Richard Kiely, of Holland & Hart, has made available for download his article, “Why Trust Situs is Important,” published in JDSUPRA. The abstract is as follows:
When does a trust’s situs, also known as principal place of administration, move? What is enough to trigger a move? Should a trustee be concerned about their trust’s situs? These are all great questions that often get overlooked in the years and decades after a trust is created and well into its administration by a trustee.
Trust situs is an important issue for several reasons. Situs can dictate which state’s income tax applies, e.g., California vs. New York vs. Wyoming; situs is a factor in determining what law governs the administration of the trust; and situs often determines where a trustee or beneficiary might seek judicial relief. Accordingly, determining and possibly relocating trust situs is a significant decision for a trustee’s consideration.
Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.