Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, March 7, 2019

Amicus Brief filed with Supreme Court

ActecAn amicus brief in The North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust was filed on March 1, 2019, with the Supreme Court by ACTEC. This is an important case dealing with the ability of a state to tax the income of an irrevocable nongrantor trust. The College took no position in the case, but instead, as noted in the brief, the brief was filed to:

“assist the Court in understanding the history and practice of state fiduciary income taxation as applied to accumulated income in nongrantor trusts and the complexities of such statutes in the context of the multi-state contacts common in today’s mobile society.”

Oral argument in Kaestner is set for April 16.

Special thank to Suzy Shaw for bringing this article to my attention.


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ACTEC says it is taking no position, but the brief argues that the Court would have to overturn longstanding precedent to find North Carolina has sufficient minimum contacts to tax undistributed income held by a nonresident trustee for the benefit of a resident beneficiary. Meanwhile an amicus brief filed by three constitutional law professors says the case should be remanded to develop arguments under a dormant commerce clause analysis -- which might better support North Carolina's position here.

Posted by: Russ Willis | Mar 8, 2019 5:40:57 PM

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