TAXATION-INCOME TAX -JURISDICTION -TRUSTS - STATE TAX ON RESIDENT BENEFICIARY'S NET INCOME FROM TRUST ESTABLISHED AND ADMINISTERED BY NON-RESIDENT TRUSTEE

The state of Virginia imposed an income tax upon the income received by a resident of Virginia as beneficiary of a discretionary trust established and administered in New York by a resident of New York, which state had levied and collected an income tax on the entire income of the trust fund. Petitioner protested the payment of the Virginia tax, alleging the taking of property without due process of law and the denial of equal privileges in contravention of the Fourteenth Amendment of the Federal Constitution. Held, that the tax was valid, since it was ascertained by the beneficiary's equitable interest, which had its situs in the taxing state. Guaranty Trust Co. of New York v. Virginia, 305 U.S. 19, 59 S. Ct.

1 (1938).