Trust Residency Factors Minnesota Department of Revenue
Updated January 2025
The issue
Tax administrators review many factors when making a determination about what is considered taxable within a state. Trusts are included in the list of items. The MN DOR now considers the location of a trust's advisors as one of the factors it will use to establish trust nexus and tax the trust as a Minnesota trust. This policy will result in trusts choosing advisors in other states and a loss of business in Minnesota-based trust advisors.
The MNCPA will pursue an update to the rules that are negatively impacting CPAs. Either through the administrative rules process or statutorily through with a law change.
Why you should care
Using the location of an adviser as a determining factor to establish trust residency will result in a loss of business for Minnesota based trusts.
What you can do
Contact your legislators and ask them to support legislation to modify relevant factors and not allow any factor that discrimates against hiring Minnesota vased professionals.
Influencing positive change
With the help of your donations to the MNCPA PAC, we have had great success at the Capitol throughout the past decade.
Reasons to contribute:
- Carry a unified message on CPA issues to legislators.
- Raise CPAs' visibility at the Capitol.
- Continue the proven track record of success.
Contribute to the PAC
