Monday, June 25, 2018

Spousal Lifetime Access Trust (SLAT)


As discussed many times in this publication, the newly enacted tax plan has provided some additional planning opportunities for high net worth individuals due to the doubling of the estate and gift tax exemption. Specifically, under the new tax regime, the estate and gift exemption has been increased to $11,180,000 per person (for 2018) with slight annual adjustments moving forward.

A strong planning technique available for individuals to utilize this increased exemption is through a Spousal Lifetime Access Trust (SLAT). A SLAT is an irrevocable trust for the benefit of a grantor’s spouse (and descendants), with the spouse serving as Trustee.

Since the grantor’s spouse is both a trustee and beneficiary, the spouse may access the assets within the irrevocable trust should the need arise. Thus a SLAT enables a grantor to remove assets from his or her estate yet still retain some control and access to the funds via his or her spouse.

Please do not hesitate to contact Morris Law Group should you have any questions about Spousal Lifetime Access Trusts.