I don't think there's really any way around this. It just lowers the maximum amount you can extract via that tax. You have to tax at a rate low enough where it's not worth the expense to get around it in the first place. Maybe this is enough to make a wealth tax altogether not worth it federally (how much does it cost to set up a trust and transfer assets? can't be a lot), I don't know. But I think that's all part of the calculus of whether or not it's reasonable to institute the tax in the first place.