Even when they can occasionally get at principal, many income heirs prefer TRUs.

FORBES: New Cash From Old Trusts

While all states allow new trusts to be set up as TRUs ( Forbes, Mar. 8, 1999), trust powerhouse Delaware was the first with a conversion law.

FORBES: New Cash From Old Trusts

TRUs and "power of adjustment" trusts share another advantage: The income beneficiary can get more of his payout in the form of capital gains, taxed at a maximum 20% rate.

FORBES: New Cash From Old Trusts