There is a type of trust that is even more attractive today with the raising of the estate and gift tax exemptions and can last indefinitely to pass money down between generations of a family. These “dynasty trusts” could be a great deal for many wealthy people, according to Bloomberg in "Heirs of Heirs of Heirs of Heirs Love Dynasty Trusts."
Married couples can put up to just over $22 million into a dynasty trust today, without a tax penalty. If those assets are invested wisely, the proceeds from the investments can be used by the family for a long time, perhaps even forever.
Heirs do not have to pay any capital gains on the trust assets, until an asset is sold. However, they most likely be required to pay income taxes on any distributions.
People with enough money to create a dynasty trust, might want to consider the option, while they have it. However, these trusts are only available in a few states, so it is important to set up where it is legal.
An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and could include a dynasty trust.
Reference: Bloomberg (June 10, 2018) "Heirs of Heirs of Heirs of Heirs Love Dynasty Trusts."