5 ms·

For more on this, which I really don't recommend, google "South Dakota Dynasty Trust."

by hilux 3y ago

triceratops 3y ago
Why don't you recommend it?
- hilux 3y ago
  Because it's depressing.
  - tylersmith 3y ago
    But what about it a Trust is depressing exactly? It's just a legal agreement for how wealth can be spent.
    - yboris 3y ago
      0 taxation on assets or income and it's available to people living outside of the state. So rich people can avoid paying taxes.
      - lotsofpulp 3y ago
        It’s for avoiding federal taxes. The federal government can fix the situation anytime it wants, and it won’t matter where in the US people live.
        SoftTalker 3y ago
        Specifically for avoiding tranfer/inheritance taxes. Any money actually paid out of the trust to a beneficiary is subject to that individuals federal income taxes.
        verall 3y ago
        > [A functioning federal government could] fix the situation anytime it wants
    - callalex 3y ago
      Money is a social construct, and it seems you are starting from the base assumption that wealth can be transferred infinitely and unrestricted between generations. Not everyone holds that view of money.
      - adolph 3y ago
        Isn't that the idea behind a nation or any other governance structure? The wealth built within the entity can be transferred infinitely and unrestricted between generations? What's the difference if the structure is a government, religion, guild, corporation, cartel, mafia, family or Mars colony?
      - qeternity 3y ago
        > Money is a social construct Money and wealth, though often used interchangeably, are very different things. Money is one form of wealth. So whilst you are correct, it’s not the point you’re trying to make. Wealth is absolutely not a social construct and never has been.
    - yunohn 3y ago
      I’m not sure you actually read up about South Dakota Dynasty trusts nor the general context from these comments/post. Instead, you appear to be asking a “simplistic” question feigning ignorance, rather than a serious attempt at understanding the problem.
  - piva00 3y ago
    You weren't lying. > When Citibank based its credit card business in Sioux Falls, it could charge borrowers any interest rate it liked, and credit cards could become profitable. Thanks to Janklow, Citibank and other major companies came to South Dakota to dodge the restrictions imposed by the other 49 states. And so followed the explosion in consumer finance that has transformed the US and the world. Thanks to Janklow, South Dakota has a financial services industry, and the US has a trillion-dollar credit card debt. > Fresh from having freed wealthy corporations from onerous regulations, Janklow looked around for a way to free wealthy individuals too, and thus came to the decision that would eventually turn South Dakota into a Switzerland for the 21st century. He decided to deregulate trusts.
  - matheusmoreira 3y ago
    > A Dynasty Trust can be free of estate taxes and protect the assets from potential creditors. > Further, Dynasty Trusts can take the greatest possible advantage of a grantor’s gift tax exemption > currently $12.92 million per taxpayer and $25.84 million per married couple in 2023 > and generation-skipping transfer tax exemption > $12.92 million per taxpayer and $25.84 million per married couple in 2023 You weren't kidding... So how much wealth does one need to have in order to get one of these things?
yboris 3y ago
> "Dynasty trusts can be created in South Dakota for families who do not live in the state. South Dakota allows trusts to continue in perpetuity, avoiding federal transfer taxes for generations. The state does not impose any form of taxation (income, dividend interest, capital gains) on these trust assets."
- imhoguy 3y ago
  Can it be created by non-resident e.g. EU citizen?
- codedokode 3y ago
  Aren't there federal taxes?
- elzbardico 3y ago
  What is the point for South Dakota if they don't collect taxes? Just being conservative assholes against the other states? Being ideological jerks?
  - SXX 3y ago
    There are still high-paying jobs for those maintaining this infrastructure as well as income for law and accounting firms serving them. Cashflow is always good even without taxes to collect.

For more on this, which I really don't recommend, google "South Dakota Dynasty Trust."

by hilux 3y ago

For more on this, which I really don't recommend, google "South Dakota Dynasty Trust."

triceratops 3y ago

Why don't you recommend it?

hilux 3y ago
Because it's depressing.
- tylersmith 3y ago
  But what about it a Trust is depressing exactly? It's just a legal agreement for how wealth can be spent.
  - yboris 3y ago
    0 taxation on assets or income and it's available to people living outside of the state. So rich people can avoid paying taxes.
    - lotsofpulp 3y ago
      It’s for avoiding federal taxes. The federal government can fix the situation anytime it wants, and it won’t matter where in the US people live.
      - SoftTalker 3y ago
        Specifically for avoiding tranfer/inheritance taxes. Any money actually paid out of the trust to a beneficiary is subject to that individuals federal income taxes.
      - verall 3y ago
        > [A functioning federal government could] fix the situation anytime it wants
  - callalex 3y ago
    Money is a social construct, and it seems you are starting from the base assumption that wealth can be transferred infinitely and unrestricted between generations. Not everyone holds that view of money.
    - adolph 3y ago
      Isn't that the idea behind a nation or any other governance structure? The wealth built within the entity can be transferred infinitely and unrestricted between generations? What's the difference if the structure is a government, religion, guild, corporation, cartel, mafia, family or Mars colony?
    - qeternity 3y ago
      > Money is a social construct Money and wealth, though often used interchangeably, are very different things. Money is one form of wealth. So whilst you are correct, it’s not the point you’re trying to make. Wealth is absolutely not a social construct and never has been.
  - yunohn 3y ago
    I’m not sure you actually read up about South Dakota Dynasty trusts nor the general context from these comments/post. Instead, you appear to be asking a “simplistic” question feigning ignorance, rather than a serious attempt at understanding the problem.
- piva00 3y ago
  You weren't lying. > When Citibank based its credit card business in Sioux Falls, it could charge borrowers any interest rate it liked, and credit cards could become profitable. Thanks to Janklow, Citibank and other major companies came to South Dakota to dodge the restrictions imposed by the other 49 states. And so followed the explosion in consumer finance that has transformed the US and the world. Thanks to Janklow, South Dakota has a financial services industry, and the US has a trillion-dollar credit card debt. > Fresh from having freed wealthy corporations from onerous regulations, Janklow looked around for a way to free wealthy individuals too, and thus came to the decision that would eventually turn South Dakota into a Switzerland for the 21st century. He decided to deregulate trusts.
- matheusmoreira 3y ago
  > A Dynasty Trust can be free of estate taxes and protect the assets from potential creditors. > Further, Dynasty Trusts can take the greatest possible advantage of a grantor’s gift tax exemption > currently $12.92 million per taxpayer and $25.84 million per married couple in 2023 > and generation-skipping transfer tax exemption > $12.92 million per taxpayer and $25.84 million per married couple in 2023 You weren't kidding... So how much wealth does one need to have in order to get one of these things?

yboris 3y ago

> "Dynasty trusts can be created in South Dakota for families who do not live in the state. South Dakota allows trusts to continue in perpetuity, avoiding federal transfer taxes for generations. The state does not impose any form of taxation (income, dividend interest, capital gains) on these trust assets."

imhoguy 3y ago
Can it be created by non-resident e.g. EU citizen?
codedokode 3y ago
Aren't there federal taxes?
elzbardico 3y ago
What is the point for South Dakota if they don't collect taxes? Just being conservative assholes against the other states? Being ideological jerks?
- SXX 3y ago
  There are still high-paying jobs for those maintaining this infrastructure as well as income for law and accounting firms serving them. Cashflow is always good even without taxes to collect.