I Asked ChatGPT How the Rich Hide Money in Trusts: Here’s Its Explanation

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Laura BeckSat, November 22, 2025 at 12:06 PM GMT+1 6 min readTrusts are the invisible vaults where generational wealth quietly compounds away from taxes, lawsuits and public scrutiny. GOBankingRates asked ChatGPT to explain how the ultra-wealthy use these legal structures to shield fortunes.Find Out: I Asked ChatGPT To Explain How Rich People Avoid Taxes Like I’m 12 — Here’s What It SaidRead Next: 6 Subtly Genius Moves All Wealthy People Make With Their MoneyThe AI’s answer revealed strategies that keep billions flowing through families for generations without triggering the tax bills that ordinary Americans face.ChatGPT started with the basics. A trust is “a legal arrangement where one party (the trustee) holds and manages assets for the benefit of another (the beneficiary).”The person creating the trust (the grantor) transfers ownership of assets like money, property, stocks, companies or art into the trust. Once inside, those assets “technically no longer belong to the individual.”That ownership shift is where tax and privacy advantages begin. Assets in trusts avoid estate taxes, can’t easily be targeted in lawsuits or divorces and become harder to track publicly since financial disclosures often don’t require listing trust contents.Learn More: If Wealth Was Evenly Distributed Across America, How Much Money Would Every Person Have?ChatGPT explained the first strategy: getting wealth off your personal balance sheet.“Once wealth is in a trust, it’s no longer listed under the grantor’s personal ownership,” the AI said. This shields assets from estate taxes if structured correctly, protects them from lawsuits and divorces and makes them harder to track publicly.Here’s the example ChatGPT provided: “A billionaire can transfer $100 million in stock into an irrevocable trust. On paper, they no longer ‘own’ that stock — the trust does — but their children (or even they indirectly) remain the beneficiaries.”You’ve legally separated ownership from benefit. The assets are protected and tax-advantaged, but the family still controls and enjoys them.ChatGPT highlighted grantor trusts as allowing “someone to maintain control over how the money is used, while still enjoying tax benefits.”The grantor can pay taxes on the trust’s income themselves, which reduces their taxable estate even further while the trust assets grow untouched by those tax payments.The AI summarized it well: “I don’t own this money, but I decide how it’s used — and I pay the taxes so my heirs don’t have to.”This structure lets wealthy individuals maintain practical control over assets they’ve technically given away, getting the best of both worlds.Condizioni e Informativa sulla privacyPrivacy & Cookie SettingsMore InfoS&P 5006,602.99 +64.23 (+0.98%)Dow 3046,245.41 +493.15 (+1.08%)Nasdaq22,273.08 +195.03 (+0.88%)Russell 20002,369.59 +64.48 (+2.80%)VIX23.43 -2.99 (-11.32%)Gold4,079.50 +19.50 (+0.48%)PortafoglioEffettua l'accesso per consultare il tuo portafoglioAccediMaggiori rialziBLLN BillionToOne, Inc. 110.00 +14.32 (+14.97%)ADPT Adaptive Biotechnologies Corporation 18.61 +2.29 (+14.03%)KYIV Kyivstar Group Ltd. 12.93 +1.41 (+12.24%)CAVA CAVA Group, Inc. 48.92 +5.33 (+12.23%)HTFL Heartflow, Inc. 30.85 +3.18 (+11.49%)Maggiori ribassiESTC Elastic N.V. 70.04 -12.04 (-14.67%)VEEV Veeva Systems Inc. 244.06 -26.44 (-9.77%)POST Post Holdings, Inc. 99.42 -7.66 (-7.15%)FRMI Fermi Inc. 14.34 -1.07 (-6.94%)MENS Jyong Biotech Ltd. 30.74 -2.06 (-6.28%)I più scambiatiNVDA NVIDIA Corporation 178.88 -1.76 (-0.97%)OPEN Opendoor Technologies Inc. 6.75 +0.59 (+9.58%)ONDS Ondas Holdings Inc. 6.74 +0.47 (+7.42%)PLUG Plug Power Inc. 1.9800 +0.0900 (+4.76%)TSLA Tesla, Inc. 391.09 -3.96 (-1.00%)Eventi relativi agli utiliI miei eventi relativi agli utiliEventi relativi agli utiliTicker più popolariBTC-USD Bitcoin USD 86,263.58 +2,185.08 (+2.60%)ETH-USD Ethereum USD 2,813.99 +80.31 (+2.94%)XRP-USD XRP USD 2.03 +0.11 (+5.81%)BTC-EUR Bitcoin EUR 74,858.84 +1,896.20 (+2.60%)SOL-USD Solana USD 129.69 +2.96 (+2.33%)Principali eventi economici