[DOWNLOAD] "Donald L. Blue v. Michigan Department" by Court of Appeals of Michigan # eBook PDF Kindle ePub Free
eBook details
- Title: Donald L. Blue v. Michigan Department
- Author : Court of Appeals of Michigan
- Release Date : January 11, 1990
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 61 KB
Description
In a judgment entered April 3, 1989, the trial court held MCL 206.18; MSA 7.557(118) to be unconstitutional as applied to the present case. Section 18 defines any trust created by, or consisting of property of, a person domiciled in Michigan at the time the trust becomes irrevocable as a ""resident trust"" subject to Michigan income taxation. The trial court found insufficient contacts with Michigan in this case to justify imposition of the tax on the trust. Defendant appeals as of right. We affirm. In 1961, Laura C. Perry, a Michigan resident, executed a revocable living trust. One year later Perry died while residing in Michigan, at which time the trust became irrevocable. The income beneficiary of the trust is decedent's daughter, who has been a Florida resident since December, 1978. There are also six residuary beneficiaries whose rights are created upon the death of the income beneficiary. Plaintiff is trustee of the trust and has lived in Florida since September, 1977. All of the trust's assets and other indicia of ownership are located in Florida, with the exception of one nonincome-producing parcel of real estate located in Michigan. Further, all brokerage accounts and bank accounts are held and administered in Florida. Likewise, on October 15, 1974, the trust was recorded in the State of Florida. Between the years 1982 and 1987, plaintiff filed State of Michigan tax returns and declared net annual income which was accumulated in the trust and was not distributed to any beneficiaries. Plaintiff brought the present action to recover amounts paid as taxes on the income which was accumulated by the trust.