Illinois DOR Clarifies Tax Implication of Trust Situs Change

The Illinois Department of Revenue (DOR) issued a general information letter regarding changing the residency of a trust and the tax implication. The Department explained that changing the situs of a trust may result in a change of residency for tax purposes, depending on the relevant factors and connections between the trust and Illinois as interpreted under a referenced case. Whether the trust income is taxable to Illinois depends on if the trust is considered an Illinois resident trust under the statutory definition. [Il. Dep’t of Revenue, IT-25-0009-GIL, 09/11/25]

This story was produced by Bloomberg Tax Automation, and edited by ...