.23 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


24 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax–General Section10–101(k)(1)(iii)). See Tax–General Article Section 10–101(k)(1)(iii)(2). A trust is a resident trust if the creator or grantor is a cur-rent resident of the State.


26 MI: MCL 206.18(1)(a) defines ‘‘domicile’’ as ‘‘a place where a person has his true, fixed and permanent home and principalestablishment to which, whenever absent therefrom he intends to return, and domicile continues until another permanent establish-ment is established.’’ According to MCL 206.18(1)(c), a resident trust is created by the will of a decedent who at his death was do-miciled in Michigan and any trust created by, or consisting of property of, a person domiciled in this state, at the time the trust be-comes irrevocable.

27 MI: Under MCL 206.18(1)(c), residency for a trust is determined at the time the trust becomes irrevocable. The facts presented in this question wouldestablish residency of the trust if true at the time the trust becomes irrevocable.

28 MI: Id.29 MN: See Minn. Stat. Section 290.01, Subd. 7b. This section addresses Residents. A ‘‘Resident’’ by definition is domiciled in the

state, or is domiciled outside the state and both has a place of abode in the state and spends more than half of the year in the state.30 MS: See Miss. Code Ann. Section 27-9-3 and Miss. Admin. Code Title 35.III.7 Chapter 1.31 MT: See §1-1-215, MCA; §15-30-2101, MCA; ARM 42.2.304; ARM 42.30.101. The Department of Revenue’s responses are for general in-




State1







New Jersey32 Yes33 Yes34 Yes Yes Yes

New Mexico35 Yes Yes Yes Yes Yes


North Dakota36 Yes Yes Yes Yes Yes

Ohio37 Yes Yes Yes Yes Yes

Oklahoma Yes Yes Yes Yes Yes


Rhode Island39 Yes Yes Yes Yes Yes




Vermont41 Yes Yes Yes No No

Virginia42 Yes43 Yes44 Yes45 Yes46 No47

West Virginia No No Yes Yes Yes

Wisconsin48 Yes Yes Yes Yes Yes

32 NJ: See Publication GIT–6 (Part–Year Residents) Page 2.33 NJ: See N.J.S.A. 54A:1-2(o)(3).34 NJ: Id.35 NM: See Section 7-2-2 NMSA 1978, Regulation 3.3.1.9(C) NMAC.36 ND: See North Dakota Administrative Code 81–03–02.1–04.37 OH: See ORC 5747.01(I)(3).38 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income


39 RI: 44–30–5(c) defines residency for a trust, however, there is no specific definition for domicile.40 UT: Irrevocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, nonresident trusts


41 VT: See Vt. Admin. Code 1–3–102:2.42 VA: It is unclear whether the questions in this section are intended to address irrevocable trusts during the life of the grantor/

trustor or upon his death. In cases where the grantor is deceased, the fact that the grantor was domiciled in Virginia when the trustwas created will not alone cause the trust to be subject to Virginia’s income tax. The trust’s trustee(s), beneficiaries, and the loca-tion of the trust property must be considered. If any of these parties are Virginia domiciles, or the trust property is located in Vir-ginia, then the trust is subject to Virginia’s fiduciary income tax. (See P.D. 93–189).

43 VA: See Va. Code §58.1-302.44 VA: Id.45 VA: Id.46 VA: Id.47 VA: In the case of intervivos trusts, this factor generally does not create nexus. See P.D. 93–189 (stating that in cases where

the grantor of an inter vivos trust is deceased, ‘‘. . .the Department must consider not just the domicile of the grantor at the time thetrust was created, but also the current domiciles of the trustee(s), beneficiaries, and the location of the [t]rust property. . . [W]herenone of the parties are Virginia domiciles, and the trust property is not located in Virginia, there may not be sufficient nexus to im-pose the tax’’).

48 WI: See Section 71.01(1n), Wis. Stats.




State1

Trustor lived,but was notdomiciled, instate whencreated2

Trust holdsproperty ofperson who

lived, but wasnot domiciled,in state when

created3

Trustor lived,but was not

domiciled, in statewhen propertytransferred4

Trust holds propertyof person who

lived, but was notdomiciled, in state


Trustor lived,but was notdomiciled, instate whencreated and


Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




Connecticut10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia11 No No No No No

Georgia12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response





2 The trust was created by a trustor who lived, but was not domiciled, in your state at the time the trust was created.3 The trust consists of property of a person who lived, but was not domiciled, in your state at the time the trust was created.4 The trust was created by a trustor who lived, but was not domiciled, in your state at the time the property was transferred to

the trust.5 The trust consists of property of a person who lived, but was not domiciled, in your state at the time the property was trans-

ferred to the trust.6 The trustor lived, but was not domiciled, in your state at the time of both the creation of the trust and the transfer of property

to the trust.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-




10 CT: Conn. Gen. Stat. §12–701(a)(4) provides the following definition which is applicable to the above questions: ‘‘Residenttrust or estate’’ means (A) the estate of a decedent who at the time of his death was a resident of this state, (B) the estate of a per-son who, at the time of commencement of a case under Title 11 of the United States Code, was a resident of this state, (C) a trust,or a portion of a trust, consisting of property transferred by will of a decedent who at the time of his death was a resident of thisstate, and (D) a trust, or a portion of a trust, consisting of the property of (i) a person who was a resident of this state at the timethe property was transferred to the trust if the trust was then irrevocable, (ii) a person who, if the trust was revocable at the timethe property was transferred to the trust, and has not subsequently become irrevocable, was a resident of this state at the time theproperty was transferred to the trust or (iii) a person who, if the trust was revocable when the property was transferred to the trustbut the trust has subsequently become irrevocable, was a resident of this state at the time the trust became irrevocable.

11 DC: DC Code §47-18001.04(42) defines resident. These answers could be yes if trust creator was a statutory resident.12 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors




State1




created3








Illinois14No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Iowa No No No No No



Maine15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Massachusetts17 No No Depends Depends Depends

Michigan No No No18 No19 No20


Mississippi No No No No No


14 IL: Not enough information.15 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income




18 MI: Under MCL 206.18(1)(a), domicile is established if an individual lives in Michigan ‘‘at least 183 days during the tax year ormore than 1/2 the days during a taxable year of less than 12 months.’’ According to MCL 206.18(1)(c), the domicile of the trustor ora person owning property in the trust will create nexus for the trust at the time the trust becomes irrevocable.

19 MI: Domicile is defined in MCL 206.18(1)(a). Nexus is created with the state if an individual lives in Michigan ‘‘at least 183days during the tax year or more than 1/2 the days during a taxable year of less than 12 months he shall be deemed a resident in-dividual domiciled in this state.’’ See MCL 206.18(1)(a). Nexus does not exist when a trustor is domiciled in Michigan for fewer than183, unless the trustor intended to be domiciled in Michigan. There exists an irrebuttable presumption of being domiciled in Michi-gan when a trustor resides in Michigan for 183 days or more. Under MCL 206.18(1)(a), domicile is established if an individual lives inMichigan ‘‘at least 183 days during the tax year or more than 1/2 the days during a taxable year of less than 12 months.’’ Accordingto MCL 206.18(1)(c), the domicile of the trustor or a person owning property in the trust will create nexus for the trust at the timethe trust becomes irrevocable.


21 MN: This Section addresses Residents. A ‘‘Resident’’ by definition is domiciled in the state, or is domiciled outside the stateand both has a place of abode in the state and spends more than half of the year in the state.



State1




created3








Montana22 No No No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No23 No24 No 25 No 26 No27



North Dakota Yes Yes Yes Yes Yes

Ohio No No No No No

Oklahoma No No No No Yes


Rhode Island Yes Yes Yes Yes Yes




Vermont No No No No Yes30

Virginia31 No No No No No


Wisconsin No32 No No No No33

22 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the[Bloomberg] BNA trust nexus survey. The responses are not offered as and do not constitute written advice, legal advice or legal opinions of the Depart-ment of Revenue or the state of Montana.

23 NJ: Normally a person or trustor who lives in NJ would be domiciled here but since the trustor and person were not domiciledin NJ the answer is No.

24 NJ: Id.25 NJ: Id.26 NJ: Id.27 NJ: See N.J.S.A. 54A:1–2(o)(3).28 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income


29 UT: Irrevocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, nonresident trustsmust still file and pay Utah taxes on income derived from property located in Utah. The answers for this section are ‘‘yes’’ if thetrust is administered in Utah.

30 VT: ‘‘Yes’’ unless the trust was revocable at the time and has subsequently become irrevocable.31 VA: It is unclear whether the questions in this section are intended to address irrevocable trusts during the life of the grantor/

trustor or upon his death. In cases where the grantor is deceased, the fact that the grantor was domiciled in Virginia when the trustwas created will not alone cause the trust to be subject to Virginia’s income tax. The trust’s trustee(s), beneficiaries, and the loca-tion of the trust property must be considered. If any of these parties are Virginia domiciles, or the trust property is located in Vir-ginia, then the trust is subject to Virginia’s fiduciary income tax. (See P.D. 93–189).

32 WI: If the trust is revocable and the trustor is a resident of Wisconsin, then it is considered a Wisconsin trust. If the trustorhas moved to another state, the trust is no longer a Wisconsin trust.

33 WI: Id.




Trustor maintainedpermanent place of

abode and was:

Trustor did notmaintain permanent

place of abodebut was:

State1

Trustormaintainedpermanent

place of abodewhen created

or whenproperty

transferred2

Trustor instate 183 daysor more when

created orwhen propertytransferred3

Trustor instate 1 to182 days

whencreated or

whenproperty

transferred4

In state183 days ormore whencreated or

whenproperty

transferred5

In state 1to 182 days

whencreated or

whenproperty

transferred6


whenproperty

transferred7


whencreated or

whenproperty

transferred8

Alabama9No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona10 No No No No No No No

Arkansas No No No No No No No

California11 No No No No No No No

Connecticut12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



2 The trustor maintained a permanent place of abode in your state during the year the trust was created or the year property wastransferred to the trust.

3 The trustor was present in your state for 183 days or more in the year the trust was created or the year property was trans-ferred to the trust.

4 The trustor was present in your state for LESS THAN 183 days (i.e., one to 182 days) in the year the trust was created or theyear property was transferred to the trust.

5 The trustor maintained a permanent place of abode in your state and was present in your state for 183 days or more in the yearthe trust was created or the year property was transferred to the trust.

6 The trustor maintained a permanent place of abode in your state and was present in your state for LESS THAN 183 days (i.e.,one to 182 days) in the year the trust was created or the year property was transferred to the trust.

7 The trustor was present in your state for 183 days or more in the year the trust was created or the year property was trans-ferred to the trust, but did not maintain a permanent place of abode in your state.

8 The trustor was present in your state for LESS THAN 183 days (i.e., one to 182 days) in the year the trust was created or theyear property was transferred to the trust, but did not maintain a permanent place of abode in your state.


10 AZ: Resident trusts and estates are taxable on all income. A resident trust is a trust when at least one fiduciary is an Arizonaresident. If there is a corporate fiduciary the trust is a resident trust if administration of the trust is in Arizona. See A.R.S. 43–1301.See ITP 91–2 regarding the determination of residency and A.R.S. 43–104.19 for the definition of resident.






abode and was:



State1



or whenproperty

transferred2




whencreated or

whenproperty

transferred4


whenproperty

transferred5


whencreated or

whenproperty

transferred6


whenproperty

transferred7


whencreated or

whenproperty

transferred8

District of Columbia13 Yes14 Yes15 No16 Yes17 Yes18 Yes19 No20

Georgia21No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Hawaii22 No No No No No No No

Idaho No No No No No No No

Illinois23No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana No No No No No No No

Iowa No No No No No No No

Kansas No Yes24 No Yes25 No Yes26 No

Louisiana No No No No No No No

Maine27No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland28 No No No No No No No

Massachusetts29 Depends No No Yes Depends Yes Depends

13 DC: DC Code §47-18001.04(42) defines resident.14 DC: The District rule references statutory or permanent residence of the trust creator.15 DC: Id.16 DC: This answer could be yes if trust creator was a statutory resident.17 DC: The District rule references statutory or permanent residence of the trust creator.18 DC: Id.19 DC: Id.20 DC: Id.21 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors

and may subject a trust to taxation if the trust was setup to avoid Georgia taxes.22 HI: Neither residence nor domicile of the trustor/settlor/grantor are relevant to the resident status of a trust.23 IL: Not enough information.24 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.25 KS: Id.26 KS: Id.27 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income



29 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a. Testamentary Trust—a trust




abode and was:



State1



or whenproperty

transferred2




whencreated or

whenproperty

transferred4


whenproperty

transferred5


whencreated or

whenproperty

transferred6


whenproperty

transferred7


whencreated or

whenproperty

transferred8

Michigan Yes30 Yes31 No32 Yes33 Yes34 Yes35 No 36

Minnesota37 Yes Yes Yes Yes Yes Yes Yes

Mississippi Yes Yes Yes Yes Yes No No

Missouri Yes No No Yes No Yes No

Montana38 Yes No No Yes Yes No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

under the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created during life of the grantor; is sub-ject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least one trustee, if more than 1, mustbe a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been a Mass resident at the timethe trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during any part of the year for whichthe income is computed; or the grantor or at least one of them, died a Mass resident.

30 MI: ‘‘Permanent place of abode’’ is not a term that is defined or used in Michigan trust income tax statutes. This question wasanswered on the assumption that the term means the same as ‘‘domicile.’’ Under MCL 206.18(1)(a), domicile is established if an indi-vidual lives in Michigan ‘‘at least 183 days during the tax year or more than 1/2 the days during a taxable year of less than 12months.’’ According to MCL 206.18(1)(c), the domicile of the trustor or a person owning property in the trust will create nexus forthe trust at the time the trust becomes irrevocable.




34 MI: Id.35 MI: Under MCL 206.18(1)(a), domicile is established if an individual lives in Michigan ‘‘at least 183 days during the tax year or

more than 1/2 the days during a taxable year of less than 12 months.’’ According to MCL 206.18(1)(c), the domicile of the trustor ora person owning property in the trust will create nexus for the trust at the time the trust becomes irrevocable.

36 MI: ‘‘Permanent place of abode’’ is not a term that is defined or used in Michigan trust income tax statutes. This question wasanswered on the assumption that the term means the same as ‘‘domicile.’’






abode and was:



State1



or whenproperty

transferred2




whencreated or

whenproperty

transferred4


whenproperty

transferred5


whencreated or

whenproperty

transferred6


whenproperty

transferred7


whencreated or

whenproperty

transferred8

New Jersey No No39 No40 No41 No42 No43 No44

New Mexico Yes Yes Yes Yes Yes Yes Yes

North Carolina No No No No No No No

North Dakota Yes Yes Yes Yes Yes Yes Yes

Ohio No No No No No No No

Oklahoma Yes No No Yes No No No

Oregon45 No No No No No No No

Rhode Island Yes Yes Depends46 Yes Yes Yes Yes

South Carolina No No No No No No No

Tennessee No No No No No No No

Utah47 No No No No No No No

Vermont No No No No No No No

39 NJ: A resident trust is created by a trustor who transfers property into the trust and is domiciled in New Jersey under N.J.S.A.54A:1–2(o).

40 NJ: Id.41 NJ: Id.42 NJ: Id.43 NJ: Id.44 NJ: Id.45 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income


46 RI: Will depend on other factors.47 UT: Irrevocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, nonresident trusts





abode and was:



State1



or whenproperty

transferred2




whencreated or

whenproperty

transferred4


whenproperty

transferred5


whencreated or

whenproperty

transferred6


whenproperty

transferred7


whencreated or

whenproperty

transferred8

Virginia48 Yes49 No50 No51 Yes52 Yes53 No54 No

West Virginia No No No Yes No No No

Wisconsin No No No No No No No

48 VA: It is unclear whether the questions in this section are intended to address irrevocable trusts during the life of the grantor/trustor or upon his death. In cases where the grantor is deceased, the fact that the grantor was domiciled in Virginia when the trustwas created will not alone cause the trust to be subject to Virginia’s income tax. The trust’s trustee(s), beneficiaries, and the loca-tion of the trust property must be considered. If any of these parties are Virginia domiciles, or the trust property is located in Vir-ginia, then the trust is subject to Virginia’s fiduciary income tax. (See P.D. 93–189).

49 VA: Under Va. Code §58.1–302, ‘‘domicile’’ means the permanent place of residence of a taxpayer and the place to which heintends to return even though he may actually reside elsewhere, rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

50 VA: A trust is a resident trust if it was created by or consists of property of a person domiciled in Virginia. Under Va. Code§58.1–302, ‘‘domicile’’ means ‘‘the permanent place of residence of a taxpayer and the place to which he intends to return eventhough he may actually reside elsewhere.’’ The factors considered in determining whether an individual is domiciled in Virginia in-clude his expressed intent, conduct, and all attendant circumstances, including: financial independence, business pursuits, employ-ment, income sources, residence for federal income tax purposes, marital status, residence of his parents, spouse, and children, lo-cation of his leasehold, sites of personal and real property owned by the individual, where his motor vehicle and other personalproperty are registered, residence for purposes of voting, and other factors as may be reasonably deemed necessary to determinethe person’s domicile. (See Va. Code §58.1–302 and 23 VAC 10–115–10). However, even if the trust is a resident trust, without an-other connection to Virginia, the trust may not have sufficient nexus with Virginia for fiduciary income tax purposes (see P.D. 93–189).

51 VA: Id.52 VA: Under Va. Code §58.1–302, ‘‘domicile’’ means the permanent place of residence of a taxpayer and the place to which he

intends to return even though he may actually reside elsewhere, rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

53 VA: Id.54 VA: Id.




State1

Trustorregistered

to votewhen

createdor whenproperty

transferred2

Trustorheld validdriver’slicensewhen


transferred3

Trustorlived, butwas not

domiciled,in state

when trustbecame

irrevocable4

Trust holdsproperty

transferredby personwho lived,

but was notdomiciled, instate when

trust becameirrevocable5

Trustorlives,

but notdomiciled,in state6

Trust holdspropertyof personwho lives,


Trustorregisteredto vote8

Trustorholdsvalid

driver’slicense9

Alabama10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona11 No No No No No No No No

Arkansas No No No No No No No No

California12 No No No No No No No No

Connecticut13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia14 Yes Yes Yes No No No Yes Yes



2 The trustor was registered to vote in your state in the year the trust was created or in the year property was transferred to thetrust.

3 The trustor had a valid driver’s license issued by your state as of the date the trust was created or as of the date property wastransferred to the trust.

4 The trust was created as a revocable trust but is now irrevocable, and the trustor lived, but was not domiciled, in your statewhen the trust became irrevocable.

5 The trust was created as a revocable trust but is now irrevocable, and the trust consists of property transferred by a person wholived, but was not domiciled, in your state when the trust became irrevocable.

6 The trustor lives, but is not domiciled, in your state.7 The trust consists of property of a person who lives, but is not domiciled, in your state.8 The trustor is registered to vote in your state.9 The trustor holds a valid driver’s license in your state.10 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-





14 DC: DC Code §47–1801.04(42) (2015) defines resident. The District rule references statutory or permanent residence of thetrust creator.



State1

Trustorregistered

to votewhen


transferred2



transferred3


domiciled,in state

when trustbecame

irrevocable4

Trust holdsproperty




Trustorlives,





Trustorholdsvalid

driver’slicense9

Georgia15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Hawaii16 No No No No No No No No


Illinois17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana No No No No No No No No

Iowa No No No No No No No No

Kansas Yes18 Yes19 No No No No Yes Yes

Louisiana No No No No No No No No

Maine20No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland21 No No No No Yes22 Yes23 Yes24 Yes25

Massachusetts26 No No No No No No No No

15 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factorsand may subject a trust to taxation if the trust was setup to avoid Georgia taxes.

16 HI: Neither residence nor domicile of the trustor/settlor/grantor are relevant to the resident status of a trust.17 IL: Not enough information.18 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.19 KS: Id.20 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income



22 MD: A trust is taxed as a Maryland resident if the grantor is a current Maryland resident. A grantor is a resident if he is do-miciled in Maryland or if he is present in Maryland at least 183 days a year and maintains a place of abode in Maryland.

23 MD: Id.24 MD: Id.25 MD: Id.26 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-




State1

Trustorregistered

to votewhen


transferred2



transferred3


domiciled,in state

when trustbecame

irrevocable4

Trust holdsproperty




Trustorlives,





Trustorholdsvalid

driver’slicense9

Michigan27 Yes Yes No28 No29 No30 No31 Yes32 Yes33

Minnesota34 Yes Yes Yes Yes Yes Yes Yes Yes

Mississippi Yes Yes No No No No Yes Yes

Missouri Yes No No No No No No No

Montana35 No No No No No No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No36 No37 No38 No No No No No

New Mexico Yes Yes Yes Yes Yes Yes Yes Yes

North Carolina No No No No No No No No

North Dakota Yes Yes Yes Yes Yes Yes Yes Yes


Oklahoma No Yes Yes Yes Yes Yes No Yes

Oregon39 No No No No No No No No

Rhode Island Yes Yes Yes Yes Yes Yes Yes Yes

South Carolina No No No No No No No No


28 MI: Domicile is defined in MCL 206.18(1)(a). Nexus is created with the state if an individual lives in Michigan ‘‘at least 183days during the tax year or more than 1/2 the days during a taxable year of less than 12 months he shall be deemed a resident in-dividual domiciled in this state.’’ See MCL 206.18(1)(a). Nexus does not exist when a trustor is domiciled in Michigan for fewer than183, unless the trustor intended to be domiciled in Michigan. There exists an irrebuttable presumption of being domiciled in Michi-gan when a trustor resides in Michigan for 183 days or more.

29 MI: Id.30 MI: Id.31 MI: Id.32 MI: Domicile may be determined by considering factors such as where the taxpayer keeps possessions, lives with family members, votes, maintains

club and lodge memberships, buys automobile licenses, maintains a mailing address and banks, operates a business, or sues for a divorce. No one factormay be controlling in this analysis. See MAC R 206.5(2).

33 MI: Id.34 MN: This Section addresses Residents. A ‘‘Resident’’ by definition is domiciled in the state, or is domiciled outside the state

and both has a place of abode in the state and spends more than half of the year in the state.35 MT: The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the


36 NJ: A resident trust is created by a trustor who transfers property into the trust and is domiciled in New Jersey under N.J.S.A.54A:1-2(o).

37 NJ: Id.38 NJ: Trustor was not domiciled in NJ. See N.J.S.A. 54A:1–2(o)(3).39 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income




State1

Trustorregistered

to votewhen


transferred2



transferred3


domiciled,in state

when trustbecame

irrevocable4

Trust holdsproperty




Trustorlives,





Trustorholdsvalid

driver’slicense9

Tennessee No No No No No No No No

Utah40 No No No No No No No No

Vermont No No No Yes No No No No

Virginia41 No42 No43 No No No No No44 No45

West Virginia No No No No No No No No

Wisconsin No No No No No No No No



42 VA: These factors would be considered in determining whether the trust is a resident trust (see 23 VAC 10–115–10).43 VA: Id.44 VA: Id.45 VA: Id.




Trustor maintainspermanent placeof abode and is:

Trustor does notmaintain permanent

place of abode but is:

State1

Trustormaintainspermanent

place ofabode2

Trustor instate 183days ormore3

Trustor instate 1 to182 days4


In state 1to 182days6



Trustorlived instate atdeath9

Alabama10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




Connecticut13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia14 Yes Yes No No No No No No

Georgia15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



2 The trustor maintains a permanent place of abode in your state.3 The trustor spent 183 days or more in your state.4 The trustor spent less than 183 days (i.e., one to 182 days) in your state.5 The trustor maintains a permanent place of abode in your state and spent 183 days or more in your state.6 The trustor maintains a permanent place of abode in your state and spent less than 183 days (i.e., one to 182 days) in your

state.7 The trustor spent 183 days or more in your state, but does not maintain a permanent place of abode in your state.8 The trustor spent less than 183 days (i.e., one to 182 days) in your state, but does not maintain a permanent place of abode in

your state.9 The trustor was a resident of your state as of his/her date of death.10 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-





14 DC: DC Code §47–1801.04(42) (2015) defines resident. The District rule references statutory or permanent residence of thetrust creator.

15 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factorsand may subject a trust to taxation if the trust was setup to avoid Georgia taxes.






State1


place ofabode2










Illinois17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana No No No No No No No No

Iowa No No No No No No No No

Kansas Yes Yes No Yes18 No Yes19 No Yes


Maine20No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland21 Yes22 Yes23 No24 Yes25 No26 No27 No28 Yes

Massachusetts29 No No No Yes Depends Yes Depends No

16 HI: Neither residence nor domicile of the trustor/settlor/grantor are relevant to the resident status of a trust.17 IL: Not enough information.18 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.19 KS: Id.20 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income




23 MD: Id.24 MD: Id.25 MD: Id.26 MD: Id.27 MD: Id.28 MD: Id.29 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-







State1


place ofabode2








Michigan Yes30 Yes31 No32 Yes33 Yes34 Yes35 No36 No37


Mississippi Yes Yes Yes Yes Yes No No Yes

Missouri No No No Yes No Yes Yes No

Montana39 Yes No No Yes Yes No No Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No40 No41 No42 No43 No









34 MI: Id.35 MI: Id.36 MI: ‘‘Permanent place of abode’’ is not a term that is defined or used in Michigan trust income tax statutes. This question was

answered on the assumption that the term means the same as ‘‘domicile.’’37 MI: Under MCL 206.18(1)(a), domicile is established if an individual lives in Michigan ‘‘at least 183 days during the tax year or

more than 1/2 the days during a taxable year of less than 12 months.’’ According to MCL 206.18(1)(c), the domicile of the trustor ora person owning property in the trust will create nexus for the trust at the time the trust becomes irrevocable.




41 NJ: Id.42 NJ: Id.43 NJ: Id.






State1


place ofabode2








Oklahoma Yes No No Yes No No No No





Utah45 No No No No No No No No


Virginia46 Yes47 No48 No49 Yes50 Yes51 No No No52

West Virginia No No No No No No No Yes

Wisconsin No No No No No No No Yes

44 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross incomefrom Oregon sources, per Oregon Revised Statutes (ORS) 316.027, 316.362 and 316.282 and Oregon Administrative Rule (OAR)150–316.282.



47 VA: Under Va. Code §58.1–302, ‘‘domicile’’ means the permanent place of residence of a taxpayer and the place to which heintends to return even though he may actually reside elsewhere, rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

48 VA: A trust is a resident trust if it was created by or consists of property of a person domiciled in Virginia. Under Va. Code§58.1–302, ‘‘domicile’’ means ‘‘the permanent place of residence of a taxpayer and the place to which he intends to return eventhough he may actually reside elsewhere.’’ The factors considered in determining whether an individual is domiciled in Virginia in-clude his expressed intent, conduct, and all attendant circumstances, including: financial independence, business pursuits, employ-ment, income sources, residence for federal income tax purposes, marital status, residence of his parents, spouse, and children, lo-cation of his leasehold, sites of personal and real property owned by the individual, where his motor vehicle and other personalproperty are registered, residence for purposes of voting, and other factors as may be reasonably deemed necessary to determinethe person’s domicile. (See Va. Code §58.1–302 and 23 VAC 10–115–10). However, even if the trust is a resident trust, without an-other connection to Virginia, the trust may not have sufficient nexus with Virginia for fiduciary income tax purposes (see P.D. 93–189).


intends to return even though he may actually reside elsewhere, rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

51 VA: Id.52 VA: See P.D. 93–189 (inter vivos trust); P.D. 99–110 (testamentary trust).



Nexus–Creating Activities: Revocable Inter Vivos Trust Created by Resident(Part 1 of 5)

State1

Trustordomiciled

whencreated2

Trustholds

propertyof persondomiciled

whencreated3

Trustordomiciled

whenproperty

transferred4

Trustholds


whenproperty

transferred5

Trustordomiciled

whencreated

and whenproperty

transferred6


Trustholds

propertyof persondomiciledin state8


Alabama10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




Connecticut13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia14Not

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

Applicable

Georgia15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



2 The trust was created by a trustor who was domiciled in your state at the time the trust was created.3 The trust consists of property of a person who was domiciled in your state at the time the trust was created.4 The trust was created by a trustor who was domiciled in your state at the time the property was transferred to the trust.5 The trust consists of property of a person who was domiciled in your state at the time the property was transferred to the trust.6 The trustor was domiciled in your state at the time of both the creation of the trust and the transfer of property to the trust.7 The trustor is domiciled in your state.8 The trust consists of property of a person who is domiciled in your state.9 The trustor was domiciled in your state as of his/her date of death.10 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-



12 CA: California will tax all of the income of a grantor trust if the grantor is a California resident. A revocable inter vivos trustwill be treated as a grantor trust. Accordingly, the trust will be taxable in California as if the grantor (trustor) owned the assets in-dividually and not in trust. For trusts like these, the main question will be whether the grantor is a California resident.


14 DC: These answers N/A as the grantor would be taxed since this is a irrevocable trust.15 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors

and may subject a trust to taxation if the trust was setup to avoid Georgia taxes.



State1

Trustordomiciled

whencreated2

Trustholds


whencreated3

Trustordomiciled

whenproperty

transferred4

Trustholds


whenproperty

transferred5

Trustordomiciled

whencreated

and whenproperty

transferred6


Trustholds





Illinois17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana18 No No No No No Yes Yes Yes

Iowa19 No No No No No No No No

Kansas20 Yes Yes Yes Yes Yes Yes Yes Yes


Maine21No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland22 No No No No No Yes Yes No

Massachusetts23 Yes Yes Yes Yes Yes Yes Depends Yes

Michigan24 No No No No No No No Yes25

16 HI: Neither residence nor domicile of the trustor/settlor/grantor are relevant to the resident status of a trust. Hawaii conformsto IRC §§671 et. seq., thus a trustor/settlor/grantor will be treated as owner of trust assets for income tax purposes if the trustor/settlor/grantor retains the power to revoke the trust.

17 IL: Not enough information.18 IN: It is not necessarily trust domicile; however, the income from the trust would be part of the trustor’s income and taxable

under IC 6-3-2-1 if the trustor was domiciled in Indiana. The answers to these questions may change depending on the trustor’s presence in Indiana dur-ing a particular year and/or domicile.

19 IA: Grantor trusts’ situs is determined by the residence of the grantor, rather than domicile.20 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.21 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


22 MD: See Tax–General Article Section 10–101(k)(1)(iii)(2). A trust is taxed as a Maryland resident fiduciary if it is principallyadministered in the State (see Tax–General Section 10–101(k)(1)(iii)).


24 MI: According to MCL 206.18(1)(c), the domicile of the trustor or a person owning property within the trust only creates resi-dency with the state if the trustor was a resident of the state at the time that the trust becomes irrevocable. Nexus created by pres-ence in the state is based on domicile.

25 MI: MCL 206.18(1)(c) defines ‘‘domicile’’ as ‘‘a place where a person has his true, fixed and permanent home and principalestablishment to which, whenever absent therefrom he intends to return, and domicile continues until another permanent establish-ment is established.’’ According to MCL 206.18(1)(c), the domicile of the trustor or a person owning property in the trust has nexuswith the state at the time the trust becomes irrevocable.



State1

Trustordomiciled

whencreated2

Trustholds


whencreated3

Trustordomiciled

whenproperty

transferred4

Trustholds


whenproperty

transferred5

Trustordomiciled

whencreated

and whenproperty

transferred6


Trustholds




Mississippi27 Yes Yes Yes Yes Yes Yes Yes Yes

Missouri Yes Yes Yes Yes Yes Yes Yes Yes

Montana28 Yes Yes Yes Yes Yes Yes Yes Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey29 Yes Yes Yes30 Yes31 Yes32 Yes Yes Yes

New Mexico33 Yes Yes Yes Yes Yes Yes Yes Yes


North Dakota34 Yes Yes Yes Yes Yes Yes Yes Yes

Ohio35 Yes Yes Yes Yes No No Yes No

Oklahoma No No No No No Yes Yes Yes


Rhode Island37 Yes Yes Yes Yes Yes Yes Yes Yes



Utah38 No No No No No No No Yes

Vermont39 No No Yes Yes Yes No No No

26 MN: This Section addresses Residents. A ‘‘Resident’’ by definition is domiciled in the state, or is domiciled outside the stateand both has a place of abode in the state and spends more than half of the year in the state. Minnesota Rule 8001.0300 describesthe multiple factors to be reviewed in determining Minnesota ‘‘Domicile.’’

27 MS: See Miss. Code Ann. Section 27-9-3 and Miss. Admin. Code Title 35.III.7 Chapter 1.28 MT: §1-1-215; §15-30-2101; ARM 42.2.304; ARM 42.30.101. The Department of Revenue’s responses are for general informational purposes

only and are specific to the questions presented in the [Bloomberg] BNA trust nexus survey. The responses are not offered as and do not constitute writtenadvice, legal advice or legal opinions of the Department of Revenue or the state of Montana.

29 NJ: See Publication GIT–6 (Part–Year Residents) Page 2.30 NJ: See N.J.S.A. 54A:1–2(o)(3).31 NJ: Id.32 NJ: Id.33 NM: See Section 7-2-2 NMSA 1978, Regulation 3.3.1.9(C) NMAC.34 ND: See North Dakota Administrative Code 81–03–02.1–04.35 OH: See ORC 5747.01(I)(3).36 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income


37 RI: 44–30–5(c) defines residency for a trust, however, there is no specific definition for domicile.38 UT: Revocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, upon the death of

the Trustor the Trust becomes irrevocable and any trust assets are included in the federal Gross Estate of the decedent. Pursuant toUtah Code §75-7-103(1) If a decedent is domiciled in Utah at death then any estate or Trust created by the death of the decedentmaintains the same domicile. The answers to all questions in this section are ‘‘yes’’ if the trust is administered in Utah.

39 VT: See Vt. Admin. Code 1–3–102:2.



State1

Trustordomiciled

whencreated2

Trustholds


whencreated3

Trustordomiciled

whenproperty

transferred4

Trustholds


whenproperty

transferred5

Trustordomiciled

whencreated

and whenproperty

transferred6


Trustholds



Virginia40 Yes41 Yes42 Yes43 Yes44 Yes45 Yes46 Yes47 No48

West Virginia49 Yes Yes Yes Yes Yes Yes Yes Yes

Wisconsin50 No51 No52 No53 No54 No55 Yes56 No57 Yes

40 VA: In cases where the grantor is deceased, the fact that the grantor was domiciled in Virginia when the trust was created willnot alone cause the trust to be subject to Virginia’s income tax. The trust’s trustee(s), beneficiaries, and the location of the trustproperty must be considered. If any of these parties are Virginia domiciles, or the trust property is located in Virginia, then the trustis subject to Virginia’s fiduciary income tax. (See P.D. 93–189).

41 VA: See Va. Code §58.1–302.42 VA: Id.43 VA: Id.44 VA: Id.45 VA: Id.46 VA: Id.47 VA: Id.48 VA: In the case of intervivos trusts, this factor generally does not create nexus. See P.D. 93–189 (stating that in cases where

the grantor of an inter vivos trust is deceased, ‘‘...the Department must consider not just the domicile of the grantor at the time thetrust was created, but also the current domiciles of the trustee(s), beneficiaries, and the location of the [t]rust property...[W]herenone of the parties are Virginia domiciles, and the trust property is not located in Virginia, there may not be sufficient nexus to im-pose the tax’’).

49 WV: See WV Code of State Rules 110 C.S.R. 21–7.1.2.50 WI: See Section 71.01(1n), Wis. Stats.51 WI: Under sec. 71.04(1)(b)2, Wis. Stats., a grantor of a revocable trust domiciled in Wisconsin would be taxed on the trust’s

income. Furthermore, a grantor domiciled in Wisconsin who establishes a trust in another state is still taxable on the trust income,is expressly declared to be engaging in tax avoidance, and is still subject to Wisconsin tax, per sec. 71.17(4), Wis. Stats. The trustwouldn’t be taxable, but the grantor certainly would be.

52 WI: Id.53 WI: Id.54 WI: Id.55 WI: Id.56 WI: Id.57 WI: Id.




State1


Trust holdsproperty of personwho lived, but was

not domiciled,in state when

created3

Trustor lived,but was notdomiciled, instate when


Trust holds propertyof person who lived,

but was notdomiciled, in state


Trustor lived, butwas not domiciled,

in state whencreated and


Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




Connecticut10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

Applicable

Georgia12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




2 The trust was created by a trustor who lived, but was not domiciled, in your state at the time the trust was created.3 The trust consists of property of a person who lived, but was not domiciled, in your state at the time the trust was created.4 The trust was created by a trustor who lived, but was not domiciled, in your state at the time the property was transferred to

the trust.5 The trust consists of property of a person who lived, but was not domiciled, in your state at the time the property was trans-

ferred to the trust.6 The trustor lived, but was not domiciled, in your state at the time of both the creation of the trust and the transfer of property

to the trust.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-






and may subject a trust to taxation if the trust was setup to avoid Georgia taxes.13 HI: Neither residence nor domicile of the trustor/settlor/grantor are relevant to the resident status of a trust. Hawaii conforms

to IRC §§671 et. seq., thus a trustor/settlor/grantor will be treated as owner of trust assets for income tax purposes if the trustor/settlor/grantor retains the power to revoke the trust.



State1




created3










Illinois14No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana15 No No No No No

Iowa No No No No Yes

Kansas16 No No No No No


Maine17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Massachusetts19 No Depends Depends Depends Depends


Minnesota21No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Mississippi No No No No No


14 IL: Not enough information.15 IN: The answers to these questions may change depending on the trustor’s presence in Indiana during a particular year and/or domicile.16 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.17 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income





21 MN: If the property consists of personal or real property located in Minnesota then the revocable trust has Minnesota nexus.If the property consists of intangible property then the residency of the grantor (trustor) of the revocable determines whether thetrust has Minnesota nexus. The scenario does not provide sufficient information to determine the Residency of the grantor. Minne-sota ‘‘Domicle’’ is NOT dependant on a single factor but is determined by multiple factors described in Minnesota Rule 8001.0300.



State1




created3










NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey23 No No No No No




Ohio No No No No No

Oklahoma No No No No Yes


Rhode Island Yes Yes Yes Yes Yes




Vermont No No No No Yes26



Wisconsin No No No No No


23 NJ: Normally a person who lives in NJ would be domiciled in NJ but since the trustor and person do not live in NJ the answeris No.


25 UT: Revocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, upon the death ofthe Trustor the Trust becomes irrevocable and any trust assets are included in the federal Gross Estate of the decedent. Pursuant toUtah Code §75-7-103(1) If a decedent is domiciled in Utah at death then any estate or Trust created by the death of the decedentmaintains the same domicile. The answers to all questions in this section are ‘‘yes’’ if the trust is administered in Utah.

26 VT: ‘‘Yes’’ unless the trust was revocable at the time and has subsequently become irrevocable.27 VA: In cases where the grantor is deceased, the fact that the grantor was domiciled in Virginia when the trust was created will

not alone cause the trust to be subject to Virginia’s income tax. The trust’s trustee(s), beneficiaries, and the location of the trustproperty must be considered. If any of these parties are Virginia domiciles, or the trust property is located in Virginia, then the trustis subject to Virginia’s fiduciary income tax. (See P.D. 93–189).




Trustor maintainedpermanent place

of abode and was:


place of abode but was:

State1


place ofabode whencreated or

whenproperty

transferred2

Trustor instate 183days or

more whencreated or

whenproperty

transferred3


whencreated or

whenproperty

transferred4

In state 183days or

more whencreated or

whenproperty

transferred5

In state 1 to182 days

whencreated or

whenproperty

transferred6

In state 183days or

more whencreated or

whenproperty

transferred7


whencreated or

whenproperty

transferred8

Alabama9No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona10 No No No No No No No

Arkansas No No No No No No No

California11 No No No No No No No

Connecticut12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



2 The trustor maintained a permanent place of abode in your state during the year the trust was created or the year property wastransferred to the trust.

3 The trustor was present in your state for 183 days or more in the year the trust was created or the year property was trans-ferred to the trust.

4 The trustor was present in your state for less than 183 days (i.e., one to 182 days) in the year the trust was created or the yearproperty was transferred to the trust.

5 The trustor maintained a permanent place of abode in your state and was present in your state for 183 days or more in the yearthe trust was created or the year property was transferred to the trust.

6 The trustor maintained a permanent place of abode in your state and was present in your state for less than 183 days (i.e., oneto 182 days) in the year the trust was created or the year property was transferred to the trust.

7 The trustor was present in your state for 183 days or more in the year the trust was created or the year property was trans-ferred to the trust, but did not maintain a permanent place of abode in your state.

8 The trustor was present in your state for less than 183 days (i.e., one to 182 days) in the year the trust was created or the yearproperty was transferred to the trust, but did not maintain a permanent place of abode in your state.


10 AZ: Resident trusts and estates are taxable on all income. A resident trust is a trust when at least one fiduciary is an Arizonaresident. If there is a corporate fiduciary the trust is a resident trust if administration of the trust is in Arizona. See A.R.S. 43–1301.See ITP 91–2 regarding the determination of residency and A.R.S. 43–104.19 for the definition of resident.






of abode and was:



State1



whenproperty

transferred2


more whencreated or

whenproperty

transferred3


whencreated or

whenproperty

transferred4

In state 183days or

more whencreated or

whenproperty

transferred5


whencreated or

whenproperty

transferred6

In state 183days or

more whencreated or

whenproperty

transferred7


whencreated or

whenproperty

transferred8


ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

Applicable

Georgia14No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Hawaii15 No No No No No No No


Illinois16No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana17 No No No No No No No

Iowa Yes Yes No Yes Yes Yes No

Kansas18 No Yes No Yes No Yes No


Maine19No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland20 No No No No No No No

Massachusetts21 Depends No No Yes Depends Yes Depends











of abode and was:



State1



whenproperty

transferred2


more whencreated or

whenproperty

transferred3


whencreated or

whenproperty

transferred4

In state 183days or

more whencreated or

whenproperty

transferred5


whencreated or

whenproperty

transferred6

In state 183days or

more whencreated or

whenproperty

transferred7


whencreated or

whenproperty

transferred8

Michigan22 No No No No No No No

Minnesota23No

Response24No

Response25No

Response26 Yes27No

Response28No

Response29No

Response30

Mississippi Yes Yes Yes Yes Yes No No

Missouri Yes No No Yes No No No

Montana31 Yes No No Yes Yes No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No32 No33 No34 No35 No36 No37





Oklahoma No No No No No No No

Oregon38 No No No No No No No


23 MN: If the property consists of personal or real property located in Minnesota then the revocable trust has Minnesota nexus.If the property consists of intangible property then the residency of the grantor (trustor) of the revocable determines whether thetrust has Minnesota nexus. Minnesota ‘‘Domicle’’ is NOT dependant on a single factor but is determined by multiple factors de-scribed in Minnesota Rule 8001.0300.

24 MN: The scenario does not provide sufficient information to determine the Residency of the grantor.25 MN: The number of days in Minnesota does not determine Residency of the grantor.26 MN: Id.27 MN: The grantor meets the criteria of Minnesota residency.28 MN: The scenario does not provide sufficient information to determine the Residency of the grantor.29 MN: Id.30 MN: Id.31 The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the [Bloomberg]

BNA trust nexus survey. The responses are not offered as and do not constitute written advice, legal advice or legal opinions of the Department of Revenueor the state of Montana.


33 NJ: Id.34 NJ: Id.35 NJ: Id.36 NJ: Id.37 NJ: Id.38 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income





of abode and was:



State1



whenproperty

transferred2


more whencreated or

whenproperty

transferred3


whencreated or

whenproperty

transferred4

In state 183days or

more whencreated or

whenproperty

transferred5


whencreated or

whenproperty

transferred6

In state 183days or

more whencreated or

whenproperty

transferred7


whencreated or

whenproperty

transferred8

Rhode Island Yes Yes Depends39 Yes Yes Yes Yes

South Carolina No No No No No No No

Tennessee No No No No No No No

Utah40 No No No No No No No


Virginia41 Yes42 No43 No44 Yes45 Yes46 No No

West Virginia No No No Yes No No No

Wisconsin No No No No No No No

39 RI: Will depend on other factors.40 UT: Revocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, upon the death of

the Trustor the Trust becomes irrevocable and any trust assets are included in the federal Gross Estate of the decedent. Pursuant toUtah Code §75-7-103(1), if a decedent is domiciled in Utah at death then any estate or Trust created by the death of the decedentmaintains the same domicile. The answers to all questions in this section are ‘‘yes’’ if the trust is administered in Utah.


42 VA: Under Va. Code §58.1–302, ‘‘domicile’’ means the permanent place of residence of a taxpayer and the place to which heintends to return even though he may actually reside elsewhere,’’ rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

43 VA: A trust is a resident trust if it was created by or consists of property of a person domiciled in Virginia. Under Va. Code§58.1–302, ‘‘domicile’’ means ‘‘the permanent place of residence of a taxpayer and the place to which he intends to return eventhough he may actually reside elsewhere. The factors considered in determining whether an individual is domiciled in Virginia in-clude his expressed intent, conduct, and all attendant circumstances, including: financial independence, business pursuits, employ-ment, income sources, residence for federal income tax purposes, marital status, residence of his parents, spouse, and children, lo-cation of his leasehold, sites of personal and real property owned by the individual, where his motor vehicle and other personalproperty are registered, residence for purposes of voting, and other factors as may be reasonably deemed necessary to determinethe person’s domicile. (See Va. Code §58.1–302 and 23 VAC 10–115–10). However, even if the trust is a resident trust, without an-other connection to Virginia, the trust may not have sufficient nexus with Virginia for fiduciary income tax purposes (See P.D. 93–189).


intends to return even though he may actually reside elsewhere,’’ rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

46 VA: Id.




State1

Trustorregistered tovote whencreated or


Trustor heldvalid driver’slicense when


Trustor lives,but is notdomiciled,in state4

Trust holdsproperty ofperson wholives, but is

not domiciled,in state5


Trustorholds valid

driver’slicense7

Alabama8No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona9 No No No No No No


California10 No No Yes No Yes No

Connecticut11No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

Applicable

Georgia13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




2 The trustor was registered to vote in your state in the year the trust was created or in the year property was transferred to thetrust.

3 The trustor had a valid driver’s license issued by your state as of the date the trust was created or as of the date property wastransferred to the trust.

4 The trustor lives, but is not domiciled, in your state.5 The trust consists of property of a person who lives, but is not domiciled, in your state.6 The trustor is registered to vote in your state.7 The trustor holds a valid driver’s license in your state.8 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-










State1









Trustorholds valid

driver’slicense7


Illinois15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana16 No No No No No No

Iowa No No Yes No No No

Kansas17 Yes Yes No No Yes Yes


Maine18No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland19 No No Yes20 Yes21 Yes22 Yes23

Massachusetts24 No No No No No No

Michigan25 No No No No No No

Minnesota26No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Missouri Yes No No No No No





21 MD: Id.22 MD: Id.23 MD: Id.24 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-


25 MI: According to MCL 206.18(1)(c), the domicile of the trustor or a person owning property within the trust only creates resi-dency with the state if the trustor was a resident of the state at the time that the trust becomes irrevocable. Nexus created by pres-ence in the state is based on domicile

26 MN: If the property consists of personal or real property located in Minnesota then the revocable trust has Minnesota nexus.If the property consists of intangible property then the residency of the grantor (trustor) of the revocable determines whether thetrust has Minnesota nexus. The single criteria does not provide sufficient information to determine Residency of grantor. Minnesota‘‘Domicle’’ is NOT dependant on a single factor but is determined by multiple factors described in Minnesota Rule 8001.0300.



State1









Trustorholds valid

driver’slicense7

Montana27 No No No No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No28 No29 No No No No




Ohio No No No No No No

Oklahoma No Yes Yes Yes No Yes


Rhode Island Yes Yes Yes Yes Yes Yes


Tennessee No No No No No No

Utah31 No No No No No No

Vermont No No No No No No

Virginia32 No33 No34 No No No35 No36

West Virginia No No No No No37 No

Wisconsin No No No No No No

27 The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the [Bloomberg]BNA trust nexus survey. The responses are not offered as and do not constitute written advice, legal advice or legal opinions of the Department of Revenueor the state of Montana.

28 NJ: A resident trust is created by a trustor who transfers property into the trust and is domiciled in New Jersey under N.J.S.A.54A:1-2(o).

29 NJ: Id.30 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income


31 UT: Revocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, upon the death ofthe Trustor the Trust becomes irrevocable and any trust assets are included in the federal Gross Estate of the decedent. Pursuant toUtah Code §75-7-103(1), if a decedent is domiciled in Utah at death then any estate or Trust created by the death of the decedentmaintains the same domicile. The answers to all questions in this section are ‘‘yes’’ if the trust is administered in Utah.


33 VA: These factors would be considered in determining whether the trust is a resident trust (see 23 VAC 10–115–10). However,even if the trust is a resident trust, without another connection to Virginia, the trust may not have sufficient nexus with Virginia forfiduciary income tax purposes. (See P.D. 93–189).

34 VA: Id.35 VA: Id.36 VA: Id.37 WV: See W.Va. Code of State Rules §110CSR21–7.1.2.2.c.





Trustor doesnot maintain

permanent placeof abode but is:

State1


place ofabode2








Alabama10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



California12 Yes Yes No Yes Depends Depends No No

Connecticut13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

ApplicableNot

Applicable

Georgia15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



2 The trustor maintains a permanent place of abode in your state.3 The trustor spent 183 days or more in your state.4 The trustor spent less than 183 days (i.e., one to 182 days) in your state.5 The trustor maintains a permanent place of abode in your state and spent 183 days or more in your state.6 The trustor maintains a permanent place of abode in your state and spent less than 183 days (i.e., one to 182 days) in your

state.7 The trustor spent 183 days or more in your state, but does not maintain a permanent place of abode in your state.8 The trustor spent less than 183 days (i.e., one to 182 days) in your state, but does not maintain a permanent place of abode in

your state.9 The trustor was a resident of your state as of his/her date of death.10 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-












State1


place ofabode2










Illinois17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Indiana No18 Yes19 No20 Yes21 No22 Yes23 No24 Yes25

Iowa Yes Yes No Yes Yes Yes No Yes

Kansas26 No Yes Yes Yes No Yes No Yes


Maine27No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland28 Yes Yes No Yes No No No No

Massachusetts29 No No No Yes Depends Yes Depends Depends

16 HI: Neither residence nor domicile of the trustor/settlor/grantor are relevant to the resident status of a trust. Hawaii conformsto IRC §§671 et. seq., thus a trustor/settlor/grantor will be treated as owner of trust assets for income tax purposes if the trustor/settlor/grantor retains the power to revoke the trust.

17 IL: Not enough information.18 IN: The answer to this question may change depending on the trustor’s presence in Indiana during a particular year and/or domicile.19 IN: The trustor is considered an Indiana resident by being present for 183 or more days and therefore the income is taxable under

IC 6-3-2-1.20 IN: The answer to this question may change depending on the trustor’s presence in Indiana during a particular year and/or domicile.21 IN: The trustor is considered an Indiana resident by being present for 183 or more days and therefore the income is taxable under



IC 6-3-2-1.26 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.27 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


28 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (See Tax–General Section10–101(k)(1)(iii)). A trust is taxed as a Maryland resident if the grantor is a current Maryland resident. A grantor is a resident if heis domiciled in Maryland or if he is present in Maryland at least 183 days a year and maintains a place of abode in Maryland.







State1


place ofabode2








Michigan30 No No No No No No No Yes

Minnesota31No

Response32No

Response33No

Response34 Yes35No

Response36No

Response37No

Response38No

Response39

Mississippi Yes Yes Yes Yes Yes No No Yes

Missouri No No No Yes No No No No

Montana40 Yes No No Yes Yes No No Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No41 No42 No43 No44 No





Oklahoma Yes No No Yes No No No No





31 MN: If the property consists of personal or real property located in Minnesota then the revocable trust has Minnesota nexus.If the property consists of intangible property then the residency of the grantor (trustor) of the revocable determines whether thetrust has Minnesota nexus. Minnesota ‘‘Domicle’’ is NOT dependant on a single factor but is determined by multiple factors de-scribed in Minnesota Rule 8001.0300.

32 MN: The single criteria does not provide sufficient information to determine Residency of grantor.33 MN: The number of days in Minnesota does not determine Residency of the grantor.34 MN: Id.35 MN: The grantor meets the criteria of Minnesota residency.36 MN: The scenario does not provide sufficient information to determine Residency of the grantor.37 MN: Id.38 MN: Id.39 MN: Id.40 The Department of Revenue’s responses are for general informational purposes only and are specific to the questions presented in the [Bloomberg]

BNA trust nexus survey. The responses are not offered as and do not constitute written advice, legal advice or legal opinions of the Department of Revenueor the state of Montana.


42 NJ: Id.43 NJ: Id.44 NJ: Id.45 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income







State1


place ofabode2









Utah46 No No No No No No No Yes


Virginia47 Yes48 No49 No50 Yes51 Yes52 No No No53

West Virginia No No54 No Yes No No55 No No

Wisconsin No No No No No No No Yes

46 UT: Revocable Intervivos trusts are only Utah resident trusts if the trust is administered in Utah; however, upon the death ofthe Trustor the Trust becomes irrevocable and any trust assets are included in the federal Gross Estate of the decedent. Pursuant toUtah Code §75-7-103(1) If a decedent is domiciled in Utah at death then any estate or Trust created by the death of the decedentmaintains the same domicile. The answers to all questions in this section are ‘‘yes’’ if the trust is administered in Utah.


48 VA: Under Va. Code §58.1–302, ‘‘domicile’’ means the permanent place of residence of a taxpayer and the place to which heintends to return even though he may actually reside elsewhere,’’ rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

49 VA: A trust is a resident trust if it was created by or consists of property of a person domiciled in Virginia. Under Va. Code§58.1–302, ‘‘domicile’’ means ‘‘the permanent place of residence of a taxpayer and the place to which he intends to return eventhough he may actually reside elsewhere.’’ The factors considered in determining whether an individual is domiciled in Virginia in-clude his expressed intent, conduct, and all attendant circumstances, including: financial independence, business pursuits, employ-ment, income sources, residence for federal income tax purposes, marital status, residence of his parents, spouse, and children, lo-cation of his leasehold, sites of personal and real property owned by the individual, where his motor vehicle and other personalproperty are registered, residence for purposes of voting, and other factors as may be reasonably deemed necessary to determinethe person’s domicile. (See Va. Code §58.1–302 and 23 VAC 10–115–10). However, even if the trust is a resident trust, without an-other connection to Virginia, the trust may not have sufficient nexus with Virginia for fiduciary income tax purposes (See P.D. 93–189).


intends to return even though he may actually reside elsewhere,’’ rather than the taxpayer’s ‘‘permanent place of abode’’ as statedabove. Moreover, under Va. Code §58.1–302, the term ‘‘resident estate or trust’’ is defined, in part, as ‘‘a trust created by or consist-ing of property of a person domiciled in Virginia.’’ Assuming the trustor in these questions was domiciled in Virginia, each activity,by itself, would create sufficient nexus to subject the trust to Virginia’s fiduciary income tax.

52 VA: Id.53 VA: See P.D. 93–189 (inter vivos trust); P.D. 99–110 (testamentary trust).54 WV: See W.Va. Code §11–21–7(a)(2).55 WV: See W.Va. Code of State Rules §110CSR21–7.1.3.2.a.



Nexus–Creating Activities: Resident Trustee (Part 1 of 6)


State1Domiciledin state2

Lives,but not

domiciled,in state3

Maintainspermanent

place ofabode4


In state1 to 182

days6


In state1 to 182

days8

Alabama9No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona10 Yes Yes Yes No No Yes Yes

Arkansas11 Yes No No No No Yes No

California Yes Yes Yes Depends12 Depends13 Depends Depends

Connecticut14 No No No No No No No

District of Columbia15 No No No No No No No

Georgia Yes Depends Yes Yes Depends Yes Depends

Hawaii Yes16 Yes17 Yes18 Yes19 No20 Yes21 Yes22




2 A trustee is domiciled in your state.3 A trustee lives, but is not domiciled, in your state.4 A trustee has a permanent place of abode in your state.5 A trustee is present in your state for 183 days or more.6 A trustee is present in your state for less than 183 days (i.e., one to 182 days).7 A trustee maintains a permanent place of abode in your state and spent 183 days or more in your state.8 A trustee maintains a permanent place of abode in your state and spent less than 183 days (i.e., one to 182 days) in your state.9 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-


resident. If there is a corporate fiduciary the trust is a resident trust if the administration of the trust is in Arizona. See A.R.S. 43–1301. See ITP 91–2 regarding the determination of residency and A.R.S. 43–104.10 for the definition of resident.

11 AR: If a trustee is domiciled in Arkansas then the trustee is subject to Arkansas state tax. Arkansas has a three prong testwhich is used to determine residency. None of the factors listed above on their own is used to determine a taxpayer as a resident.Instead, a combination of these factors and others are used to determine domicile. See Arkansas Code 2.26–51–102(9).

12 CA: California taxes trusts based on the residence of the trustees and non–contingent beneficiaries. The trust taxation statutesdo not reference or differentiate between domicile and residency. A determination of residency will be based on all of the facts andcircumstances of a particular case. The situations described in these questions would all be factors used to determine whether atrustee is a resident of California.

13 CA: Id.14 CT: The residency of the trustee has no impact on whether the trust is subject to Connecticut income tax.15 DC: The residence or situs of the fiduciary does not control the classification of estates and trusts as resident or nonresident

under the provisions of §47–1809.02 (2016).16 HI: See §18–235–1.17, HAR.17 HI: Id.18 HI: Id.19 HI: Id.20 HI: See §18–235–1.07(e). Presence in Hawaii more than 200 days raises presumption of residency, thus, presence for less than

200 therefore will not raise such a presumption on its own, but is relevant.21 HI: See §18–235–1.17, HAR.22 HI: Id.





Lives,but not

domiciled,in state3

Maintainspermanent

place ofabode4


In state1 to 182

days6


In state1 to 182

days8


Response23No

Response24No

Response25No

Response26


Iowa27 No Yes Yes Yes No Yes Yes

Kansas28 Yes No No Yes No Yes No


Maine29No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland30 Yes Yes Yes Yes No Yes No

Massachusetts31 Yes No No No No Depends Depends


Minnesota No No No No No No No

Mississippi Yes No Yes Yes Yes Yes Yes

Missouri No No No No No No No

23 IL: Not enough information.24 IL: Id.25 IL: Id.26 IL: Id.27 IA: The residence of the trustee or a majority of the trustees is one factor in determining the situs of the trust, but where the

trust is administered is a key consideration. Whether the residence of one trustee would trigger an Iowa filing requirement, woulddepend on how many other trustees there were, and where they were located.

28 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.29 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


30 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax–General Section10–101(k)(1)(iii)). For a trust, a resident fiduciary may be considered a resident fiduciary for several reasons, including if the trustis principally administered in Maryland. There is no statutory or regulatory definition for the term ‘‘principally administered.’’ Of-ten the determination is made based on the facts and circumstances of the trust. However, the following common situations will re-gard the trust as ‘‘principally administered’’ in Maryland: (1) the trustee lives in Maryland; (2) the trustee’s office where he or shemakes decisions regarding the trust is located in Maryland; or (3) Majority of the trust assets are located in Maryland. This is notan exhaustive list, and there may be exceptions to the rules set forth.


32 MI: A trustee’s domicile is generally not a factor for evaluating a trust’s residency in Michigan under current Michigan law. A trustee’s domicile mayonly be considered in certain limited circumstances for resident trusts. See Blue v. Michigan Department of Treasury, 185 Mich App 406; 462 NW2d762 (1990).





Lives,but not

domiciled,in state3

Maintainspermanent

place ofabode4


In state1 to 182

days6


In state1 to 182

days8

Montana33 Yes No Yes No No Yes Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No No No No






Oregon Yes No YesNo

Response34 No35No

Response36 No37

Rhode Island No No No No No No No

South Carolina Yes Yes Yes Yes Yes Yes Yes

Tennessee Yes Yes Yes Yes Yes Yes Yes

Utah38 Yes Yes Yes Yes Yes Yes Yes



34 OR: Greater than 200 days and permanent place of abode. Trust filing obligations are determined by residency status or do-micile of the trustee, and taxable income or gross income from Oregon sources, per Oregon Revised Statutes (ORS) 316.027, 316.362and 316.282 and Oregon Administrative Rule (OAR) 150–316.282.


36 OR: Greater than 200 days and permanent place of abode. Trust filing obligations are determined by residency status or do-micile of the trustee, and taxable income or gross income from Oregon sources, per Oregon Revised Statutes (ORS) 316.027, 316.362and 316.282 and Oregon Administrative Rule (OAR) 150–316.282.


38 UT: A Trustee’s contacts with the state of Utah establishes a rebuttable presumption that the Trust is being administered inUtah and is thus a Resident Trust. Pursuant to Utah Code §75-7-107(4), a trust shall be considered to be administered in this stateif: (a) the trust states that this state is the place of administration, and any administration of the trust is done in this state; or (b) theplace of business where the fiduciary transacts a major portion of its administration of the trust is in this state. Pursuant to UtahCode §75-7-108(1), without precluding other means for establishing a sufficient connection with the designated jurisdiction, termsof a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of business islocated in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the designatedjurisdiction.





Lives,but not

domiciled,in state3

Maintainspermanent

place ofabode4


In state1 to 182

days6


In state1 to 182

days8

Virginia39 Yes40 Yes41 Yes42 Yes43 Yes44 Yes45 Yes46

West Virginia47 Yes No No No No Yes No

Wisconsin48 No No No No No No No

39 VA: A trust is a resident trust if it is administered in Virginia. A trust is administered in Virginia if its fiduciary is a Virginiaresident. Va. Code §58.1–302 defines ‘‘resident’’ as a person domiciled in Virginia at any time during the taxable year and any per-son who maintains his place of abode in Virginia for over 183 days. ‘‘Domicile’’ means the permanent place of residence of a tax-payer and the place to which he intends to return even though he may actually reside elsewhere. The factors considered in deter-mining whether an individual is domiciled in Virginia include his expressed intent, conduct, and all attendant circumstances, in-cluding: financial independence, business pursuits, employment, income sources, residence for federal income tax purposes, maritalstatus, residence of his parents, spouse, and children, location of his leasehold, sites of personal and real property owned by the in-dividual, where his motor vehicle and other personal property are registered, residence for purposes of voting, and other factors asmay be reasonably deemed necessary to determine the person’s domicile (see Va. Code §58.1–302).

40 VA: The trustee is domiciled in Virginia, so the trust is a resident trust subject to Virginia taxation.41 VA: The trustee is an actual resident of Virginia if he is physically present in the Commonwealth for more than 183 days dur-

ing the taxable year.42 VA: The trustee is domiciled in Virginia, so the trust is a resident trust subject to Virginia taxation.43 VA: The trustee is an actual resident of Virginia, so the trust is a resident trust subject to Virginia taxation.44 VA: The trustee is a resident of Virginia if he is domiciled in Virginia.45 VA: The trustee is domiciled in Virginia, so the trust is a resident trust subject to Virginia taxation.46 VA: Id.47 WV: See W.Va. Code of State Rules §110CSR21.7.3.48 WI: A trust that became irrevocable before October 29, 1999, is resident where it is administered. The following inter vivos

trusts that become irrevocable on or after October 29, 1999, or that became irrevocable before October 29, 1999, and are first ad-ministered in Wisconsin on or after October 29, 1999, are resident of Wisconsin: s Trusts, or portions of trusts, the assets of whichconsist of property placed in the trust by a person who is a resident of Wisconsin at the time that the property was placed in thetrust if, at the time that the assets were placed in the trust, the trust was irrevocable. s Trusts, or portions of trusts, the assets ofwhich consist of property placed in the trust by a person who is a resident of Wisconsin at the time that the trust became irrevo-cable if, at the time that the property was placed in the trust, the trust was revocable. A trust is revocable if the person whose prop-erty constitutes the trust may revest title to the property in that person. A trust is irrevocable if the power to revest title does notexist. See sec. 71.14, Wis. Stats.




Does not maintainpermanent placeof abode but is:

State1


In state1 to 182

days3Registered

to vote4

Holds validdriver’slicense5

Courtappointedtrustee6

Corporatetrustee with

in–state office7

Conductsbusinessin state8

Alabama9No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona10 No No No No No No Yes

Arkansas11 No No No No No Yes No

California Depends Depends Yes12 Depends13 Depends14 Depends15 Depends16



Georgia Yes Depends Yes Yes No Yes Depends



2 A trustee spent 183 days or more in your state, but does not maintain a permanent place of abode in your state.3 A trustee spent less than 183 days (i.e., one to 182 days) in your state, but does not maintain a permanent place of abode in

your state.4 A trustee is registered to vote in your state.5 A trustee has a valid driver’s license issued by your state.6 A trustee was appointed by your state court during the year.7 A trustee is a corporation, partnership or other entity that has an office for conducting trust business in your state.8 A trustee conducts business in your state.9 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-


resident. If there is a corporate fiduciary the trust is a resident trust if the administration of the trust is in Arizona. See A.R.S. 431301.See ITP 912 regarding the determination of residency and A.R.S. 43104.10 for the definition of resident.

11 AR: If a trustee is domiciled in Arkansas then the trustee is subject to Arkansas state tax. Arkansas has a three prong testwhich is used to determine residency. None of the factors listed above on their own is used to determine a taxpayer as a resident.Instead, a combination of these factors and others are used to determine domicile. See Arkansas Code 2.26–51–102(9).

12 CA: California taxes trusts based on the residence of the trustees and noncontingent beneficiaries. The trust taxation statutesdo not reference or differentiate between domicile and residency. A determination of residency will be based on all of the facts andcircumstances of a particular case. The situations described in these questions would all be factors used to determine whether atrustee is a resident of California.

13 CA: Id.14 CA: Id.15 CA: Id.16 CA: Id.17 CT: The residency of the trustee has no impact on whether the trust is subject to Connecticut income tax.18 DC: The residence or situs of the fiduciary does not control the classification of estates and trusts as resident or nonresident

under the provisions of §47–1809.02 (2016).




State1


In state1 to 182

days3Registered

to vote4




in–state office7


Hawaii Yes19 No20 Yes21 Yes22 Yes23 Yes24 No


IllinoisNo

Response25No

Response26No

Response27No

Response28 YesNo

Response29No

Response30


Iowa31 Yes No No No Yes No No

Kansas32 Yes No Yes Yes Yes Yes No


Maine33No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland34 Yes No Yes Yes No Yes Yes

Massachusetts35 Depends Depends No No No No No

19 HI: See §182351.17, HAR.20 HI: See §182351.07(e). Presence in Hawaii more than 200 days raises presumption of residency, thus, presence for less than

200 therefore will not raise such a presumption on its own, but is relevant.21 HI: See §182351.17, HAR. Residency is a prerequisite to voter registration.22 HI: See §182351.17, HAR.23 HI: Id.24 HI: Id.25 IL: Not enough information.26 IL: Id.27 IL: Id.28 IL: Id.29 IL: Id.30 IL: Id.31 IA: The residence of the trustee or a majority of the trustees is one factor in determining the situs of the trust, but where the


32 KS: See K.S.A. 7932,109(b) and K.A.R. 92124a.33 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income


34 MD: A trust is taxed as a Maryland resident fiduciary if it is principally administered in the State (see Tax General Section 10-101(k)(1)(iii)). For a trust, a resident fiduciary may be considered a resident fiduciary for several reasons, including if the trust isprincipally administered in Maryland. There is no statutory or regulatory definition for the term ‘‘principally administered.’’ Oftenthe determination is made based on the facts and circumstances of the trust. However, the following common situations will regardthe trust as ‘‘principally administered’’ in Maryland: (1) the trustee lives in Maryland; (2) the trustee’s office where he or she makesdecisions regarding the trust is located in Maryland; or (3) Majority of the trust assets are located in Maryland. This is not an ex-haustive list, and there may be exceptions to the rules set forth.

35 MA: Generally, to subject a trust to the taxing jurisdiction of Massachusetts, the following requirements must be met: 1. Non-Resident Trust: must have Mass source income. 2. Resident Trusts: In determining whether either an a. Testamentary Trust—a trustunder the will of an individual who died a Mass resident; or b. Inter Vivos Trust—a trust created during life of the grantor; is sub-ject to Massachusetts taxation, the following conditions must present to tax the trust: 1. At least one trustee, if more than 1, mustbe a resident of Massachusetts; and, 2. the grantor, or at least one, if more than one, must have been a Mass resident at the time




State1


In state1 to 182

days3Registered

to vote4




in–state office7




Mississippi No No Yes Yes Yes Yes Yes


Montana37 No No No No Yes Yes Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No No Yes38 No






Oregon No39 No40 Yes Yes Yes Yes Yes


South Carolina Yes Yes Yes Yes No Yes No




the trust was create; or the grantor, or at least one of them, if more than one, reside in Mass during any part of the year for whichthe income is computed; or the grantor or at least one of them, died a Mass resident.



38 NJ: See Publication GIT-12 Page 2 (Institutional Trustees) http://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git12.pdf.39 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income

from Oregon sources, per Oregon Revised Statutes (ORS) 316.027, 316.362 and 316.282 and Oregon Administrative Rule (OAR)150316.282.

40 OR: Id.41 UT: A Trustee’s contacts with the state of Utah establishes a rebuttable presumption that the Trust is being administered in

Utah and is thus a Resident Trust. Pursuant to Utah Code §75-7-107(4), a trust shall be considered to be administered in this stateif: (a) the trust states that this state is the place of administration, and any administration of the trust is done in this state; or (b) theplace of business where the fiduciary transacts a major portion of its administration of the trust is in this state. Pursuant to UtahCode §75-7-108(1), without precluding other means for establishing a sufficient connection with the designated jurisdiction, termsof a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of business islocated in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the designatedjurisdiction.




State1


In state1 to 182

days3Registered

to vote4




in–state office7


Virginia Yes42 No43 No44 No45 Yes46 Yes No47

West Virginia48 No No No No No No No


42 VA: A trust is a resident trust if it is administered in Virginia. A trust is administered in Virginia if its fiduciary is a Virginiaresident. Va. Code §58.1-302 defines ‘‘resident’’ as a person domiciled in Virginia at any time during the taxable year and any per-son who maintains his place of abode in Virginia for over 183 days. ‘‘Domicile’’ means the permanent place of residence of a tax-payer and the place to which he intends to return even though he may actually reside elsewhere. The factors considered in deter-mining whether an individual is domiciled in Virginia include his expressed intent, conduct, and all attendant circumstances, in-cluding: financial independence, business pursuits, employment, income sources, residence for federal income tax purposes, maritalstatus, residence of his parents, spouse, and children, location of his leasehold, sites of personal and real property owned by the in-dividual, where his motor vehicle and other personal property are registered, residence for purposes of voting, and other factors asmay be reasonably deemed necessary to determine the person’s domicile (see Va. Code §58.1-302). The trustee is an actual residentof Virginia, so the trust is a resident trust subject to Virginia taxation.

43 VA: A trust is a resident trust if it is administered in Virginia. A trust is administered in Virginia if its fiduciary is a Virginiaresident. Va. Code §58.1-302 defines ‘‘resident’’ as a person domiciled in Virginia at any time during the taxable year and any per-son who maintains his place of abode in Virginia for over 183 days. ‘‘Domicile’’ means the permanent place of residence of a tax-payer and the place to which he intends to return even though he may actually reside elsewhere. The factors considered in deter-mining whether an individual is domiciled in Virginia include his expressed intent, conduct, and all attendant circumstances, in-cluding: financial independence, business pursuits, employment, income sources, residence for federal income tax purposes, maritalstatus, residence of his parents, spouse, and children, location of his leasehold, sites of personal and real property owned by the in-dividual, where his motor vehicle and other personal property are registered, residence for purposes of voting, and other factors asmay be reasonably deemed necessary to determine the person’s domicile (see Va. Code §58.1-302). The trustee is neither an actualresident nor a domiciliary resident, so the trust is a nonresident trust not subject to Virginia taxation.

44 VA: A trust is a resident trust if it is administered in Virginia. A trust is administered in Virginia if its fiduciary is a Virginiaresident. Va. Code §58.1-302 defines ‘‘resident’’ as a person domiciled in Virginia at any time during the taxable year and any per-son who maintains his place of abode in Virginia for over 183 days. ‘‘Domicile’’ means the permanent place of residence of a tax-payer and the place to which he intends to return even though he may actually reside elsewhere. The factors considered in deter-mining whether an individual is domiciled in Virginia include his expressed intent, conduct, and all attendant circumstances, in-cluding: financial independence, business pursuits, employment, income sources, residence for federal income tax purposes, maritalstatus, residence of his parents, spouse, and children, location of his leasehold, sites of personal and real property owned by the in-dividual, where his motor vehicle and other personal property are registered, residence for purposes of voting, and other factors asmay be reasonably deemed necessary to determine the person’s domicile (see Va. Code §58.1-302). These factors alone are not suf-ficient to establish domiciliary residence. However, if other factors are present that establish domicile, the trust would be consid-ered a resident trust subject to Virginia taxation.

45 VA: Id.46 VA: A trust is administered in Virginia if it is under the supervision of a Virginia court. See 23 VAC 10–115–10. A trust admin-

istered in Virginia is a resident trust subject to Virginia taxation.47 VA: No, unless the business is related to the administration of the trust.48 WV: See W.Va. Code of State Rules §110CSR21.7.3.49 WI: A trust that became irrevocable before October 29, 1999, is resident where it is administered. The following inter vivos





Multiple individual trustees, less than one–half of whom:


Live, but notdomiciled, in state3

Registeredto vote4

Hold validdriver’s license5

Maintain permanentplace of abode6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



California Yes Yes Yes Depends Depends



Georgia Depends Depends Depends Depends Depends



Illinois13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Iowa14 No No No No No

Kansas15 Yes No Yes Yes No



2 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom are domiciled in your state.3 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom live, but are not domiciled, in

your state.4 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom are registered to vote in your

state.5 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom have a valid driver’s license

from your state.6 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom maintain a permanent place

of abode in your state.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.8 AZ: As long as one fiduciary/trustee is an Arizona resident, a trust with multiple trustees is a resident trust.9 AR: If a trustee is domiciled in Arkansas then the trustee is subject to Arkansas state tax. Arkansas has a three prong test which

is used to determine residency. None of the factors listed above on their own is used to determine a taxpayer as a resident. Instead,a combination of these factors and others are used to determine domicile. See Arkansas Code 2.26–51–102(9).

10 CT: The residency of the trustee has no impact on whether the trust is subject to Connecticut income tax.11 DC: The residence or situs of the fiduciary does not control the classification of estates and trusts as resident or nonresident

under the provisions of §47–1809.02 (2016).12 HI: Under §18–235–1.17, HAR, if the administration is carried on in the state, the trust will be a resident trust notwithstanding

less than half of trustees being nonresidents.13 IL: Not enough information.14 IA: The residence of the trustee or a majority of the trustees is one factor in determining the situs of the trust, but where the


15 KS: See K.S.A. 79–32,109(b) and K.A.R. 92–12–4a.






Registeredto vote4




Maine16No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




Minnesota No No No No No

Mississippi Yes No Yes Yes Yes



NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response





Ohio No No No No No


16 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable incomeof the trust. A Maine resident trust is a trust created by a person, or by will of a decedent, who at death was domiciled in Maine. Allother trusts are considered nonresident trusts. A Maine income tax return must be filed if the trust has: (a) Maine taxable income;(b) gross income exceeding $10,000 if a resident trust or a nonresident trust with Maine-source income—even if the trust does notincur a Maine income tax liability; or (c) a Maine tax liability (including any tax credit recapture amount). The Maine taxable in-come of a resident trust is equal to the federal taxable income of the trust, plus or minus the fiduciary adjustment (income modifi-cations). The Maine taxable income of a nonresident trust is equal to the trust’s share of distributable net income derived fromMaine sources, plus or minus the fiduciary adjustment. The Maine-source income of a nonresident trust is determined in the samemanner as the Maine-source income is determined for a nonresident individual. See 36 M.R.S. §§5102(3) & (4), 5142, 5163-5176 and5220(3) & (4). See also Maine Rule 806.










Registeredto vote4



Oregon21No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


South Carolina Yes Yes Yes Yes Yes





West Virginia24 No No No No No

Wisconsin25 No No No No No


22 UT: A Trustee’s contacts with the state of Utah establishes a rebuttable presumption that the Trust is being administered inUtah and is thus a Resident Trust. Pursuant to Utah Code §75-7-107(4), a trust shall be considered to be administered in this stateif: (a) the trust states that this state is the place of administration, and any administration of the trust is done in this state; or (b) theplace of business where the fiduciary transacts a major portion of its administration of the trust is in this state. Pursuant to UtahCode §75-7-108(1), without precluding other means for establishing a sufficient connection with the designated jurisdiction, termsof a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of business islocated in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the designatedjurisdiction.

23 VA: Virginia law makes a distinction between co–trustees that serve on a committee required to make joint decisions and co–trustees that have independent authority to make decisions on behalf of the trust. See P.D. 14–49, 13–18, 07–164, and 02–121. Theanswers to [these questions] specifically assume a committee structure. ‘‘Where a Committee administers a trust and the membersof that Committee cannot exercise control of the trust individually, so long as the Committee does not operate in Virginia or is notcontrolled in Virginia, membership in the Committee by a Virginia resident or residents would not make the trust a resident trustfor Virginia income tax purposes.’ ’’ See P.D. 07–164 (citing P.D. 02–101). Note, however, that if any of the co–trustees possessedindependent authority to make decisions on behalf of the trust, the answers would be the same as those for [the questions address-ing a group of individual trustees in which the facts of the question apply to at least half of the trustees.]

24 WV: See W.Va. Code of State Rules §110CSR21.7.3.25 WI: A trust that became irrevocable before October 29, 1999, is resident where it is administered. The following inter vivos






Maintain permanentplace of abode and are:

Do not maintainpermanent placeof abode but are:

State1In state 183

days or more2In state 1 to182 days3

In state 183days or more4

In state 1 to182 days5



Alabama8No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona9 Yes Yes Yes Yes Yes Yes

Arkansas10 No No No No No No

California Yes No Yes Depends Depends Depends

Connecticut11 No No No No No No

District of Columbia12 No No No No No No

Georgia Depends Depends Depends Depends Depends Depends



Illinois14No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Iowa15 No No No No No No



2 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom were present in your statefor 183 days or more.

3 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom were present in your statefor less than 183 days (i.e., one to 182 days).

4 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom maintain a permanent placeof abode in your state and were present in your state for 183 days or more.

5 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom maintain a permanent placeof abode in your state and were present in your state for less than 183 days (i.e., one to 182 days).

6 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom were present in your statefor 183 days or more, but do not maintain a permanent place of abode in your state.

7 The trust has more than one trustee, all of whom are individuals, and less than one–half of whom were present in your statefor less than 183 days (i.e., one to 182 days), but do not maintain a permanent place of abode in your state.


9 AZ: As long as one fiduciary/trustee is an Arizona resident, a trust with multiple trustees is a resident trust.10 AR: If a trustee is domiciled in Arkansas then the trustee is subject to Arkansas state tax. Arkansas has a three prong test

which is used to determine residency. None of the factors listed above on their own is used to determine a taxpayer as a resident.Instead, a combination of these factors and others are used to determine domicile. See Arkansas Code 2.26–51–102(9).


under the provisions of §47–1809.02 (2016).13 HI: Under §18–235–1.17, HAR, if the administration is carried on in the state, the trust will be a resident trust notwithstanding

less than half of trustees being nonresidents.14 IL: Not enough information.15 IA: The residence of the trustee or a majority of the trustees is one factor in determining the situs of the trust, but where the







State1In state 183






Kansas16 Yes No Yes No Yes No


Maine17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland18 No No No No No No

Massachusetts19 No No Yes Depends Yes Depends


Minnesota No No No No No No

Mississippi Yes Yes Yes Yes No No

Missouri No No No No No No

Montana21 No No No No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No No No
















State1In state 183






Oklahoma No No No No No No

Oregon22No

Response23No

ResponseNo

Response24No

ResponseNo

Response25No

Response

Rhode Island No No No No No No

South Carolina Yes Yes Yes Yes Yes Yes

Tennessee Yes Yes Yes Yes Yes Yes

Utah26 Yes Yes Yes Yes Yes Yes


Virginia27 No No No No No No

West Virginia28 No No No No No No

Wisconsin29 No No No No No No


23 OR: More than 200 days in Oregon.24 OR: Id.25 OR: Id.26 UT: A Trustee’s contacts with the state of Utah establishes a rebuttable presumption that the Trust is being administered in


27 VA: Virginia law makes a distinction between co–trustees that serve on a committee required to make joint decisions and co–trustees that have independent authority to make decisions on behalf of the trust. See P.D. 14–49, 13–18, 07–164, and 02–121. Theanswers to [these questions] specifically assume a committee structure. ‘‘Where a Committee administers a trust and the membersof that Committee cannot exercise control of the trust individually, so long as the Committee does not operate in Virginia or is notcontrolled in Virginia, membership in the Committee by a Virginia resident or residents would not make the trust a resident trustfor Virginia income tax purposes.’ ’’ See P.D. 07–164 (citing P.D. 02–101). Note, however, that if any of the co–trustees possessedindependent authority to make decisions on behalf of the trust, the answers would be the same as those for [the questions address-ing a group of individual trustees in which the facts of the question apply to at least half of the trustees.]

28 WV: See W.Va. Code of State Rules §110CSR21.7.3.29 WI: A trust that became irrevocable before October 29, 1999, is resident where it is administered. The following inter vivos





Multiple individual trustees, at least one–half of whom:


Live, but arenot domiciled,

in state3Registered

to vote4

Hold validdriver’slicense5

Maintainpermanent

place of abode6



Alabama9No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona10 Yes Yes Yes Yes Yes Yes Yes

Arkansas11 No No No No No No No

California Yes Yes Yes Depends Depends Yes No



Georgia Depends Depends Depends Depends Depends Depends Depends

Hawaii14 Yes Yes Yes Yes Yes Yes No


Illinois15No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




2 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom are domiciled in your state.3 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom live, but are not domiciled, in

your state.4 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom are registered to vote in your

state.5 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom have a valid driver’s license

from your state.6 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom maintain a permanent place of

abode in your state.7 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom were present in your state for

183 days or more.8 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom were present in your state for

less than 183 days (i.e., one to 182 days).9 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.10 AZ: As long as one fiduciary/trustee is an Arizona resident, a trust with multiple trustees is a resident trust.11 AR: If a trustee is domiciled in Arkansas then the trustee is subject to Arkansas state tax. Arkansas has a three prong test

which is used to determine residency. None of the factors listed above on their own is used to determine a taxpayer as a resident.Instead, a combination of these factors and others are used to determine domicile. See Arkansas Code 2.26–51–102(9).


under the provisions of §47–1809.02 (2016).14 HI: See §18-235-1.17, HAR.15 IL: Not enough information.






in state3Registered

to vote4


Maintainpermanent

place of abode6



Iowa16 Yes Yes No No No No No

Kansas17 Yes No Yes Yes No Yes No


Maine18No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland19 Yes Yes Yes Yes Yes Yes No

Massachusetts20 Yes Depends Depends Depends No Yes Depends



Mississippi Yes No Yes Yes Yes Yes Yes


Montana22 Yes No No No Yes No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

New Jersey No No No No No No No


16 IA: The residence of the trustee or a majority of the trustees is one factor in determining the situs of the trust, but where thetrust is administered is a key consideration. Whether the residence of one trustee would trigger an Iowa filing requirement, woulddepend on how many other trustees there were, and where they were located.












in state3Registered

to vote4


Maintainpermanent

place of abode6







Oregon23No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response24No

Response


South Carolina Yes Yes Yes Yes Yes Yes Yes




Virginia26 Yes27 Yes28 No29 No30 Yes31 Yes32 Yes

West Virginia33 Yes No No No No No No



24 OR: More than 200 days in Oregon.25 UT: A Trustee’s contacts with the state of Utah establishes a rebuttable presumption that the Trust is being administered in


26 VA: Virginia law makes a distinction between co–trustees that serve on a committee required to make joint decisions and co–trustees that have independent authority to make decisions on behalf of the trust. See P.D. 14–49, 13–18, 07–164, and 02–121. Note,however, that the number of co–trustees is irrelevant if any of them possess independent authority to make decisions on behalf ofthe trust.

27 VA: At least one–half of the trustees are domiciled in Virginia, so the trust is a resident trust subject to Virginia taxation.28 VA: At least one–half of the trustees are actual residents of Virginia if they are physically present in the Commonwealth for

more than 183 days during the taxable year.29 VA: These factors alone are not sufficient to establish domiciliary residence of at least one–half of the trustees. However, if

other factors are present that establish domicile, the trust would be considered a resident trust subject to Virginia taxation.30 VA: Id.31 VA: At least one–half of the trustees are domiciled in Virginia, so the trust is a resident trust subject to Virginia taxation.32 VA: At least one–half of the trustees are actual residents of Virginia, so the trust is a resident trust subject to Virginia taxation.33 WV: See W.Va. Code of State Rules §110CSR21.7.3.34 WI: A trust that became irrevocable before October 29, 1999, is resident where it is administered. The following inter vivos






Maintain permanent placeof abode and are:

Do not maintain permanentplace of abode but are:

State1In state 183




Non–trustee withpower over trustdomiciled in or

resident of state6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



California Yes Depends Depends Depends Depends



Georgia Depends Depends Depends Depends Depends

Hawaii Yes12 Yes13 Yes14 No15 Yes


Illinois16No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response




2 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom maintain a permanent place ofabode in your state and were present in your state for 183 days or more.

3 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom maintain a permanent place ofabode in your state and were present in your state for less than 183 days (i.e., one to 182 days).

4 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom were present in your state for183 days or more, but do not maintain a permanent place of abode in your state.

5 The trust has more than one trustee, all of whom are individuals, and at least one–half of whom were present in your state forless than 183 days (i.e., one to 182 days), but do not maintain a permanent place of abode in your state.

6 A person with power over the trust other than the trustee, such as a trust protector, is domiciled in, or a resident of, your state.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.8 AZ: As long as one fiduciary/trustee is an Arizona resident, a trust with multiple trustees is a resident trust.9 AR: If a trustee is domiciled in Arkansas then the trustee is subject to Arkansas state tax. Arkansas has a three prong test which

is used to determine residency. None of the factors listed above on their own is used to determine a taxpayer as a resident. Instead,a combination of these factors and others are used to determine domicile. See Arkansas Code 2.26–51–102(9).


under the provisions of §47–1809.02 (2016).12 HI: See §18-235-1.17, HAR.13 HI: Id.14 HI: Id.15 HI: Id.16 IL: Not enough information.






State1In state 183





resident of state6

Iowa17 Yes Yes Yes No No

Kansas18 Yes No Yes No Yes


Maine19No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Maryland20 Yes No Yes No Yes

Massachusetts21 Yes Depends Yes Depends Depends



Mississippi Yes Yes No No Yes


Montana23 Yes Yes No No Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

17 IA: The residence of the trustee or a majority of the trustees is one factor in determining the situs of the trust, but where thetrust is administered is a key consideration. Whether the residence of one trustee would trigger an Iowa filing requirement, woulddepend on how many other trustees there were, and where they were located.












State1In state 183





resident of state6





Ohio No No No No No


OregonNo

Response24No

Response25No

Response26No

Response27 Yes28


South Carolina Yes Yes Yes YesNo

Response




24 OR: More than 200 days in Oregon. Trust filing obligations are determined by residency status or domicile of the trustee, andtaxable income or gross income from Oregon sources, per Oregon Revised Statutes (ORS) 316.027, 316.362 and 316.282 and Or-egon Administrative Rule (OAR) 150–316.282.


26 OR: More than 200 days in Oregon. Trust filing obligations are determined by residency status or domicile of the trustee, andtaxable income or gross income from Oregon sources, per Oregon Revised Statutes (ORS) 316.027, 316.362 and 316.282 and Or-egon Administrative Rule (OAR) 150–316.282.


28 OR: Assume the ‘‘majority’’ of the administration is by the trust protector.29 UT: A Trustee’s contacts with the state of Utah establishes a rebuttable presumption that the Trust is being administered in

Utah and is thus a Resident Trust. Pursuant to Utah Code §75-7-107(4) A trust shall be considered to be administered in this stateif: (a) the trust states that this state is the place of administration, and any administration of the trust is done in this state; or (b) theplace of business where the fiduciary transacts a major portion of its administration of the trust is in this state. Pursuant to UtahCode §75-7-108(1) Without precluding other means for establishing a sufficient connection with the designated jurisdiction, termsof a trust designating the principal place of administration are valid and controlling if: (a) a trustee’s principal place of business islocated in or a trustee is a resident of the designated jurisdiction; or (b) all or part of the administration occurs in the designatedjurisdiction.






State1In state 183





resident of state6

Virginia Yes30 Yes31 Yes32 No33 Yes34

West Virginia35 Yes No No No No

Wisconsin36 No No No No No

30 VA: Virginia law makes a distinction between co–trustees that serve on a committee required to make joint decisions and co–trustees that have independent authority to make decisions on behalf of the trust. See P.D. 14–49, 13–18, 07–164, and 02–121. Note,however, that the number of co–trustees is irrelevant if any of them possess independent authority to make decisions on behalf ofthe trust. At least one–half of the trustees are domiciled in Virginia, so the trust is a resident trust subject to Virginia taxation.

31 VA: Id.32 VA: Virginia law makes a distinction between co–trustees that serve on a committee required to make joint decisions and co–

trustees that have independent authority to make decisions on behalf of the trust. See P.D. 14–49, 13–18, 07–164, and 02–121. Note,however, that the number of co–trustees is irrelevant if any of them possess independent authority to make decisions on behalf ofthe trust. At least one–half of the trustees are actual residents of Virginia, so the trust is a resident trust subject to Virginia taxation.

33 VA: Virginia law makes a distinction between co–trustees that serve on a committee required to make joint decisions and co–trustees that have independent authority to make decisions on behalf of the trust. See P.D. 14–49, 13–18, 07–164, and 02–121. Note,however, that the number of co–trustees is irrelevant if any of them possess independent authority to make decisions on behalf ofthe trust. At least one–half of the trustees are neither actual nor domicilliary residents, so the trust is a nonresident trust not subjectto Virginia taxation.

34 VA: A trust is administered in Virginia if its fiduciary is a resident of Virginia. See 23 VAC 10–115–10. A trust administered inVirginia is a resident trust subject to Virginia taxation.

35 WV: See W.Va. Code of State Rules §110 CSR 21.7.3.36 WI: A trust that became irrevocable before October 29, 1999, is resident where it is administered. The following inter vivos




Nexus–Creating Activities: Resident Noncontingent Beneficiary (Part 1 of 2)


Lives, but notdomiciled,in state3

Maintainspermanent

place of abode4Registered

to vote5In state 183


Alabama8No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona No No No No No No


California9 Yes Yes Yes Yes Depends Depends

Connecticut10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia11 Yes No12 Yes Yes Yes No

Georgia13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response





2 A noncontingent beneficiary is domiciled in your state.3 A noncontingent beneficiary lives, but is not domiciled, in your state.4 A noncontingent beneficiary has a permanent abode in your state.5 A noncontingent beneficiary is registered to vote in your state.6 A noncontingent beneficiary was present in your state for 183 days or more.7 A noncontingent beneficiary was present in your state for less than 183 days (i.e., one to 182 days).8 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.9 CA: California taxes trusts based on the residency of the fiduciaries and the residency of the non–contingent beneficiaries. A

determination of residency will be based on all of the facts and circumstances of a particular case, of which domicile may be a fac-tor. The situations described in these questions would all be factors used to determine whether a noncontingent beneficiary is aresident of California.

10 CT: Conn. Gen. Stat. §12–701(a)(4) provides the if any trust or portion of a trust, other than a trust created by the will of a de-cedent, has one or more nonresident noncontingent beneficiaries, the Connecticut taxable income of the trust, as defined in subdi-vision (9) of this subsection, shall be modified as follows: The Connecticut taxable income of the trust shall be the sum of all suchincome derived from or connected with sources within this state and that portion of such income derived from or connected withall other sources which is derived by applying to all such income derived from or connected with all other sources a fraction thenumerator of which is the number of resident noncontingent beneficiaries and the denominator of which is the total number of non-contingent beneficiaries. For purposes of section 12–700a, if any trust or portion of a trust, other than a trust created by the will ofa decedent, has one or more nonresident noncontingent beneficiaries, its adjusted federal alternative minimum taxable income, asdefined in section 12–700a shall be modified as follows: The adjusted federal alternative minimum taxable income of the trust shallbe the sum of all such income derived from or connected with sources within this state and that portion of such income derivedfrom or connected with all other sources which is derived by applying to all such income derived from or connected with all othersources a fraction, the numerator of which is the number of resident noncontingent beneficiaries and the denominator of which isthe total number of noncontingent beneficiaries. As used in this subdivision, ‘‘noncontingent beneficiary’’ means a beneficiarywhose interest is not subject to a condition precedent.

11 DC: See DC Code §47–1801.04(42) (2015). Note: All answers are given, as if funds were not distributed.12 DC: Could be ‘‘YES’’ if they lived here for > 183 days.13 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors

and may subject a trust to taxation if the trust was setup to avoid Georgia taxes.14 HI: The residence or domicile of a beneficiary is not relevant to the resident status of a trust, however, a resident beneficiary

would be taxable on all income received from the trust and all other sources.





Maintainspermanent





Response15No

Response16No

Response17


Iowa No No No No No No

KansasNo

Response No No No No No


Maine18No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response





Mississippi Yes No Yes Yes Yes Yes

Missouri22 Yes No No Yes Yes No

Montana23 Yes No Yes No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


New Mexico No No No No No No

15 IL: Not enough information.16 IL: Id.17 IL: Id.18 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income




21 MI: A beneficiary’s domicile is not a factor for establishing a trust’s residency in Michigan under current Michigan law. A beneficia-ry’s domicile may be considered in certain limited circumstances for resident trusts. See Blue v. Michigan Department of Treasury, 185 Mich App406; 462 NW2d 762 (1990).

22 MO: See Section 143.331, RSMo and Section 456.1-103.1, RSMo.23 MT: See §1-1-215, MCA; §15-30-2101, MCA; ARM 42.2.304; ARM 42.30.101. The Department of Revenue’s responses are for general in-






Maintainspermanent




North Carolina Yes Yes24 No No Yes25 No







Tennessee27 Yes Yes Yes Yes Yes No




West Virginia Yes No No No No No


24 NC: An individual who resides in this State for more than a temporary or transitory purpose.25 NC: An individual present in this State for more than 183 days is presumed to be a resident absent convincing proof to the

contrary.26 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income


27 TN: Nonresident trusts with TN beneficiaries shall provide to each TN beneficiary a sworn statement showing the beneficia-ry’s TN taxable income arising from the trust. In such cases, the TN beneficiary shall file the return and the pay the tax due. An-swers assume that the noncontingent beneficiary received or had accrued or credited taxable income from the trust, and answer‘‘yes’’ if the trust should be prepared to provide sworn statements per Tenn. Code Ann. §67–2–111.

28 UT: Beginning in 2013, Utah resident trusts and estates or nonresident trusts and estates with Utah source income that dis-tribute that income to a beneficiary who is not a Utah resident individual may be required to withhold Utah income taxes on thedistribution (see Pub. 68 and 59–10 part 14)

29 VA: Under Va. Code §58.1–302 and 23 VAC 10–115–10, the Virginia domicile of a beneficiary does not create a resident trust.See P.D. 93–189. If, however, the trust is a resident trust on some other basis (i.e., because the grantor was domiciled in Virginia athis death and created a trust by will), the Virginia domicile of a beneficiary will create nexus for Virginia fiduciary income tax pur-poses.



Nexus–Creating Activities: Resident Noncontingent Beneficiary (Part 2 of 2)



State1


In state1 to 182

days3


In state1 to 182

days5


Income beneficiarywas domiciled, lived,

was registered to voteor held valid driver’s

license in state7

Alabama8No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



California9 Yes Depends Depends Depends Depends Depends

Connecticut10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

District of Columbia11 Yes Yes Yes No Yes Yes

Georgia12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



2 A noncontingent beneficiary maintains a permanent place of abode in your state and was present in your state for 183 days ormore.

3 A noncontingent beneficiary maintains a permanent place of abode in your state and was present in your state for less than 183days (i.e., one to 182 days).

4 A noncontingent beneficiary was present in your state for 183 days or more, but does not maintain a permanent place of abodein your state.

5 A noncontingent beneficiary was present in your state for less than 183 days (i.e., one to 182 days), but does not maintain apermanent place of abode in your state.

6 A noncontingent beneficiary holds a valid driver’s license issued by your state.7 An income beneficiary was domiciled in, lived in, was registered to vote in, or held a valid driver’s license issued by, your state

as of the last day of the taxable year.8 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.9 CA: California taxes trusts based on the residency of the fiduciaries and the residency of the non–contingent beneficiaries. A

determination of residency will be based on all of the facts and circumstances of a particular case, of which domicile may be a fac-tor. The situations described in these questions would all be factors used to determine whether a noncontingent beneficiary is aresident of California.

10 CT: Conn. Gen. Stat. §12–701(a)(4) provides the if any trust or portion of a trust, other than a trust created by the will of a de-cedent, has one or more nonresident noncontingent beneficiaries, the Connecticut taxable income of the trust, as defined in subdi-vision (9) of this subsection, shall be modified as follows: The Connecticut taxable income of the trust shall be the sum of all suchincome derived from or connected with sources within this state and that portion of such income derived from or connected withall other sources which is derived by applying to all such income derived from or connected with all other sources a fraction thenumerator of which is the number of resident noncontingent beneficiaries and the denominator of which is the total number of non-contingent beneficiaries. For purposes of section 12–700a, if any trust or portion of a trust, other than a trust created by the will ofa decedent, has one or more nonresident noncontingent beneficiaries, its adjusted federal alternative minimum taxable income, asdefined in section 12–700a shall be modified as follows: The adjusted federal alternative minimum taxable income of the trust shallbe the sum of all such income derived from or connected with sources within this state and that portion of such income derivedfrom or connected with all other sources which is derived by applying to all such income derived from or connected with all othersources a fraction, the numerator of which is the number of resident noncontingent beneficiaries and the denominator of which isthe total number of noncontingent beneficiaries. As used in this subdivision, ‘‘noncontingent beneficiary’’ means a beneficiarywhose interest is not subject to a condition precedent.

11 DC: See DC Code §47–1801.04(42) (2015). Note: All answers are given, as if funds were not distributed.12 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors






State1


In state1 to 182

days3


In state1 to 182

days5




license in state7



IllinoisNo

Response14No

Response15No

Response16No

Response17No

Response18 Yes



KansasNo

ResponseNo

ResponseNo

ResponseNo

Response No No


Maine19No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response






Missouri23 Yes No No No Yes Yes

13 HI: The residence or domicile of a beneficiary is not relevant to the resident status of a trust, however, a resident beneficiarywould be taxable on all income received from the trust and all other sources.

14 IL: Not enough information.15 IL: Id.16 IL: Id.17 IL: Id.18 IL: Id.19 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income





23 MO: See Section 143.331, RSMo and Section 456.1-103.1, RSMo.





State1


In state1 to 182

days3


In state1 to 182

days5




license in state7

Montana24 Yes Yes No No No Yes

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



North Carolina Yes25 No Yes26 No No Yes27







Tennessee29 Yes Yes Yes No Yes Yes




West Virginia Yes No No No No No


24 MT: See §1-1-215, MCA; §15-30-2101, MCA; ARM 42.2.304; ARM 42.30.101. The Department of Revenue’s responses are for general in-formational purposes only and are specific to the questions presented in the [Bloomberg] BNA trust nexus survey. The responses are not offered as and donot constitute written advice, legal advice or legal opinions of the Department of Revenue or the state of Montana.

25 NC: An individual present in this State for more than 183 days is presumed to be a resident absent convincing proof to thecontrary.

26 NC: Id.27 NC: The taxation of income from intangible sources or from sources outside of North Carolina is determined based on the

beneficiary’s state of residence on the last day of the taxable year.28 OR: Trust filing obligations are determined by residency status or domicile of the trustee, and taxable income or gross income



30 UT: Beginning in 2013, Utah resident trusts and estates or nonresident trusts and estates with Utah source income that dis-tribute that income to a beneficiary who is not a Utah resident individual may be required to withhold Utah income taxes on thedistribution (see Pub. 68 and 59–10 part 14).




Nexus–Creating Activities: Resident Contingent Beneficiary (Part 1 of 2)



Registeredto vote4


of abode5In state 183


Alabama8No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



California No No No No No No

Connecticut9 No No No No No No

District of Columbia10 No No No No No No

Georgia11No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



Illinois Yes YesNo

Response13No

Response14No

Response15No

Response16



KansasNo

Response No NoNo

Response No No


Maine17No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



2 A contingent beneficiary is domiciled in your state.3 A contingent beneficiary lives, but is not domiciled, in your state.4 A contingent beneficiary is registered to vote in your state.5 A contingent beneficiary maintains a permanent place of abode in your state.6 A contingent beneficiary was present in your state for 183 days or more.7 A contingent beneficiary was present in your state for less than 183 days (i.e., one to 182 days).8 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.9 CT: Contingent beneficiaries have no impact on whether a resident trust is subject to Connecticut income tax.10 DC: Residency of trust is based on whether trustor or decedent was domiciled in District or property of beneficiary is his.11 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors


would be taxable on all income received from the trust and all other sources.13 IL: Not enough information.14 IL: Id.15 IL: Id.16 IL: Id.17 ME: Trusts are subject to Maine income tax on the basis of two primary factors: (1) residency and (2) Maine taxable income

of the trust. A Maine resident trust is a trust created by a person, or by will of a decedent, who at death was domiciled in Maine. All





Registeredto vote4








Mississippi Yes No Yes Yes Yes Yes

Missouri No No No No No No

Montana21 Yes No No Yes No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response








Rhode Island No No No No No No


other trusts are considered nonresident trusts. A Maine income tax return must be filed if the trust has: (a) Maine taxable income;(b) gross income exceeding $10,000 if a resident trust or a nonresident trust with Maine-source income—even if the trust does notincur a Maine income tax liability; or (c) a Maine tax liability (including any tax credit recapture amount). The Maine taxable in-come of a resident trust is equal to the federal taxable income of the trust, plus or minus the fiduciary adjustment (income modifi-cations). The Maine taxable income of a nonresident trust is equal to the trust’s share of distributable net income derived fromMaine sources, plus or minus the fiduciary adjustment. The Maine-source income of a nonresident trust is determined in the samemanner as the Maine-source income is determined for a nonresident individual. See 36 M.R.S. §§5102(3) & (4), 5142, 5163-5176 and5220(3) & (4). See also Maine Rule 806.










Registeredto vote4




Tennessee23 Yes Yes Yes Yes Yes No




West Virginia No No No No No No




25 VA: Under Va. Code §58.1–302 and 23 VAC 10–115–10, the Virginia domicile of a beneficiary does not create a resident trust.See P.D. 93–189. IIf, however, the trust is a resident trust on some other basis (i.e., because the grantor was domiciled in Virginia athis death and created a trust by will), the Virginia domicile of a beneficiary will create nexus for Virginia fiduciary income tax pur-poses.



Nexus–Creating Activities: Resident Contingent Beneficiary (Part 2 of 2)


Does not maintain permanentplace of abode but is:

State1In state 183




Holds validdriver’s license6

Alabama7No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response

Arizona No No No No No


California No No No No No



Georgia10No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response



Illinois12No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


Iowa No No No No No

KansasNo

ResponseNo

ResponseNo

ResponseNo

Response No




2 A contingent beneficiary maintains a permanent place of abode in your state and was present in your state for 183 days ormore.

3 A contingent beneficiary maintains a permanent place of abode in your state and was present in your state for less than 183days (i.e., one to 182 days).

4 A contingent beneficiary was present in your state for 183 days or more, but does not maintain a permanent place of abode inyour state.

5 A contingent beneficiary was present in your state for less than 183 days (i.e., one to 182 days), but does not maintain a per-manent place of abode in your state.

6 A contingent beneficiary holds a valid driver’s license issued by your state.7 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.8 CT: Contingent beneficiaries have no impact on whether a resident trust is subject to Connecticut income tax.9 DC: Residency of trust is based on whether trustor or decedent was domiciled in District or property of beneficiary is his.10 GA: Georgia generally looks to the domicile of the fiduciary to determine if the trust is a resident trust and may use other factors


would be taxable on all income received from the trust and all other sources.12 IL: Not enough information.





State1In state 183





Maine13No

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response





Mississippi Yes Yes No No Yes


Montana17 Yes Yes No No No

NebraskaNo

ResponseNo

ResponseNo

ResponseNo

ResponseNo

Response


New Mexico No No No No No



Ohio No No No No No














State1In state 183






Tennessee19 Yes Yes Yes No Yes





Wisconsin No No No No No






Nexus–Creating Activities: Situs

State1

Trust containsreal propertyor tangible

personal property2

Trust contains interest in entityother than single-member LLC

owning real property or tangiblepersonal property3

Trust contains interest insingle-member LLC owningreal property or tangible

personal property4

Alabama5No

ResponseNo

ResponseNo

Response

Arizona Yes6 Yes7 Yes8

Arkansas Yes9 Yes10 Yes

California Yes11 Yes12No

Response

Connecticut Yes YesNo

Response

District of Columbia Yes13 Yes14 Yes

GeorgiaNo

ResponseNo

ResponseNo

Response

Hawaii15 No No No

Idaho No No No

Illinois YesNo

Response16 Yes



2 The trust contains real property or tangible property physically located in your state.3 The trust contains an interest in an entity, other than a single-member LLC, that owns real property or tangible property physically

located in your state.4 The trust contains an interest in a single-member LLC that owns real property or tangible personal property physically located in your state.5 AL: Alabama interprets nexus on a case–by–case basis and as broadly allowed under the Due Process Clause and the Com-

merce Clauses of the U.S. Constitution.6 AZ: Resident trusts and estates are taxable on all income. A nonresident trust is taxable only on its Arizona sourced income.

Arizona sourced income would include real or tangible personal property physically located in this state as well as intangible prop-erty to the extent it acquires business situs in this state. Please see A.R.S. 43–1301 and Arizona Administrative Code R15–2C–601 &R15–2C–602.

7 AZ: Id.8 AZ: See A.R.S. 29–857.9 AR: See 26–63–102(11). ‘‘Tangible personal property’’ means personal property that can be seen, weighed, measured, felt, or

touched or that is in any other manner perceptible to the senses; Tangible property located in Arkansas is taxable in Arkansas.10 AR: Id.11 CA: The trust will be taxable on all of its income from a California–source. If the income earned by the trust during the year

came from one of the sources listed above, that income would be taxable to the trust. The remaining income of the trust may betaxable as well, depending on the residence of the trustees and beneficiaries.

12 CA: Id.13 DC: Real Property – The place where the property is situated; if property was rental property during decedent’s lifetime, ‘‘Un-

incorporated Business Franchise Tax Return’’ should have been filed and taxes paid, if applicable. Tangible Personal Property – Theplace where the property is customarily located at the time of death.

14 DC: (a) Partnership Property – treated as intangible personal property regardless of the character of the property; for example,real state held by a partnership is intangible personal property and is taxable at the decedent’s domicile. (b) Business situs – intan-gible personal property used in a trade or business in the District has a taxable situs in the District regardless of the domicile of theowner. (c) Personal Trusts – assets held in a personal trust have a taxable situs in accordance with generally accepted situs rules.The trust entity is disregarded for purposes of determining taxability.

15 HI: Although situs is not relevant to resident status of the trust, it is relevant to Hawaii source income, which is taxable incomeeven for a nonresident trust.

16 IL: Not enough information.



State1


personal property2




personal property4

Indiana Yes Yes Yes

Iowa Yes Yes Yes

Kansas Yes No17 No

Louisiana No No No

Maine18No

ResponseNo

ResponseNo

Response

Maryland19 No20 No No

Massachusetts21 Depends Depends Depends

Michigan22 No No No

Minnesota Yes Yes Yes

Mississippi Yes Yes Yes

Missouri No No No

Montana23 Yes Yes Yes

NebraskaNo

ResponseNo

ResponseNo

Response

17 KS: A resident trust is any trust which is administered by the trustee in Kansas. A trust being administered outside of Kansasis not considered a resident trust merely because the governing instrument or a law requires that the laws of Kansas be followedwith respect to interpretation or administration of the trust. All other trusts are nonresident trusts. The fiduciary of a nonresidenttrust must file a Kansas fiduciary income tax return if the trust had taxable income or gain derived from Kansas sources. Incomefrom Kansas sources includes income or gain from: 1) real or tangible personal property located within Kansas; 2) a business pro-fession or occupation carried on within Kansas; or 3) services performed within Kansas. See K.S.A. 79-32,109(d).



20 MD: The exception is if the trust was created, or consists of property transferred by the will of a decedent who was domiciled in Maryland on thedate of the decedent’s death.


22 MI: The location of trust property is not used to establish residency of the trust in Michigan. Under MCL 206.18(1)(c) a resident trust is ‘‘any trustcreated by will of a decedent who at his death was domiciled in this state and any trust created by, or consisting of property of, a person domiciled in thisstate, at the time the trust becomes irrevocable.’’ However, the location of trust property may be relevant for treating certain resident trusts similar to non-resident trusts. See Blue v. Michigan Department of Treasury, 185 Mich App 406; 462 NW2d 762 (1990).




State1


personal property2




personal property4

New Jersey24 No No No

New Mexico Yes Yes Yes

North Carolina No No No

North Dakota Yes Yes Yes

Ohio Yes Yes Yes

Oklahoma Yes YesNo

Response

Oregon Yes Yes Yes

Rhode Island Yes Yes Yes

South Carolina Yes YesNo

Response

Tennessee25 Yes Yes Yes

Utah Yes26 No27 Yes28

Vermont Yes No Yes

Virginia29 Yes Yes Yes

West Virginia Yes30 No Yes31

Wisconsin Yes Yes32 Yes

24 NJ: See Form NJ-1041, Page 10.25 TN: Trust situs depends upon state law. Taxation depends upon state of administration.26 UT: The mere presence of trust assets within the state of Utah does not make the trust a resident trust. However, under 59-10-

136(3) it may be factor for consideration of nexus so long as a ‘‘major portion’’ of trust administration does not occur in anotherstate (see §75-7-204). Regardless of the residence of the trust any income derived from property located in the state is subject totaxation.

27 UT: Investment in entities external to the trust does not create sufficient nexus to establish residency for the trust itself, how-ever, any pass-through entity with Utah income must withhold Utah income taxes prior to making any income distribution to a trust.

28 UT: A trust with interest in a single-member LLC that owns real property or tangible personal property physically located in Utah in effect simplymeans the trust owns real property or tangible personal property physically located in Utah. This situation itself might not create sufficient nexus to estab-lish residency for the trust itself; however, regardless of the residence of the trust - any income derived from property located in the state (Utah SourceIncome) is subject to taxation.

29 VA: See 23 VAC 10–115–10. A trust that is being administered in Virginia is a resident trust. A trust or estate is ‘‘being admin-istered in Virginia’’ if, for example, its assets are located in Virginia, its fiduciary is a resident of Virginia, or it is under the super-vision of a Virginia court.

30 WV: See 110CSR21-38.2.31 WV: Id.32 WI: Nonresident trusts may be subject to tax on income sourced to WI per secs. 71.04(1)(a), 71.04(3)(b), 71.04(4) and 71.04(9), Wis. Stats.



Questionnaire

B. General Trust Nexus Policies

2015

Response

2016

Response

1. the state law governing the trust.

2. the location where the trust is administered.

3. the domicile/residency of the decedent whose will created the testamentary trust.

4. the domicile/residency of the trustor who created the inter vivos trust.

5. the domicile/residency of the trustee.

6. the domicile/residency of the beneficiary.

7. the situs of the trust.

a. worldwide income.

b. state-source income only.

A trust is subject to income tax in your state as a resident trust based on:

8. A resident trust is subject to income tax in your state on its

Section I. State Nexus Policies

Administrative pronouncement(s) addressing trust income tax nexus:

Statute(s) addressing trust income tax nexus:

Regulation(s) addressing trust income tax nexus:

A. State Statutes, Regulations, Judicial Decisions or Administrative Pronouncements Specifically

Addressing Trust Income Tax Nexus

Please identify any statute, regulation, case or administrative pronouncement that sets forth your state’s income tax nexus policy for trusts.

Judicial decision(s) addressing trust income tax nexus:

Comments: (Please indicate the question to which you are referring.)

QUESTIONNAIRE (Vol. 23, No. 9) S-149


C. Constitutional Limitations on Taxation of Trusts

2015

Response

2016

Response

1. applies Quill (i.e., requires that a trust have a physical presence in the state in order to

create nexus) when determining whether a trust is subject to taxation as a resident trust.

2. has binding judicial precedent addressing the consitutional limitations placed on your

state's ability to tax a trust as a resident trust (If yes, please include the case citation(s) in

the comments below.)

D. Nonresident & Part-year Resident Trusts (New for 2016)

2015

Response

2016

Response

1. Are nonresident trusts subject to taxation in your state? NEW

a. their state-source income only. NEW

b. something other than their state-source income. (If yes, please explain in the

comments below)NEW

3. Can trusts be subject to taxation as part-year resident trusts in your state? NEW

a. nonresident trusts for the entire year. NEW

b. resident trusts for the entire year. NEW

c. resident trusts only for the portion of the year that the trust was a resident. NEW

E. Credit for Taxes Paid to Other States (New for 2016)

2015

Response

2016

Response

1. Allows a resident trust to claim a credit for taxes paid to other states in which it is taxed

as a resident trust.NEW

2. Allows a resident trust to claim a credit for taxes paid to other states in which it is taxed

as a nonresident trust.NEW

3. Allows a nonresident trust to claim a credit for taxes paid to other states in which it is

taxed as a resident trust.NEW

4. Allows a nonresident trust to claim a credit for taxes paid to other states in which it is

taxed as a nonresident trust.NEW

Your state:



2. If "yes" to question 1, are nonresident trusts taxed on:

4. If "yes" to question 3, are part-year resident trusts taxed as:


Your state:

S-150 (Vol. 23, No. 9) QUESTIONNAIRE


A. Trust Administered in State

2015

Response

2016

Response

1. The trust document/will states that the governing law is that of your state.2. The trust was administered in your state at any time during the year.3. The principal administration of the trust is in your state.4. The trust accounting, bookkeeping, sales and purchases take place in your state.

5. The trust is administered by an entity that is licensed, registered, authorized or certified

to conduct business in your state. 6. The trust is administered by an entity that has registered to do business in your state,

but does not make sales or provide services in your state and lacks a physical presence

in your state.7. The trust is administered by an entity that lacks a physical presence in your state, but

makes $500,000 or more in annual sales in your state.8. The trust is administered by an entity that lacks a physical presence in your state, but

makes LESS THAN $500,000 in annual sales in your state.9. The trust is administered by an entity or individual who is registered to collect taxes

within your state.10. The trust fiduciary’s usual place of business is in your state, and the fiduciary is an individual or corporate trustee in the business of administering trusts.

11. The trust fiduciary's usual place of business is in your state, and the fiduciary is an

individual who is not otherwise engaged in the business of administering trusts.

12. The majority of the discretionary decisions regarding the investment of trust assets

are made in your state.13. The majority of the discretionary decisions regarding the distributions of trust income

and principal are made in your state.14. The majority of the nondiscretionary decisions regarding the investment of trust

assets or distributions of trust income and principal are made in your state.

15. The majority of the clerical administrative duties, such as writing checks, receiving

correspondence, gathering information or gathering and completing forms, are performed

in your state. 16. The trust has an investment or distribution committee used to make decisions

regarding investment of trust assets or distributions of trust income and principal, and

LESS THAN one-half of the committee members are located in your state.17. The trust has an investment or distribution committee used to make decisions

regarding investment of trust assets or distributions of trust income and principal, and AT

LEAST one-half of the committee members are located in your state.18. The trust assets are managed, or the investment decisions are made, by a corporate

trustee located in your state which is a member of an affiliated group with members

located throughout the country.19. The official books and records of the trust, consisting of original minutes of the trustee

meetings and original trust instruments, are located in your state.

Section II. Income Tax Nexus-Creating Activities For TrustsPlease indicate "Yes" or "No" to show whether the following activities or relationships would, by themselves, create

sufficient nexus to subject a trust to an income-based tax as a resident trust. Assume each item is the only

activity/relationship the trust has in your state. Also, assume that each activity or relationship is based on the tax

year at issue unless otherwise stated.



20. The trustees delegate discretionary decisions regarding the investment of trust

assets, trust distributions or the possession of the trust's official books and records to an

agent or custodian located in your state.

21. In the case of a trustee that is a corporate fiduciary engaged in interstate trust

administration, the majority of fiduciary decision making is made in your state.

22. The trust is administered by a corporate trustee through a call center located in your

state.

23. Does your state apply the rules used to determine the trust's principal place of

administration under the probate code, or other similar law governing the creation and

administration of trusts, when determining whether the trust is administed in your state for

trust income tax purposes?

NEW

B. Trust Created by Will of Domiciliary or Resident

2015

Response

2016

Response

1. The trust was created by the will of a testator or by a decedent who was domiciled in

your state as of the testator’s date of death.

2. The trust was created by the will of a testator or by a decedent who lived, but was not

domiciled, in your state as of the testator’s date of death. 3. The trust was created by the will of a testator or by a decedent who maintained a

permanent place of abode in your state in the year of the testator’s death.4. The trust was created by the will of a testator or by a decedent who was present in your

state for LESS THAN 183 days (i.e., one to 182 days) in the year of the testator’s death.5. The trust was created by the will of a testator or by a decedent who was present in your

state for 183 days or more in the year of the testator’s death.6. The trust was created by the will of a testator or by a decedent who maintained a

permanent place of abode in your state and was present in your state for LESS THAN

183 days (i.e., one to 182 days) in the year of the testator’s death.7. The trust was created by the will of a testator or by a decedent who maintained a

permanent place of abode in your state and was present in your state for 183 days or

more in the year of the testator’s death.8. The trust was created by the will of a testator or by a decedent who was present in your

state for LESS THAN 183 days (i.e., one to 182 days) in the year of the testator’s death, but did not maintain a permanent place of abode in your state.

9. The trust was created by the will of a testator or by a decedent who was present in your

state for 183 days or more in the year of the testator’s death, but did not maintain a permanent place of abode in your state.

10. The trust was created by the will of a testator or by a decedent who was registered to

vote in your state in the year of the testator’s death.11. The testator/decedent had a valid driver’s license issued by your state as of the date of the testator’s date of death.


If yes, please identify any statute, regulation or administrative pronouncement that provides a definition

or explanation of the term "domicile":




C. Irrevocable Inter Vivos Trust Created by Domiciliary or Resident

2015

Response

2016

Response

1. The trust was created by a trustor who was domiciled in your state at the time the trust

was created.

2. The trust consists of property of a person who was domiciled in your state at the time

the trust was created.

3. The trust was created by a trustor who was domiciled in your state at the time the

property was transferred to the trust.


the property was transferred to the trust.

5. The trustor was domiciled in your state at the time of both the creation of the trust and

the transfer of property to the trust.

6. The trust was created as a revocable trust but is now irrevocable, and the trustor was

domiciled in your state when the trust became irrevocable.

7. The trust was created as a revocable trust but is now irrevocable, and the trust consists

of property transferred by a person who was domiciled in your state when the trust

became irrevocable.

8. The trustor is domiciled in your state.

9. The trust consists of property of a person who is domiciled in your state.

10. The trustor was domiciled in your state as of his/her date of death.

11. The trust was created by a trustor who lived, but was not domiciled, in your state at

the time the trust was created.

12. The trust consists of property of a person who lived, but was not domiciled, in your

state at the time the trust was created.


the time the property was transferred to the trust.


state at the time the property was transferred to the trust.

15. The trustor lived, but was not domiciled, in your state at the time of both the creation

of the trust and the transfer of property to the trust.16. The trustor maintained a permanent place of abode in your state during the year the

trust was created or the year property was transferred to the trust.

If the answer to at least one of the questions above (questions 1 - 10) is "Yes," please identify any statute,

regulation or administrative pronouncement that provides a definition or explanation of the term

"domicile":

This section addresses whether the trustor's domicile at various times throughout the trust's existence would, by

itself, create sufficient nexus to subject a trust to an income-based tax in your state as a resident trust. This

section also addresses whether other activities would, by themselves, create sufficient nexus to subject a trust to

an income-based tax in your state as a resident trust when it is unclear whether the trustor is domiciled in your

state. For purposes of this section, assume the trust was created as an irrevocable trust unless otherwise noted.



17. The trustor was present in your state for 183 days or more in the year the trust was

created or the year property was transferred to the trust.

18. The trustor was present in your state for LESS THAN 183 days (i.e., one to 182 days)

in the year the trust was created or the year property was transferred to the trust.

19. The trustor maintained a permanent place of abode in your state and was present in

your state for 183 days or more in the year the trust was created or the year property was

transferred to the trust.


your state for LESS THAN 183 days (i.e., one to 182 days) in the year the trust was



created or the year property was transferred to the trust, but did not maintain a permanent

place of abode in your state.


in the year the trust was created or the year property was transferred to the trust, but did

not maintain a permanent place of abode in your state.

23. The trustor was registered to vote in your state in the year the trust was created or in

the year property was transferred to the trust.

24. The trustor had a valid driver’s license issued by your state as of the date the trust was created or as of the date property was transferred to the trust.

25. The trust was created as a revocable trust but is now irrevocable, and the trustor

lived, but was not domiciled, in your state when the trust became irrevocable.26. The trust was created as a revocable trust but is now irrevocable, and the trust

consists of property transferred by a person who lived, but was not domiciled, in your

state when the trust became irrevocable.

27. The trustor lives, but is not domiciled, in your state.

28. The trust consists of property of a person who lives, but is not domiciled, in your state.

29. The trustor is registered to vote in your state.

30. The trustor holds a valid driver’s license in your state.31. The trustor maintains a permanent place of abode in your state.

32. The trustor spent 183 days or more in your state.

33. The trustor spent LESS THAN 183 days (i.e., one to 182 days) in your state.

34. The trustor maintains a permanent place of abode in your state and spent 183 days or

more in your state.35. The trustor maintains a permanent place of abode in your state and spent LESS

THAN 183 days (i.e., one to 182 days) in your state.

36. The trustor spent 183 days or more in your state, but does not maintain a permanent


37. The trustor spent LESS THAN 183 days (i.e., one to 182 days) in your state, but does


38. The trustor was a resident of your state as of his/her date of death.




D. Revocable Inter Vivos Trust Created by Domiciliary or Resident

2015

Response

2016

Response

1. The trust was created by a trustor who was domiciled in your state at the time the trust

was created.


the trust was created.

3. The trust was created by a trustor who was domiciled in your state at the time the

property was transferred to the trust.


the property was transferred to the trust.

5. The trustor was domiciled in your state at the time of both the creation of the trust and

the transfer of property to the trust.

6. The trustor is domiciled in your state.

7. The trust consists of property of a person who is domiciled in your state.

8. The trustor was domiciled in your state as of his/her date of death.

9. The trust was created by a trustor who lived, but was not domiciled, in your state at the

time the trust was created.


state at the time the trust was created.


the time the property was transferred to the trust.


state at the time the property was transferred to the trust.

13. The trustor lived, but was not domiciled, in your state at the time of both the creation

of the trust and the transfer of property to the trust.

14. The trustor maintained a permanent place of abode in your state during the year the

trust was created or the year property was transferred to the trust.




in the year the trust was created or the year property was transferred to the trust.


your state for 183 days or more in the year the trust was created or the year property was

transferred to the trust.


your state for LESS THAN 183 days (i.e., one to 182 days) in the year the trust was


This section addresses whether the trustor's domicile at various times throughout the trust's existence would, by

itself, create sufficient nexus to subject a trust to an income-based tax in your state as a resident trust. This

section also addresses whether other activities would, by themselves, create sufficient nexus to subject a trust to

an income-based tax in your state as a resident trust when it is unclear whether the trustor is domiciled in your

state. For purposes of this section, assume that the trust was created as a revocable trust and has not

subsequently become irrevocable.

If the answer to at least one of the questions above (questions 1 - 8) is "Yes," please identify any statute,

regulation or administrative pronouncement that provides a definition or explanation of the term

"domicile":




created or the year property was transferred to the trust, but did not maintain a permanent



in the year the trust was created or the year property was transferred to the trust, but did


21. The trustor was registered to vote in your state in the year the trust was created or in

the year property was transferred to the trust.

22. The trustor had a valid driver’s license issued by your state as of the date the trust was created or as of the date property was transferred to the trust.

23. The trustor lives, but is not domiciled, in your state.

24. The trust consists of property of a person who lives, but is not domiciled, in your state.

25. The trustor is registered to vote in your state.

26. The trustor holds a valid driver’s license in your state.27. The trustor maintains a permanent place of abode in your state.

28. The trustor spent 183 days or more in your state.

29. The trustor spent LESS THAN 183 days (i.e., one to 182 days) in your state.

30. The trustor maintains a permanent place of abode in your state and spent 183 days or

more in your state.

31. The trustor maintains a permanent place of abode in your state and spent LESS

THAN 183 days (i.e., one to 182 days) in your state.

32. The trustor spent 183 days or more in your state, but does not maintain a permanent


33. The trustor spent LESS THAN 183 days (i.e., one to 182 days) in your state, but does


34. The trustor was a resident of your state as of his/her date of death.

E. Domiciliary or Resident Trustee

2015

Response

2016

Response

1. A trustee is domiciled in your state.

2. A trustee lives, but is not domiciled, in your state.

3. A trustee has a permanent place of abode in your state.

4. A trustee is present in your state for 183 days or more.

5. A trustee is present in your state for LESS THAN 183 days (i.e., one to 182 days).

6. A trustee maintains a permanent place of abode in your state and spent 183 days or

more in your state.

7. A trustee maintains a permanent place of abode in your state and spent LESS THAN

183 days (i.e., one to 182 days) in your state.

8. A trustee spent 183 days or more in your state, but does not maintain a permanent


9. A trustee spent LESS THAN 183 days (i.e., one to 182 days) in your state, but does not

maintain a permanent place of abode in your state.

10. A trustee is registered to vote in your state.

11. A trustee has a valid driver’s license issued by your state.12. A trustee was appointed by your state court during the year.

13. A trustee is a corporation, partnership or other entity that has an office for conducting

trust business in your state.

14. A trustee conducts business in your state.




a. are domiciled in your state.

b. live, but are not domiciled, in your state.

c. are registered to vote in your state.

d. have a valid driver’s license from your state.e. maintain a permanent place of abode in your state.

f. were present in your state for 183 days or more.

g. were present in your state for LESS THAN 183 days (i.e., one to 182 days).

h. maintain a permanent place of abode in your state and were present in your state

for 183 days or more.i. maintain a permanent place of abode in your state AND were present in your state

for LESS THAN 183 days (i.e., one to 182 days).

j. were present in your state for 183 days or more, but do not maintain a permanent


k. were present in your state for LESS THAN 183 days (i.e., one to 182 days), but do


a. are domiciled in your state.

b. live, but are not domiciled, in your state.

c. are registered to vote in your state.

d. have a valid driver’s license from your state.e. maintain a permanent place of abode in your state.

f. were present in your state for 183 days or more.

g. were present in your state for LESS THAN 183 days (i.e., one to 182 days).

h. maintain a permanent place of abode in your state and were present in your state

for 183 days or more.

i. maintain a permanent place of abode in your state and were present in your state

for LESS THAN 183 days (i.e., one to 182 days).

j. were present in your state for 183 days or more, but do not maintain a permanent


k. were present in your state for LESS THAN 183 days (i.e., one to 182 days), but do


17. A person with power over the trust other than the trustee, such as a trust protector, is

domiciled in, or a resident of, your state.


16. The trust has more than one trustee, all of whom are individuals, and AT LEAST one-half of whom:

15. The trust has more than one trustee, all of whom are individuals, and LESS THAN one-half of whom:



F. Domiciliary or Resident Noncontingent Beneficiary

2015

Response

2016

Response

1. A noncontingent beneficiary is domiciled in your state.

2. A noncontingent beneficiary lives, but is not domiciled, in your state.

3. A noncontingent beneficiary has a permanent abode in your state.

4. A noncontingent beneficiary is registered to vote in your state.

5. A noncontingent beneficiary was present in your state for 183 days or more.

6. A noncontingent beneficiary was present in your state for LESS THAN 183 days (i.e.,

one to 182 days).

7. A noncontingent beneficiary maintains a permanent place of abode in your state and

was present in your state for 183 days or more.

8. A noncontingent beneficiary maintains a permanent place of abode in your state and

was present in your state for LESS THAN 183 days (i.e., one to 182 days).9. A noncontingent beneficiary was present in your state for 183 days or more, but does


10. A noncontingent beneficiary was present in your state for LESS THAN 183 days (i.e.,

one to 182 days), but does not maintain a permanent place of abode in your state.

11. A noncontingent beneficiary holds a valid driver’s license issued by your state.12. An income beneficiary was domiciled in, lived in, was registered to vote in, or held a

valid driver’s license issued by, your state as of the last day of the taxable year.If the answer to at least one of the questions above is "Yes," please identify any statute, regulation or

administrative pronouncement that provides a definition or explanation of the term "noncontingent

beneficiary":




G. Domiciliary or Resident Contingent Beneficiary

2015

Response

2016

Response

1. A contingent beneficiary is domiciled in your state.

2. A contingent beneficiary lives, but is not domiciled, in your state.

3. A contingent beneficiary is registered to vote in your state.

4. A contingent beneficiary maintains a permanent place of abode in your state.

5. A contingent beneficiary was present in your state for 183 days or more.

6. A contingent beneficiary was present in your state for LESS THAN 183 days (i.e., one

to 182 days).

7. A contingent beneficiary maintains a permanent place of abode in your state and was

present in your state for 183 days or more.

8. A contingent beneficiary maintains a permanent place of abode in your state and was

present in your state for LESS THAN 183 days (i.e., one to 182 days).

9. A contingent beneficiary was present in your state for 183 days or more, but does not

maintain a permanent place of abode in your state.

10. A contingent beneficiary was present in your state for LESS THAN 183 days (i.e., one

to 182 days), but does not maintain a permanent place of abode in your state.

11. A contingent beneficiary holds a valid driver’s license issued by your state.

H. Situs

2015

Response

2016

Response

1. The trust contains real property or tangible property physically located in your state.

This question has been deleted for 2016. X X

2. The trust contains an interest in an entity, other than a single-member LLC, that owns

real property or tangible property physically located in your state.

3. The trust contains an interest in a single-member LLC that owns real property or

tangible personal property physically located in your state.NEW



If the answer to at least one of the questions above is "Yes," please identify any statute, regulation or

administrative pronouncement that provides a definition or explanation of the term "contingent

beneficiary":



Nexus. It’s complicated. Every state has different rules for determining which activities are subject to different forms of taxation. And they’re constantly changing. Understanding whether your organization or clients are affected has been nearly impossible. Until now. Bloomberg BNA offers an expanded set of robust State Tax Nexus Tools – for corporate income, sales and use tax, and trusts – to help you identify nexus for your specific circumstances and situation. These easy-to-use tools can help you assess your tax exposure in each and every state. The State Tax Nexus Tools are just part of Bloomberg BNA’s state and federal tax solutions, including the Premier State Tax Library. Built by practitioners for practitioners, so you can practice with confidence – every day.

Everyday Exceptional.

50-9711 0916-JO21037 © 2016 The Bureau of National Affairs, Inc.

Start a FREE trial www.bna.com/statetax32800.372.1033

special report multistate tax report 2016 …...when this criteria is applied by several states, it...

Documents