Moguls Rent South Dakota Addresses to Dodge Taxes Forever

[xchrom]

http://www.bloomberg.com/news/2013-12-27/moguls-rent-south-dakota-addresses-to-dodge-taxes-forever.html


Among the nation’s billionaires, one of the most sought-after pieces of real estate right now is a quiet storefront in Sioux Falls, South Dakota.

A branch of Chicago’s Pritzker family rents space here, down the hall from the Minnesota clan that controls the Radisson hotel chain, and other rooms held by Miami and Hong Kong money.

Don’t look for any heiresses in this former five-and-dime. Most days, the small offices that represent these families are shut. Even empty, they provide their owners with an important asset: a South Dakota address for their trust funds.

In the past four years, the amount of money administered by South Dakota trust companies like these has tripled to $121 billion, almost all of it from out of state. The families needn’t actually move to South Dakota, or deposit their money at a local bank, or even touch down in the private jet. Little more than renting an address in Sioux Falls is required to take advantage of South Dakota’s tax-friendly trust laws.

[Sienna86]

1. RV retirees sometimes use SD addresses

Had no idea it was being used by billionaire trust funds.

[kelliekat44]

2. If there is a way for the ultra rich to avoid paying their fair share...they will find it. nt

[dixiegrrrrl]

3. An intriguing story.

I had to chuckle at the term of So. dakota ( and presumably N. dakota) being called America's Siberia.
a shivery thought.

[sulphurdunn]

4. Penny Pritzker

is to Barack Obama what Meyer Wolfsheim is to Jay Gatsby.

[TwilightGardener]

5. I owned a house in SD. Guess I should have hung on to it for when I make my first billion.

South Dakota used to be known for lax divorce laws, which would draw couples on the splits from all over. All that plus the Mitchell Corn Palace--what a great place.

[avaistheone1]

6. Wow! We have our own Cayman Island tax haven within our own borders.

USA! USA! USA!

[frylock]

7. Obama appointee Penny Pritzker is part of Chicago’s Pritzker family, no?

[xchrom]

8. yes. nt

[badtoworse]

9. I'm not a big fan of estate taxes

If I've already paid taxes on my assets, I don't believe it's fair for the government to take another big bite when I die. In the case of a truly large estate, the government could wind up taxing away large amounts of the estate every time it passes from one generation to the next. That is just not reasonable.

[Tx4obama]

10. Kick! n/t