Spousal Lifetime Access Trusts ("SLATs")
A Spousal Lifetime Access Trust (“SLAT”) is an irrevocable trust that you may establish for the benefit of your spouse and descendants. Transfers you make to the SLAT are completed gifts for transfer tax purposes, and allow you to move an asset and the growth on the asset outside of your estate. The SLAT is often designed to be a fully discretionary trust, providing creditor protection to the beneficiaries, and greater flexibility for distributions to your spouse. A SLAT can be implemented into an estate plan to lock in current exemptions and to freeze the value of your estate. The benefit of the SLAT is that may benefit from the income and principal of the trust, assuring resources to your family members.
For more information about how a SLAT may work with your estate plan, please contact us.