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Trust Protectors can be appointed in trust documents in most states. Some states have already formally recognized trust protectors (sometimes called special trustees) and therefore have "codified" trust protector statutes.


Transfers of certain property(s) to a partnership may result in a recognized taxable event because of the change of ownership of the property - from the transferor to the partnership. This concern is dependent on certain determinative criteria, such as the value of the prorata partnership interests owned (or not owned) by the partner/transferor, which need consideration at the time of transfer.


All transfers to a qualified charitable trust qualify for the gift tax deduction, dollar for dollar, and therefore will not be in the grantor's estate for transfer tax purposes upon grantor's death. Notwithstanding, if the charitable trust employs a term-of-years payout provision to grantor's children (for example) then the "projected" value of the future (interest) income stream to grantor's children shall be brought back into grantor's estate for transfer tax purposes.


A grantor of a charitable trust can procure income tax deductions based on the present value of the future interest of the gift. Transfers of IRAs or other qualified accounts into charitable trusts do not effectively generate income tax deductions - because taxes were obviously not paid, prior to the transfer, on the qualified account.


Generally, a grantor of an irrevocable insurance trust cannot retain a (reversionary) right to receive any benefit of income or principal from the trust; otherwise, the transfer to the trust will be deemed incomplete for transfer tax purposes. Exceptions to that rule are appearing now under state law. Alaska, most notably, passed the Alaska Trust Act which allows a grantor of an irrevocable insurance trust to be named as an "eligible beneficiary" when an independent corporate trustee is serving as trustee.

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