Bill and Hillary Clinton are using trusts to hide their wealth and avoid paying the high tax rates they themselves support for others, Bloomberg reports.
According to the news agency, these tax moves, “common among multimillionaires, will help shield some of their estate from the [estate tax] that now tops out at 40 percent of assets upon death.”
According to financial disclosures obtained by Bloomberg, the Clintons set up “resident trusts” in 2010 and then transferred their New York home into the trusts in 2011.
Bloomberg explains, “among the tax advantages of such trusts is that any appreciation in the house’s value can happen outside of their taxable estate. The move could save the Clintons hundreds of thousands of dollars in estate taxes.”
David Scott Sloan, a partner at Holland & Knight LLP, says “the goal is really be thoughtful and try to build up the nontaxable estate, and that’s really what this is. You’re creating things that are going to be on the nontaxable side of the balance sheet when they die.”
The Clintons’ finances have been a much-discussed topic after Hillary said in an interview that they were “dead broke” and were just trying to “make ends meet” after leaving the White House in 2001.
Clinton told Diane Sawyer “we had no money when we got there and we struggle to, you know, piece together the resources for mortgages, for houses, for Chelsea’s education. You know, it was not easy.”
Of course, the Clintons immediately bought a $2 million home in Chappaqua and another $3 million home in Washington.
The Clintons now have an estimated net worth of well over $100 million and possibly as much as $200 million. Bill has brought in more than $106 million just from speaking fees since he left office.