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> Instead of subjecting his gross estate to the federal estate tax, Hsieh could have set up a trust in which he has no control over, transfer his assets into it
by ploden 3y ago
> Instead of subjecting his gross estate to the federal estate tax, Hsieh could have set up a trust in which he has no control over, transfer his assets into it, then have a trustee continue to carry out his goals
The real outrage is that this is legal.
- yieldcrv 3y agothe estate tax? “why aren't we getting scammed equally” is a pitiful argument
- morkalork 3y agoFrom society comes one's wealth, and back into society it shall go.
- deleted 3y ago[deleted]
- dmoy 3y ago> The real outrage is that this is legal As stated it's not exactly accurate. Your estate is taxed before it goes into a normal trust. To avoid taxes with a trust you have to set it up a long time in advance and slowly shift money in. And at $1B, it's not gonna happen. Even if you use various tricks to put lower priced assets into the trust early and let them appreciate (or e.g. buy permanent life insurance with the trust assets), none of those strategies scale to O($billion) GSTs used to be able to get around that, but not so much anymore. A "real" way to avoid it is to put massive amounts into a charity (or occasionally a "charity"), and then have that charity hire your kids for cushy jobs. There are other ways around it too, hiding assets overseas or whatever. But the article gives a very inaccurate description of using trusts to get around estate taxes. Which is ... weird, right? It's an estate planning attorney? I dunno.
- yieldcrv 3y agoyep, and the charity’s underlying entity can be a corporation or a trust, which does confuse the general understanding of these things as the terms are often conflated almost infinite permutations are possible