NC S468

Clarifies that North Carolina income tax on estates and trusts applies based on residency status and source of income, with taxation on nonresident estates/trusts limited to income derived from North Carolina sources or businesses.

Requires apportionment of taxable income between resident and nonresident current beneficiaries on a rational basis, with equal apportionment among all current beneficiaries as the default unless an alternative approach is justified and documented.

Defines key terms including "current beneficiary" (a person who is a distributee or permissible distributee of income or principal), "resident estate" (estate of a decedent who died a North Carolina resident), and "resident trust" (a trust with principal place of administration in North Carolina).

Applies to resident estates and trusts for the benefit of resident current beneficiaries, and to resident estates/trusts for the benefit of nonresident beneficiaries only to the extent income is derived from North Carolina sources or in-state business activities.

Effective for taxable years beginning on or after January 1, 2015.