Embattled Oil Creates Slippery Slope For Alaskan Trusts

Alaska’s revenues from oil production have dropped dramatically and the state is now faced with a multi-billion dollar budget deficit. In response, the state will impose an income tax for the first time in over 30 years. For those who have established asset protection or tax planning trusts in Alaska, this spells trouble. Alaska will tax trusts administered in the state as well as nonresident beneficiaries who receive distributions.