Trust B is Jack's trust, and it stays revocable as long as he is alive. When Jack dies, the property will go to Robert free and clear. It enables a surviving spouse to postpone estate taxes that would otherwise be due when the first spouse dies. And there are many different types of charitable trusts, which involve making a sizable gift to a tax-exempt charity. Some of them provide both income tax and estate tax advantages.
Some people think about giving all their property to avoid estate taxes.
The government has long anticipated this one. Of course, there are risks with this kind of gift-giving program. The most obvious is that you are legally transferring your wealth. Gift giving to reduce eventual estate taxes must be carefully evaluated to see if you can comfortably afford to give away your property during your lifetime. Any property given to a tax-exempt charity avoids federal gift taxes.