Overview
A SLAT is an irrevocable trust created by one spouse for the benefit of the other. Assets transferred are removed from the grantor's taxable estate, but the non-grantor spouse retains access to trust assets during their lifetime. This provides asset protection while maintaining indirect access to wealth through your spouse.
Best For
- Married couples wanting to use estate tax exemptions now
- Couples concerned about future exemption reductions
- Those wanting asset protection with spousal access
- High net worth couples planning ahead
Key Features
- ✓ Removes assets from grantor's taxable estate
- ✓ Spouse retains access as beneficiary
- ✓ Locks in current estate tax exemption
- ✓ Asset protection from creditors
- ✓ Indirect access to wealth through spouse
- ✓ Trust Protector provisions
📊 Tax Benefits
- ✓ Estate tax removal for transferred assets
- ✓ Locks in current exemption before potential reduction
- ✓ Future appreciation excluded from estate
- ✓ Can be structured as grantor trust for income tax
- ✓ GST exemption allocation available
Considerations
- Must be created by one spouse for the other
- Irrevocable — cannot be undone
- Access depends on marriage remaining intact
- Reciprocal trust doctrine — spouses cannot create identical SLATs
- Should be reviewed by estate planning attorney