Useful in order to avoid capital gains on the sale of assets in order to diversify or generate greater cash flow. Cash flow (typically 6% to 15% of the value of the asset transferred valued annually) is retained for life of one or more individuals or for a term of years not to exceed 20 years. The cash flow can be extended over multiple generations. Can be structured to provide a large current income tax deduction and deferral of income (cash flow) until later years. Can extend over the lifetime of senior family members and junior family members, but doing so will reduce the available income tax deduction. Often can provide greater cash flow to both senior family and junior family members. A useful repository for IRD (income in respect of a decent at death) from IRAs, other retirement plans, partnership interests, and various contract rights. Can reduce estate taxes and defer income taxes beyond the normal deferral rules. Can be created before or at death.