Skip navigation

U.S. Supreme Court Decides Kaestner But Teaches Little

State tax on trust income violates due process clause.

The U.S. Supreme Court, in a unanimous decision, held in favor of the taxpayer in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust.1 The Court held that North Carolina can’t tax trust income based solely on the presence of in-state beneficiaries when the beneficiaries had no right to demand the income and weren’t certain to receive it. Although unanimous opinions are often referred to as “sweeping,” Kaestner was clearly designed to


Please Log in if you are currently a Trust&Estates subscriber, or select DAYPASS for our new 24 hour access (nominal fee required).

If you are interested in unlimited article access for one year, please select Annual Subscription below.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.