A former client who lived in Pa. set up a testamentary trust for a beneficiary who lives in Indiana. All the income is interest & dividends, which Pa. considers nontaxable to a non-resident.
My client has died & the trust is now in effect. The Trustee has asked me about what state Trust Income tax return must be filed. Since it has no Pa. taxable income, my feeling is that a Pa. Income tax return for the trust is not necessary, but one for Indiana is.
I really don't deal much with Trust returns, so I could really use an answer from someone who deals with this stuff regularly. I went to high school with the trustee & would like to help her out.