Rich Californians deploy creative ways to get around hated billionaire tax including giving cash away

California’s wealthiest residents are scrambling to shield their fortunes as November comes closer with the controversial billionaire tax — with some accelerating charitable donations, buying luxury vacation homes and even joking about divorce to soften the blow.The proposed measure, if passed, would impose a one-time levy of up to 5% on the net worth of Californians worth more than $1.1 billion, based on their wealth at the end of this year if they were state residents on Jan.1.

Lower rates would gradually phase in for fortunes just above the $1 billion mark.That prospect has triggered a flurry of calls to tax advisers, estate planners and attorneys as billionaires and near-billionaires search for ways to reduce their exposure or avoid the tax altogether.Some wealthy Californians have already left the state, while others are determined to stay and instead rearrange their finances.Veteran tax and estate adviser Andrew Katzenstein told the Wall Street Journal that one longtime client — a real estate investor with deep ties to California — has no plans to move despite concerns over the proposal.The investor and his advisers have been examining ways to make his finances more “tax-efficient,” including speeding up charitable giving plans that he and his wife had already been considering.“People take steps to take advantage of the tax law before it changes all the time.This is just another example of that,” said Katzenstein, a partner at accounting firm HCVT who is advising multiple clients on the proposal.The investor has already donated hundreds of millions of dollars to charity over the years and believes additional giving would be preferable to handing more money to Sacramento, according to Katzenstein.Other wealthy residents are considering more unconventional moves.Jon Feldhammer, managing partner of the San Francisco office of Baker Botts and a former IRS trial attorney, said one early employee at an artificial intelligence company expects roughl...