A.N. Pritzker was notorious for creating protected trusts in off-shore accounts for his family beginning in the 1930s, many of which are still legal. The trust in question, however, was based in the state of Illinois. In January 2002, the trustees of the Linda Trust created a new Autonomy 3 Trust based in Texas, and petitioned that the trust be subject to the laws of Texas. The trust was so created, and therefore immune from Illinois taxes. Despite this, Illinois assessed taxes assessed on the new trust, which were ruled invalid and ordered refunded.
Such machinations are very complicated, and perhaps should come with a warning such as Dont try this at home. Contact us at (714) 963-7543 to discuss your trust and estate needs.