Hubba, Hubba, Hubba! Money, Money, Money! Who Do You Trust? California and North Carolina Differ On the Constitutionality of Taxing Undistributed Foreign Trust Income

The California Franchise Tax Board (FTB) issued an information letter explaining that a trust is taxable in California if any of the following three conditions are met: (1) the trust has income from California sources; (2) a trustee is a resident of California; or (3) a non-contingent beneficiary is a resident of California.