Put an income producing asset into a trust like that and you have the pre-tax income going to the next generation with the grantor paying the income tax.
Most trusts (non-grantor trusts) pay tax on capital gains and accumulated income that stays in the trust, while the beneficiaries pay tax on income that is distributed to them.
When structured as a grantor trust, the tax benefit of donations should pass back to the person who created the trust when those donations are made, but the creditor would have to first unwind the trust before attempting to clawback donations.