Who Needs Bermuda? Tax Dodgers Rush To South Dakota

When thinking of tax-dodging millionaires one usually imagines them having to rent out a post office box in Bermuda. Now there is no need. South Dakota is quickly becoming the go-to place for those who don’t want to pay their fair share and all they need to do is rent part of an empty storefront.

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.

In addition to stashing away money far from the greedy hands of Uncle Sam or the hungry hands of the nations poor, South Dakota offers complete secrecy. This comes in handy for those worried about outside financial obligations, suffer from a guilty conscience or simply want to avoid public ridicule and shame.

[Many are]  drawn to South Dakota’s iron-clad secrecy, and protections of trust assets from creditors and ex-wives. Many of these features emulate those available in Bermuda and other island havens. Some wealthy families are also attracted by South Dakota rules that enhance their control over investment decisions and make it easier for them to set up their own trust companies rather than rely on a bank trustee.