Meurer Law Offices, Denver, Colorado
The Spousal Lifetime Access Trust (SLAT) is just one of many options that we present clients of the Meurer Law Offices 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 Law Offices 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 Law Offices are here to help.
Call or contact our offices today to schedule your free consultation: 303-991-3544