Full Deep-Dive: The Dynasty Trust Perpetual Wealth Scam

“How South Dakota turned America into a 1,000-year tax-free aristocracy”

The mechanics (2025)

  • 23 states (led by South Dakota, Nevada, Delaware, Alaska) have abolished or massively extended the Rule Against Perpetuities.
  • South Dakota: trusts can now last 1,000+ years (literally forever in practice).
  • You put $100M–$10B+ into an irrevocable trust in Sioux Falls.
  • Trust owns the life insurance, private equity, real estate, art, etc.
  • Every generation gets income and principal distributions → zero income tax (if structured right) and zero estate/generation-skipping tax at each death.
  • Result: one family can compound wealth tax-free for 40+ generations.

Who uses it

  • Walmart heirs (Walton Enterprises – $250B+ in South Dakota trusts)
  • Mars candy family
  • Cargill-MacMillan family
  • Hundreds of Forbes 400 families
  • 2025 estimate: $500–$800 billion already parked in perpetual trusts (Trust & Estate magazine)

The money lost

  • Current 40% estate tax + 40% GSTT completely avoided forever.
  • Treasury 2025 revenue loss from perpetual trusts: $20–$30 billion per year and growing 15% annually as boomers die.

Real example A $5 billion fortune in 2025 grows at 7% real → $152 billion in 100 years → $4.6 trillion in 200 years → all tax-free if in a South Dakota dynasty trust.

Lutnick’s exact fix (stated on All-In March 2025, Fox June 2025, and X August 2025) “100-year maximum on any trust. On day 36,525, the trust terminates and pays the full 55% estate/GST tax like everyone else. One sentence. Ends the permanent American aristocracy tomorrow.”

Revenue impact

  • Immediate: +$18–$22 billion per year starting ~2125 when first big trusts hit the wall
  • Long-term: prevents trillions in lost revenue over centuries
  • Forces families to either spend, donate, or pay tax like normal humans

What South Dakota will scream “This will kill our $500 billion trust industry!” Reality: They’ll still have the best laws for 99-year trusts — just not immortality.

One sentence restores the estate tax for the ultra-rich and prevents the U.S. from becoming a hereditary oligarchy.

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Author: timothymccandless

I have spent most of my professional life helping people who were being taken advantage of by systems they did not fully understand. As an attorney, I represented consumers against predatory lending practices and worked in elder law protecting seniors from fraud. My family lost $239,145 to identity theft, which became the foundation for my seniorgard.onlime and deepened my commitment to financial education. Since 2008, I have maintained a blog at timothymccandless.wordpress.com providing free financial education. Not behind a paywall. Free, because financial literacy should not cost money. I trade with real money using the exact strategy described in this book. My current positions: Pfizer at $16,480 deployed generating $77,900 per year net. Verizon at $29,260 deployed generating $51,000 per year net. Combined: 293% annualized pace. These are my only active positions. Not cherry-picked.

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