I get it, and I agree (athough I don't entirely understand the details). I'm just being a mildly sarcastic ass.I hate tax law that it written to benefit .01% of the population to the absolute detriment of the rest of the population. I'm in the range of society where it makes sense for me to think about having a trust for forward planning. It will save my family nothing at the end of the day, but make legal process easier.
Example: Let's say you have $3mm of AAPL stock in a non-retirement account. You want to diversify it, so that you aren't at total risk to AAPL. You set up a Charitable Remainder Income Trust (CRIT) and move all of the funds there. Depending on how much you intend on distributing in your lifetime (you can do a jt life, single life, or up to 25yrs), you can take a taxable write-off of up to 75% of that amount. Because that money is now in a charitable trust (that you control), you can now trade the investments with no capital gains tax. And you can decide to distribute oh... 10% per year. But what about your kids? They will be upset that you're not giving them their inheritance! Not to worry! Just setup an Irrevocable Life Insurance Trust (ILIT) for $3mm. You can use part of the $300k/yr you are distributing from the CRIT to pay for the $5mm insurance policy up front and just pay the gift tax on that smaller amount. Because the ILIT is no longer part of your trust, since it's irrevocable, it will not impact your lifetime gift/estate tax, allowing you to transfer $5mm to your kids for (after the CRIT deduction and ILIT transfer) for ~+$250k to you. You literally just made money out of thin air by setting up trusts properly. You only need a couple of million dollars to start with. Sure, the trusts might have cost you $25k, but who the fuck cares? You just made $250k.
That's what I'm getting at.