Trust State Income Taxes

Happy summer 2019! This morning, the U.S. Supreme Court ruled unanimously on state income taxation of trusts. The Court ruled 9-0 (per Justice Sotomayor) that a North Carolina law taxing any trust distribution “for the benefit of” a North Carolina resident was unconstitutional. The Supreme Court ruled the state trust income tax was unconstitutional for state residents if the resident (1) “received no income from the trust in the relevant tax year,” (2) “had no right to demand income from the trust in that year,” and (3) “could not count on ever receiving income from the trust.” This common sense ruling is good news for trust beneficiaries. If you’re a trust beneficiary, you should talk with an attorney and accountant to explore how this decision might impact their situation. Here are some basics on Kansas and Missouri trust income taxes.

A good estate plan, including a trust, is an affordable way to give you and your family peace of mind. My law firmJohnson Law KC LLC, works with clients on various estate planning, elder law, and probate needs, including preparing wills or helping on will contests, trust consultation and drafting, to help clients take care of their legal needs quickly and inexpensively, and has years of experience counseling clients on various legal issues. Call (913.707.9220) or email me (, the KC Estate Planner, today to schedule a free, convenient consultation.

(c) 2019, Stephen M. Johnson.