Spousal Lifetime Access Trust, Lockbox Trusts, and Residence Trusts
Meurer & Potter Law Office, Denver, Colorado
Not every asset protection strategy requires moving assets to Wyoming or going offshore. For married couples, business owners, and homeowners in Colorado, three trust structures offer powerful domestic protection while allowing you to retain beneficial access to the assets you’re protecting: the Spousal Lifetime Access Trust (SLAT), the Lockbox Trust, and the Qualified Personal Residence Trust (QPRT).
At Meurer & Potter, P.C., our Denver asset protection attorneys use these trusts as part of a layered protection strategy—often in combination with LLC structuring and Wyoming DAPTs—to create comprehensive plans tailored to each client’s risk profile and financial goals. We’ve been implementing these strategies since 1991.
Call 303-991-3544 for a free consultation about which trust structures fit your situation.
Secure Your Legacy and Your Spouse’s Future in One Strategic Move
Spousal Lifetime Access Trust
The Spousal Lifetime Access Trust (SLAT) is just one of many options that we present clients of the Meurer & Potter Law Office when assisting them with estate planning. At its core, the SLAT is an irrevocable trust established by one spouse (the grantor) to benefit the other, as well as future generations such as their children and grandchildren.
A unique and highly beneficial method depending on your circumstances, the SLAT removes assets from your estate and transfers them to your spouse as a gift, which uses your gift tax exemption. And unlike an Irrevocable Life Insurance Trust, spouses can receive distributions prior to the grantor spouse passing away. The trust is also exempt from incurring income taxes if its assets generate revenue or increase in value. And when it’s passed on to the next generation, all proceeds and appreciation are not subject to estate tax.
We highly recommend speaking with our attorneys at the Meurer & Potter Law Office if you wish to set up a Spousal Lifetime Access Trust. There are many factors to take into consideration and intricacies to understand prior to establishing a type of trust that cannot be changed or canceled. For example, as grantor, you only have access to your trust assets through your beneficiary spouse. In case of their death or a divorce, you lose access to all of those funds. And while a dual strategy might mitigate that risk, you’ll need to avoid what’s known as the reciprocal trust doctrine.
As you can see, a Spousal Lifetime Access Trust comes with many benefits and many complications. That’s why our attorneys at the Meurer & Potter Law Office are here to help.
Lockbox Trusts
Safekeeping Your Assets
A Lockbox Trust is an irrevocable trust designed to hold and protect specific high-value assets—investment accounts, business interests, valuable personal property—in a structure that is extremely difficult for creditors to reach. Unlike a SLAT, the creator does not retain beneficial access. The trust is managed by an independent trustee in accordance with its terms, and distributions are made to named beneficiaries (typically family members).
Lockbox Trusts are used when the asset’s protection is more important than ongoing access. They are effective for generational wealth transfers, protecting assets from beneficiaries’ creditors (including divorce), and shielding specific assets—such as a family business interest—from a high-risk spouse’s personal liability exposure.
Qualified Personal Residence Trust (QPRT)
Securing Your Home’s Future, One Generation at a Time
A Qualified Personal Residence Trust removes your home from your taxable estate while allowing you to continue living in it for a specified term of years. At the end of the term, the home transfers to your beneficiaries (usually your children) at a substantially reduced gift tax value. If you survive the trust term, the home is completely out of your estate for estate tax purposes.
QPRTs are particularly valuable for Colorado homeowners in high-value real estate markets like Cherry Hills Village, Greenwood Village, and the Denver Tech Center area, where home values represent a significant portion of the estate. The trade-off: if you die before the trust term ends, the home reverts to your estate as if the trust were never created. We help clients select an appropriate trust term based on life expectancy and estate planning goals.
Frequently Asked Questions About Access, Lockbox and Residence Trusts
Our FAQs offer practical guidance about Access, Lockbox and Residence Trusts. They are written to help you stay informed, not overwhelmed.
A SLAT is an irrevocable trust created by one spouse for the other’s benefit. It removes assets from the creating spouse’s estate and protects them from that spouse’s creditors while the beneficiary spouse retains access to the trust’s income and principal.
Yes, but reciprocal SLATs must be carefully structured to avoid the “reciprocal trust doctrine,” which could cause the IRS to disregard both trusts. The trusts must have meaningfully different terms. We draft each SLAT with distinct provisions to mitigate this risk.
The creating spouse loses access to the trust assets because the beneficiary spouse is the trust’s beneficiary, not the creator. This is the primary risk of a SLAT and should be discussed thoroughly during planning.
A Lockbox Trust protects specific high-value assets by placing them in an irrevocable trust where the creator no longer has access. It is commonly used for generational wealth transfers and shielding assets from beneficiaries’ future creditors or divorces.
Yes. You retain the right to live in your home for the trust’s specified term. After the term expires, the home transfers to your beneficiaries. If you want to remain in the home after the term, you can lease it from your beneficiaries at fair market value.