Section 1.1 Introduction and Scope of Chapter

• Library: Trusts and Powers 2013 Supp

A. (§1.1) Introduction and Scope of Chapter

The “trust,” conceived by English common law in the early thirteenth century, has evolved into a device of great generality and flexibility for the management and disposition of property limited only by the imagination of the creator. Its popularity today results from the increasing economic well-being and prosperity in society, the increasing complexity of property management and investment decisions, and the ever more complex and complicated income, gift, and estate taxes imposed by federal and state governments. Its remarkable flexibility makes it one of the most effective, useful, and important estate planning tools and means by which wealth is managed and handed down from one generation to the next.

The use of trusts, inter vivos or testamentary, while not cost free, may result in significant estate and gift tax savings. Trusts may:

provide professional asset...