Fiduciary Income Tax

Who Must File

Every resident estate or trust and every nonresident estate or trust deriving income from Louisiana must file a fiduciary income tax return. Grantor trusts as defined in R.S. 47:187 will be required to file only if part of the income is taxable to the trust or if there are nonresident beneficiaries. In a grantor trust, the trust is ignored to the extent that the grantor can be the beneficiary. The grantor is taxed as if he had never put the assets in trust.

A resident estate is the estate of a decedent who at his death was domiciled in this state. A resident trust is a trust or portion of a trust created by last will and testament of a decedent who at his death was domiciled in this state. Any other trust shall be considered a resident trust if the trust instrument provides that the trust shall be governed by the laws of the state of Louisiana. If the trust instrument is silent with regard to the designation of the governing law, then the trust shall be considered a resident trust only if the trust is administered in this state.

A nonresident estate or trust would be any estate or trust that is not considered a resident estate or trust. Estates and trusts located outside the United States that derive income from Louisiana sources shall be taxed in the same manner as other nonresident estates or trusts even if the estate or trust is not required to file a federal fiduciary return. Such estates or trusts may elect to be taxed at the rate of five percent on total gross income from Louisiana sources.

Date Tax due

Returns and payments are due on May 15th of each year on the preceding year's income, or on the 15th day of the fifth month after the close of the taxpayer's fiscal period.

Determination of Tax

Fiduciaries are taxed on net income computed at the following rates:

  • 2 percent on the first $10,000
  • 4 percent on the next $40,000
  • 6 percent on the excess over $50,000