Home

A Tax Haven in Our Midst
Download PDF

According to Edward McCaffery, a professor at the University of Southern California’s Gould School of Law, states like South Dakota are “creating laws that are conducive to a massive exploitation of a federal tax loophole.” He also stated, according to Bloomberg News that “We have a tax haven in our midst.”

Moguls are coveting a South Dakota address for their trust funds. The wealthy families don’t need to actually move to South Dakota, or deposit their money at a local bank, to take advantage of South Dakota’s tax-friendly trust laws.

  
What
Where


Americans are trying to find creative ways to reduce taxes legally. A dynasty trust is a trust designed to avoid or minimize estate taxes being applied to great family wealth with each transfer to subsequent generations. South Dakota Trust Co., is one of the biggest in the state. It is estimated that one-quarter of their business comes from special vehicles known as “dynasty trusts,” which are trusts designed to avoid the federal estate tax. Pierce H. McDowell III, is the president of South Dakota Trust Co., and according to his family history McDowell’s grandfather worked as a trust officer at the bank and was present in 1934 when Baby Face Nelson and his notorious gang robbed the local Security National Bank.It doesn’t take more than acquiring an address in Sioux Falls to take advantage of South Dakota’s tax haven.

Image Credit: www.bloomberg.com

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Attorney with 3-7 years of litigation experience

USA-IL-Chicago

Chicago office of our client seeks attorney with 3-7 years of litigation experience. The candidate s...

Apply Now

Mid-level IP Litigation Attorney with electrical engineering experience

USA-CA-San Francisco

San Francisco office of our client seeks mid-level intellectual property attorney with 3-5 years of ...

Apply Now

Mid-level Attorney with environmental/regulatory experience

USA-CA-Sacramento

Sacramento office of our client seeks mid-level attorney with 2-7 years of experience to support its...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

In-house Counsel / Securities Attorney

USA-NY-Manhattan

Multi-billion and growing Midtown-based Real Estate focused Alternative Investment Manager sponsorin...

Apply now

In-house Counsel / Transactional Real Estate Attorney

USA-NY-New York City

Multi-billion and growing Midtown-based Real Estate Private Equity firm sponsoring a multi-family NY...

Apply now

Associate Attorney

USA-MN-Hibbing

Busy Northern Minnesota practice seeking associate attorney preferably with general practice experie...

Apply now

Litigation Associate

USA-NV-Las Vegas

Bailey Kennedy seeks a litigation associate with one to four years of experience to work on complex ...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top