Supreme Court Limits States’ Ability to Tax Trust Income

Trust Income

On June 21, 2019, the Supreme Court unanimously agreed to limit States’ ability to tax trust income.  Justice Sotomayor delivered the opinion for the case, entitled North Carolina Dept. of Revenue v. Kimberly Rice Kaestner 1992 Family Trust. In the Kaestner Trust case, Joseph Lee Rice III had set up a trust in New York […]

Pass-Through Business Alternative Income Tax Act

Pass-Through Business Alternative Income Tax Act

New Jersey may be getting a lot tax friendlier for small business owners.  I hesitate to even write this blog post, as I generally prefer to wait until legislation is actually passed before I write on a topic (mainly because it is a waste of everyone’s time to read about something that may never come […]

NJ Estate Tax Repeal: How Does This Affect You?

NJ Tax Repeal How Does This Affect you

It’s official.  According to, Governor Christopher Christie has signed a bill to repeal the New Jersey Estate Tax.  The new law is part of a larger package deal that increases the gas tax, reduces the sales tax slightly, gives the working poor a larger tax credit, gives a tax cut on retirement income and gives a tax […]

Income Taxation of Trusts – Determining Which State Can Tax the Trust

The Situs of a Trust

Determining the situs of a trust (i.e. the residence of a trust) is not always an easy matter.  Each state has its own rules regarding whether a trust is a “Resident Trust”.  These rules are oftentimes different from the tax rules. In some states these rules have been challenged in Court as unconstitutional, where the […]

Dynasty Trusts Explained

Dynasty Trusts Explained

I am frequently asked about the best way to transfer wealth to younger generations.  Sometimes people feel that absent having a minor child, a problem child or a special needs child, there is no reason to set up a trust.  Often times they are correct and there is no reason create a trust because the […]

Change in New York Estate Tax Law

New York Estate Tax Law

Effective April 1, 2014, the State of New York made numerous changes to its tax law.  Most dramatically, New York is increasing its estate tax exemption amount from $1,000,000 to match the federal estate tax exemption amount. New York’s New Estate Tax Exemption Amount Until March 31, 2015, the new estate tax amount will be […]

Choosing an Executor, Trustee and Guardian

Choosing an Executor, Trustee and Guardian

Clients frequently ask me for advice on who they should name as Executor, Trustee or Guardian when creating their Last Will and Testament.  First, let me explain the difference between the three roles. The Executor  The Executor is the person who probates your Will, goes into your house and looks through all your things, safeguards […]

Same Sex Marriage Now Legal In New Jersey

Same Sex Marriage

Effective today, same sex marriage is now legal in New Jersey after Governor Chris Christie dropped his plans to appeal the ruling of Superior Court Judge Mary Jacobson.  On September 27, 2013, Judge Jacobson had ruled that New Jersey must allow same sex marriages in the wake of the Supreme Court’s decision in United States v. Windsor.Previously, […]