Estate of Evans v. Dept. of Rev.

“If the resident's interest in the intangible property is sufficiently substantial, such that it is a source of actual or potential wealth to and cannot be dissociated from the resident, then his or her enjoyment of the benefits and protections offered by the state—including simply the benefit of living in an 'orderly, civilized society' for which the state is responsible, J.C. Penney Co., 311 U.S. at 444—is a sufficient justification for the state to impose its tax on that property.”

Plaintiff appealed a decision from the Oregon Tax Court which included a trust from Montana. On appeal, Plaintiff assigned error to the lower court's imposition of a tax under the Due Process Clause.  The decedent had the right to receive, and received, income from the Montana trust. Nevertheless, Plaintiff contended that the state did not have the kind of connection contemplated by the Due Process Clause required to included the Montana trust in the decedent’s taxable estate. “If the resident's interest in the intangible property is sufficiently substantial, such that it is a source of actual or potential wealth to and cannot be dissociated from the resident, then his or her enjoyment of the benefits and protections offered by the state—including simply the benefit of living in an 'orderly, civilized society' for which the state is responsible, J.C. Penney Co., 311 U.S. at 444—is a sufficient justification for the state to impose its tax on that property.” Due to the decedent’s sufficient enjoyment of the trust in an “orderly, civilized society” provided by Oregon, the minimum contact test was satisfied. Affirmed.