Due to recent case law, it is possible for a trust to not be taxed for state income tax purposes due to the different laws in different states. Between the different characters surrounding a trust, the grantor/settlor, the Trustee, and the beneficiaries, a trust may not be required to pay state income tax depending on the laws of each state in which the characters reside. Whether a trust is discretionary, revocable, or irrevocable can also affect where a trust is taxed. This does not begin to cover the complexities of the concept of a “homeless trust.” Read more here.
Reference: Considerable (July 10, 2019) “How to assign power of attorney without sparking a family feud”
Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys