GOP Senate Hopeful McCormick Owns ‘Throne Trust’ To Avoid Wealth Taxes

GOP Senate Hopeful McCormick Owns ‘Throne Trust’ To Avoid Wealth Taxes

Pennsylvania GOP Senate candidate Dave McCormick at an event on May 17, 2022 in Pittsburgh.
Jeff Swensen/Getty Images

  • Dave McCormick, the presumptive GOP candidate for Senate in Pennsylvania, is incredibly wealthy.
  • He also has something called a “dynasty trust” worth up to $2.2 million.
  • This allows owners to pass on their wealth for generations – potentially forever – without wealth tax.

Former Bridgewater CEO Dave McCormick, who is sure to run for the GOP Senate in Pennsylvania, is incredibly wealthy.

Here’s the main reason he’s running in the first place: This year, national Republicans have preferred to hire wealthy candidates who are willing to spend millions on their campaigns.

And after spending $14.3 million on a failed Senate bid in 2022, McCormick loaned $1 million to his current campaign to unseat Democrat Sen. Bob Casey.

While his stratospheric wealth may attract strategists and top GOP operatives aiming to take back the Senate this year, McCormick has personal finances that could tarnish his image in the Rust Belt state he wants to claim for the GOP.

Among them is the “dynasty trust”.

The transmission of wealth from generation to generation

According to his 2024 financial disclosure, McCormick and his wife have at least $123 million in assets, which would make him one of the wealthiest members of Congress if elected.

Between $1.1 million and $2.25 million is held in an account called the “David H McCormick 2020 Dynasty Trust.”

A dynasty trust is essentially a money pot used by the ultra-rich to pass wealth down to future generations without paying certain wealth taxes.

In general, taxation in the United States has tried to curb dynastic wealth with estate taxes, gift taxes, and even an inheritance tax to reduce wealth passed down from generation to generation. For someone like McCormick, the official property tax would be about 40%.

But dynastic trusts have exploded in recent years, with several states changing their laws to allow these trusts to exist for hundreds of years, if not forever.

In Pennsylvania — where McCormick has a home and is running for Senate — dynastic trusts can last forever. In Connecticut, where McCormick actually lives, they can live up to 800 years.

It’s also possible that McCormick set it up in a state like South Dakota, which in recent years has become a haven for dynastic trusts because of its lack of income or inheritance taxes.

Trust records are generally confidential, and McCormick’s campaign did not respond to a request for comment on where the trust was established — why it created the trust — leaving the public in the dark about the details.

$37,000 in private jet flights in recent months

Aside from the dynastic trust, there are other aspects of McCormick’s wealth that raise eyebrows.

As first reported by The Messenger and confirmed by Business Insider via court documents, McCormick and his ex-wife had six accounts at Credit Suisse, a Swiss bank that allowed them to avoid taxes, in 2014, according to their then-divorce records. He had $4.3 million.

Those accounts do not appear in McCormick’s Senate disclosures for the past two years, and his campaign has not yet said whether it has any of them.

As Vanity Fair first reported, McCormick uses a private jet to travel back and forth between his Connecticut and Pennsylvania homes — and recent campaign documents offer a clearer window into the frequency and cost of those flights.

According to McCormick’s campaign’s year-end disclosures covering the last three months of 2023, he spent a total of more than $37,000 of his own money on the service on 11 separate payments — indicating that he used planes frequently.

Leave a Comment

Your email address will not be published. Required fields are marked *