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Spousal Lifetime Access Trust (SLAT)

What is it?

A SLAT is an irrevocable trust created by one spouse for the benefit of the other. Assets transferred to the SLAT are removed from the grantor's taxable estate, but the non-grantor spouse retains access to the trust assets during their lifetime. This provides asset protection while maintaining indirect access to wealth through your spouse.

Why is it important?

A SLAT allows married couples to use their estate tax exemption now (before it potentially decreases) while still maintaining access to wealth through the beneficiary spouse. It protects assets from creditors, lawsuits, and estate taxes while keeping the family's lifestyle intact. If the exemption drops in the future, assets already in the SLAT are grandfathered.

Example Language

Spouse A creates an irrevocable SLAT naming Spouse B as the primary beneficiary. Spouse A transfers $12 million to the trust, removing it from their taxable estate. Spouse B can receive distributions for health, education, maintenance, and support. The Trustee may also make distributions at discretion. If Spouse A needs funds, Spouse B can use trust distributions to support the household.