Civil Procedure – Subject Matter Jurisdiction Practice Test

For diversity purposes, a trust’s citizenship is determined by the states in which its trustees are citizens. If there is a single trustee, the trust is a citizen of that trustee’s state. If there are multiple trustees, the trust is a citizen of every state where any trustee is a citizen. The beneficiaries’ citizenship does not determine the trust’s citizenship, and the location of trust assets does not control it. The settlor’s citizenship likewise does not determine the trust’s diversity status.

This is why the correct answer points to the states of the trustees’ citizenship as the basis for the trust’s jurisdictional citizenship. For example, a trust with trustees from California and New York would be considered a citizen of both states, which can affect whether complete diversity exists with the parties in a federal suit.