Did one Florida-resident co-trustee make part of an out-of-state testamentary trust subject to Florida intangible tax?

Subject

Trustee - Taxable In-State

Plain-English summary

The July 1994 ruling treated the Florida-resident co-trustee as subject to intangible personal property tax on 50% of the trust's taxable value. One trustee lived in Florida, one lived outside Florida, and the ruling said they shared management and control equally.

The official text prominently states that revised TAA 94(C)2-015R was issued on October 11, 1994. This page therefore preserves the original July conclusion but does not present it as the Department's final expression.

What this means for you

The unrevised ruling linked Florida taxable situs to a Florida-domiciled person's management or control and apportioned the trust equally between two equal co-trustees. The later revision is essential context.

Common questions

Did the trust's out-of-state creation prevent Florida tax? Not under the July ruling, because one co-trustee had become a Florida resident.

Why was 50% assigned to Florida? The two trustees shared management and control equally.

Is this the final ruling on those facts? The source says no: a revised TAA was issued later in 1994.

Citations and references

• Fla. Stat. §§ 199.175(1) and 213.22
• Fla. Admin. Code r. 12C-2.006(3)(e)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 94C2-015

Original ruling text

Status: Revised TAA 94(C)2-015R issued October 11, 1994.

Jul 22, 1994

Re: Technical Assistance Advisement No. 94(C)2-015
Intangible Personal Property Tax - Trust
XXX (Trust)
XXX (Deceased)
XXX (Beneficiary)
XXX (Trustees)

Dear :

The recent request for a technical assistance advisement
has been received in this office.

Facts

The Trust was created under the last will and testament of
the Deceased, who at the time of death was not a resident of
Florida. The will was admitted to probate out of the state, and
letters of trusteeship were issued to the Trustees at the time
of probate.

Both Trustees were out-of-state residents at time of
appointment. However, one Trustee recently established
residency in Florida.

The Beneficiary has the power to invade the Trust, each
year, in an amount not to exceed the greater of $5,000 or 5% of
the Trust assets valued at the end of each year.

Requested Advisement

No part of the Trust is subject to Florida intangible
personal property tax.

Discussion and Law

Section 199.175(1), F.S., provides that intangible personal
property shall have a taxable situs in this state when it is
owned, managed, or controlled by any person domiciled in this
state on January 1 of the tax year. When there are two
trustees, one is a resident and one a nonresident and they share
equally in management and control of the Trust, the assessment
of property would be apportioned between them, as provided in
Florida Administrative Code Rule 12C-2.006(3)(e).

Conclusion

Based upon the statutory provisions and the information
contained in your letter, the co-Trustee residing in this state
is subject to Florida intangible personal property tax on 50
percent of the taxable value of the Trust.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for
this advice as specified in s. 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response and your request
are public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect the confidentiality
of such information, we request you notify the undersigned in
writing within 15 days of any deletions you wish made to the
request or the response.

Sincerely,

Nadine C. Posey
Tax Audit Specialist III

Technical Assistance

NCP/mh