Trusts are extremely valuable estate planning tools. They are extensively used in connection with property held for minors, life insurance, marital deduction bequests, and charitable transfers.

Generally speaking, a trustee may be given broad powers to benefit the beneficiaries of the trust. If the trust is irrevocable, and the grantor retains no significant control over it, the trust property can be removed from the grantor's gross estate. Further, a beneficiary can receive substantial lifetime benefits under the trust without having the trust principal included in his or her gross estate.