Illinois Trust question

Technical topics regarding tax preparation.
#1
merlin  
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IRR (complex) Trust was established in IL some 10 years ago and filed 1041 and IL-1041 all this time, including 2021.

In 2021 the trustee was changed to a non-IL resident, the beneficiaries were never IL residents and the income comes from an investments account. The trust agreement allows the trustee to move the trust to another jurisdiction.

I see that per IL-1041 instructions "Resident means"..(also).. "an irrevocable trust, whose grantor was domiciled in
Illinois at the time the trust became irrevocable". This may have been the case when started.

On the other hand, in Linn v. Department of Revenue, 2013 IL App (4th) 121055, the court ruled that such trust should not be taxed in IL.

Do you know the practice status "on the ground"?
Will filing a final 2022 IL-1041 going to end the IL filing requirement?

(I'm aware of a "Decanting" option, of the existing trust to a new non-IL trust, but that will be the expensive way, that we try to avoid).


Thanks!
 

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