Tax Type
Fiduciary Income Tax
Description
Resident Estates and Trusts; Income Beneficiary Domiciled in Virginia
Topic
Estates and Trusts
Date Issued
08-19-1992
August 19, 1992
Re: Request for Ruling: Fiduciary Income Tax
Dear*****************
This will reply to your letter dated April 15, 1991, in which you request, as trustee of the***********(the "Trust"), a ruling on the Virginia filing requirement for the Trust.
FACTS
**********(the "Decedent") created the Trust in 1978 while he was domiciled in Illinois. The Decedent was the trustee of the Trust until his death on November 30, 1989. In February 1982 the Decedent amended and restated the Trust. Sometime after amending the Trust and prior to his death, the Decedent moved to Virginia with the intent of making it his permanent place of residence. Decedent continued to administer the Trust while he resided in Virginia.
At the Decedent's death you became the trustee. You presently administer the Trust from Illinois, your state of domicile. The Trust does not own any assets located in Virginia. The Trust's only connection with Virginia is that the income beneficiary of the Trust, the Decedent's spouse, is domiciled in Virginia.
RULING
Va. Code §58.1-381 requires all resident trusts to file a Virginia fiduciary income tax return if it files a federal income tax return for any given taxable year. A resident trust is a trust which is (I) created by a will of a decedent who at his death was domiciled in Virginia; (ii) created by, or consists of property of a person domiciled in Virginia; or (iii) is being administered in Virginia. Va. Code §58.1-302.
The Trust does not possess any of the elements which would entitle Virginia to treat the Trust as a resident trust since the Trust was not created by the Decedent's will; the Decedent did not create, or substantially revise the trust while he was domiciled in Virginia, nor does the Trust own any property located in Virginia; and the Trust is presently being administered from Illinois. The Trust is not, therefore, a resident trust and as such it is not required to file a Virginia fiduciary return unless and until the circumstances as herein described change.
If you have any further questions concerning this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner