Trusts Under Attack – The Legislative Landscape

Reducing perceived wealth disparity in the United States has become a major political goal of the Biden Administration and the Democratic Party. That goal, together with the goal of increased transparency concerning ownership, have resulted in a number of legislative proposals, which, if enacted will fundamentally alter tax planning regimes for the wealthy. This article explores some of these recommendations and their effects.

PANDORA PAPERS/ENABLERS ACT

In an unprecedented leak, The Washington Post and the International Consortium of Investigative Journalists ("I.C.I.J.") gained access to more than 11.9 million confidential documents maintained by trust and corporate services providers around the world. The records, known as the Pandora Papers, revealed that that foreign political and corporate leaders or their family members moved money and other assets from long-established tax havens to U.S. trust companies. The investigation identified 206 U.S.-based trusts