Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, April 16, 2018

Exploring the Spousal Lifetime Access Trust

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-04-16/8dae478c-e24d-41bc-a974-e59bc0e023ce.pngA settlor may use the Spousal Lifetime Asset Trust (SLAT) for the continued benefit of a spouse and children. A SLAT is an irrevocable trust that potentially reduces exposure to estate taxes while providing the beneficiary-spouse with access to the trust corpus or trust income. With other estate planning tools, a bypass trust for example, the settlor-spouse must have passed away for the surviving spouse to access trust assets. Another major benefit of the SLAT is that the beneficiary-spouse can access trust funds using the gift tax exemption without suffering a “permanent loss.” While a SLAT has a number of beneficial characteristics, there are some considerable potential drawbacks. Notably, in the case of divorce or death, the settlor-spouse might not have access to assets in the trust.

See Inna Fershteyn, Esq., Exploring the Spousal Lifetime Access Trust, Brooklyn Trust & Will, April 17, 2018.

Special thanks to Alexander Evelson for bringing this article to my attention. 

http://lawprofessors.typepad.com/trusts_estates_prof/2018/04/exploring-the-spousal-lifetime-access-trust.html

Estate Planning - Generally, Trusts | Permalink

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