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 94C2-015R was issued on October 11, 1994. The revision retained the 50% conclusion and supplied fuller statutory, rule, and case analysis. This page preserves the shorter original July ruling.

What this means for you

The original 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 revision retained the result and expanded the reasoning.

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.

Did the revision change the 50% result? No. Revised TAA 94C2-015R reached the same conclusion and added a fuller legal discussion.

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
• Revised advisement: TAA 94C2-015R

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

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