As a trustee, you have a duty to act in the best interests of the trust and its beneficiaries. Part of that duty includes minimizing the tax burden of the trust, including state income tax. That's why it's important to work with a knowledgeable tax professional and understand the tax laws in your state. By taking advantage of tax deductions and credits, structuring distributions strategically, and making informed investment decisions, you can help minimize the state income tax liability of the trust. Remember, a trustee who fails to minimize the tax burden of the trust may be held liable for any resulting losses or penalties. So, take your duty seriously and work with trusted professionals like Schooley Law Firm to ensure you're fulfilling your obligations as a trustee.

Click the link below to hear ACTEC Fellows discuss how navigating a trustee's duty to minimize state income taxes entails legal, practical, and moral considerations, ensuring fiduciary obligations are met.