For the past 30 years, South Dakota has been a bastion of extreme wealth, a place for multimillionaires and billionaires around the world to stash their money in vehicles known as trusts. As the explosive Pandora Papers investigation has exposed, the world’s wealthy employ complex schemes in order to avoid taxation, and the use of trusts is an essential strategy.

Trusts are common tools of wealth management, but they can be misused to foment massive dynastic wealth. For example, in a recent Institute for Policy Studies brief, my colleague Chuck Collins and I detailed how a multimillionaire or billionaire can create a dynasty trust, in which money can grow almost entirely protected from estate and transfer taxes.

Read the full article at The Nation.

Kalena Thomhave is a researcher for the Program on Inequality and the Common Good at the Institute for Policy Studies. Follow her on Twitter @kalenasthom.

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