Such trusts can be structured to last through your lifetime and your children's lifetimes until the last of your grandchildren dies, when the assets will pass to your great-grandchildren. Thus, the trust can provide decades of asset protection and wealth building, along with estate tax avoidance. If the trust were to utilize Variable annuities, they could also benefit from continuous income tax-deferred growth and guaranteed death benefit protection for the principal, as well as many other potential optional benefits they might want to take advantage of. After your death, your surviving spouse gets s lifetime income and a limited right to the trust assets. Then the trust fund will pass to your children and grandchildren without another round of estate taxes.
Municipal bonds are a conservative way to increase assets steadily, tax free.
Growth stocks are more volatile, but the long-term returns should be much higher. As long as the stocks don't pay significant dividends and you hold the trading down, the annual tax bill won't be too great. After 20-30 years, though, stocks or bonds might generate a high return as well. And last, a combination or mixture of both life insurance and variable annuities often make the best overall plan. This information is NOT meant to be taken as Legal advice.