In the Ohio Supreme Court case of Knust v. Wilkins, 111 Ohio St. 3d 331, 2006 Ohio 5791, 856 N.E.2d 243, the Ohio Supreme Court held that "income earned by a grantor trust is taxable to the grantor rather than to the trust itself -- even if the trust is an ESBT." Id. at P31. The holding essentially prevents the creation of grantor trusts as a means to shelter S corporation income from Ohio taxation. The Busas acknowledged in their briefs that their ESBT trusts were in fact, grantor trusts. As the Supreme Court in Knust explained, electing to make the grantor trust an ESBT "does not change the ordinary requirement that the grantor trust's income is taxed to the grantor and not to the trust itself." Id. at P25.