Discussion:Situs of trust

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Discussion Forum Index --> Basic Tax Questions --> Situs of trust


Discussion Forum Index --> Tax Questions --> Situs of trust

Csg (talk|edits) said:

24 March 2009

Husband lives and dies in Va. His revocable trust becomes irrevocable at his death, per trust docs. Docs are silent on situs. Va says that if you die in Va, and trust created by will (it was), it is a VA trust. Okay. So wife/trustee moves to SC. We file Va tax return. SC says trust is resident trust if administered in SC.

Trust consists of investments, which don't exist in any state, just cyber space.

Can anyone help me with the very basic question of whether this is a VA or SC trust, and if it can be moved from one state to the other?

Kevinh5 (talk|edits) said:

22 July 2010
ressurecting this discussion thread hoping to get further discussion from the tax pros here. [edit: looks like a thorough investigation via the yellow search box has answered the question]

Kevinh5 (talk|edits) said:

22 July 2010
Discussion:Moving a Trust - Different State

Kevinh5 (talk|edits) said:

22 July 2010
Discussion:What constitutes income taxable to a nonresident state?

Kevinh5 (talk|edits) said:

22 July 2010
Discussion:What state to file a complex trust in.

Kevinh5 (talk|edits) said:

22 July 2010
that last discussion has some great info from Katie and Riley

Kevinh5 (talk|edits) said:

22 July 2010
Discussion:Trust: State Level Taxation

Kevinh5 (talk|edits) said:

22 July 2010
Discussion:VA Trust Question


CrowJD (talk|edits) said:

22 July 2010
These people prepare a revocable living trust to "save on probate costs". After death they go straight to the tax pro. The find out X number of years later that something was left out of the trust, or there was another legal problem and it costs them the big bucks to try to fix it.

However, I can certainly understand why tax pros are concentrating on the tax aspects in this situation.

Only thing I would advise tax pros is to be very clear in that engagement letter what you are doing, and what you are not doing. You don't want the client to claim they relied on you for handling the "estate".

Dennis (talk|edits) said:

23 July 2010
Note: A revocable trust is disregarded for tax purpose, not legal purpose. It is inter-vivos, not testamentary. The distinction is quite important to the determination of situs.

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