Thursday, January 2, 2014
Moguls have discovered that all they have to do is rent an address in Sioux Falls, South Dakota, to take advantage of the state’s tax-friendly trust laws.
South Dakota’s sudden popularity is just another creative way the wealthiest Americans are legally reducing their taxes. Besides the use of dynasty trusts, which shield a family’s wealth forever, the wealthy are also attracted to South Dakota’s iron-clad secrecy and the protections provided for trust assets, which liken South Dakota to island havens like Bermuda.
See Zachary R. Mider, Moguls Rent South Dakota Addresses to Dodge Taxes Forever, Bloomberg, Dec. 26, 2013.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law), Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)), and Naomi Cahn (John Theodore Fey Research Professor of Law, George Washington University School of Law) for bringing this article to my attention.