The drafting of a trust is limited — by the imagination of the taxpayer!  There are many objectives or missions that are possible with a trust.  A trust can be written to accomplish income tax savings — given the limits of the tax brackets of the grantor and the tax brackets of the beneficiaries.  A trust can be written to assist with estate tax planning.  A trust can be written to assist with probate planning.  You, as a grantor, can direct how the money is to be invested.  How the trust money is distributed is another mission — i.e. educational expenses, medical, life style, how much per year, at what age, and other permissions or restrictions make the “attachments”, or clauses, on this tool virtually without limit.  You direct who gets what, when, how much, and who.  You can use a trust as an asset protection tool.  You can have alternate trustees with different powers from one another.  The trust can be used for tax planning, estate tax planning, probate planning, asset protection,  for managing the financial affairs of spendthrifts, it can be used for minors, for incompetents, it can be used to help plan for or reduce federal, state or in some cases local level taxes.  Trusts can be used for helping to provide for your favorite charity.  Protection of family wealth can sometimes be very important.  The trust may be the tool you have been looking for to assist with the building, retention or protection of family wealth.  The trust can assist with tax and non-tax related concerns.
Trusts can be used to reduce Estate Tax or Income Tax
Other Trusts May be Better Suited For You
Consider Other Types of Trusts