New York State Beneficiary of a Florida Trust Inherited IRA

Forum|Forum|1 year ago
January 27, 2025
2 replies
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If a Trust is in Florida and it receives a 1099-R for an Inherited IRA’s and 2 of the Beneficiaries who live in New York State are issued 1041 K-1’s do any other tax forms for have to be issued or filed by the Trust with the state of New York? I would think not since it’s a Florida Trust.

SabrinaD2

Alumni - Expert

Yes, you are correct that a Florida trust doesn't need to file tax forms with New York State simply because some beneficiaries reside there. Here are some points to support this:

Florida doesn't impose a state income tax on trusts. Therefore, the trust itself isn't subject to state income tax in Florida. See, So You Left Your Trust at Home When You Moved to Florida – The Florida Bar
New York State taxes trusts based on the residency of the trust itself, not the beneficiaries. If the trust is run in Florida and meets the rules for a nonresident trust in New York (e.g., all trustees live outside New state trust assets are located outside New York, and there's no income from New York), it wouldn't be taxed by New York State. See Panel 4 Florida Trust Considerations for the NY Practitioner.pdf