WASHINGTON—North Carolina’s solicitor general told the Supreme Court that his state is entitled to tax residents who are beneficiaries of trusts created outside the state, even if they haven’t received payments from the trust.
How the Supreme Court rules in the case, known as North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust, might have an impact on the nation’s trust industry, which generates more than $120 billion in earnings every year.
