How the wealthiest Americans use this one weird trick to avoid $100 billion in taxes

By Travis Gettys
Tuesday, December 17, 2013 15:42 EST

The wealthiest Americans have avoided paying about $100 billion in taxes through a loophole that essentially makes estate taxes voluntary, according to the attorney who devised the legal maneuver.

Under current law, the wealthy must pay taxes on estates valued at more than $5.25 million for an individual or $10.5 million for couples, with the top rate capped at 40 percent.

But many billionaires get around these taxes by shuffling their company’s stock in and out of trusts, which allows them to give away millions of dollars to their heirs while avoiding taxes on gifts valued at more than $14,000.