fmaderjr Posted February 13, 2012 Report Share Posted February 13, 2012 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. Quote Link to comment Share on other sites More sharing options...
DougO Posted February 13, 2012 Report Share Posted February 13, 2012 What state is the trust established in - that is the determining factor. It makes no difference where the beneficiary resides the trust is responsible to the location where it resides legally. Quote Link to comment Share on other sites More sharing options...
fmaderjr Posted February 13, 2012 Author Report Share Posted February 13, 2012 The Trust was established in Pa. so I guess she has to file the Pa. 41. It was confusing to me because the beneficiary will owe no Pa. taxes on the trust income. It's all dividends & interest and he's a Nonresident. Thanks for you help. Quote Link to comment Share on other sites More sharing options...
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