Establishing a spousal lifetime access trust (SLAT) can be a smart move for many couples looking to enhance their estate plan.
SLATs offer a way to protect assets, provide income for a spouse, and reduce estate taxes, making them a valuable tool in planning for the future.
Protecting assets and providing income
A SLAT allows one spouse to create a trust for the benefit of the other, while still keeping the assets out of the estate for tax purposes. The spouse who benefits from the trust can receive income from it, while the trust assets remain protected. This is particularly helpful for couples who want to ensure their loved one is provided for while also safeguarding their assets from creditors or other risks.
Reducing estate taxes
One of the main benefits of a SLAT is the potential for estate tax savings. By transferring assets to the trust, those assets are removed from the grantor’s taxable estate. This can help reduce the overall estate tax burden, which is especially important for high-net-worth individuals. With careful planning, a SLAT can help preserve more of your wealth for future generations.
Maintaining flexibility
SLATs offer flexibility that can be important in an estate plan. You can structure the trust to provide income to the beneficiary spouse while also allowing for distributions to children or other family members if needed. This adaptability makes SLATs a great option for families with changing needs or circumstances. In Florida, where family dynamics and financial situations can vary widely, having a flexible estate planning tool like a SLAT can be a major advantage.
Planning for a secure future
Establishing a spousal lifetime access trust can provide financial security for your spouse. By including a SLAT in your estate plan, you can ensure your loved ones are well taken care of while maximizing the benefits of your wealth.
