Every Massachusetts trust is required to file a Massachusetts Fiduciary Income Tax return and pay tax on income earned by the trust. For a “Resident Inter Vivos Trust” to be subject to the taxing jurisdiction of Massachusetts, at least one trustee must be a resident of Massachusetts. Massachusetts General Laws Chapter 62, § 10(c) and 830 Code of Massachusetts Regulations §62.10.1(1)(b). The residency of the trust beneficiary is not a factor. The way to avoid this tax is to create a non-resident trust by simply appointing a qualified out-of-state trustee and have no additional trustee who resides in Massachusetts. I am a professional trustee with experience in trust administration, investment oversight, sensitivity to family issues and attention to detail If your trust selects me to serve as your out-of-state, sole trustee, your Massachusetts inter-vivos trust will no longer be subject to Massachusetts fiduciary income tax.