Article on State Taxation of Trusts

John McGown, Jr. (Hawley Troxell Ennis & Hawley LLP, Boise, Idaho) recently published an article entitled, State Taxation of Trusts and Their Beneficiaries When There Are Multiple State Contacts, 39 ACTEC Law Journal No. 3 (Winter 2013).  Provided below is the introduction of the article:

This article examines the state income taxation of testamentary trusts and individual trust beneficiaries when there are multiple state contacts. For matters of illustration, the focus is on states comprising the Northwest Idaho, Wyoming, Montana, Washington, Oregon, Nevada, and Utah. Since three of these states have no individual income tax, the essence of the inquiry is limited to the state income tax systems of Idaho, Utah, Montana, and Oregon. Although the focus is on states in the Northwest, the concept applies nationwide. Before moving on to an examination of the state taxation topic, a review of the basic federal system of taxing trust income may be beneficial.