Graves v. Elliott

1 Analyses of this case by attorneys

  1. Trust Wins Due Process Challenge to North Carolina State Income Tax

    McDermott Will & EmeryJune 28, 2019

    The opinion states that there must be an inquiry into what the settlor “controls or possesses and how that interest relates to the object of the State’s tax.” It then refers to Curry v. McCanless, discussed above in relation to the trust administration connection, and another case decided the same year, Graves v. Elliott, 307 U.S. 383 (1939). In both cases the Supreme Court sustained the power of a state to tax a trust with a resident settlor but only because the settlor retained significant powers over the trust property.