I am researching something and am having trouble finding a plain language answer. If any of the other tax pros here happen to know the answer of the top of their head, I would appreciate it. Otherwise please do not feel that you need to research anything.
Deceased is from state A, trust was done in state A, trustee is located in state A. The beneficiaries are in state B and are minors that do not get distributions (except for educational costs if they end up going to college) until they are 25. The trust pays taxes on the trust income. The trust has always filed a state A tax return.
Now, the Trustee is considering moving to state C. In what state should the trust file an income tax return once the Trustee has moved?
So far my research seems to be leaning in the direction that the state for taxation and situs purposes follows the trustee, but that seems off to me. However, it also doesn't seem logical that it would go to either state B or remain in state A either.
So, if anyone knows the answer to that question off of the top of their head, I would appreciate the info.