What is a Spousal Lifetime Access Trust? - Seth Schlessel

From Schlessel Law PLLC – In this podcast episode, we explore the article "What is a Spousal Lifetime Access Trust?" and break down this powerful estate planning tool designed to protect your wealth while providing financial security for your spouse. A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust that enables a grantor to transfer assets into a trust, leveraging the benefits of the federal lifetime gift exemption to reduce the taxable estate and minimize estate taxes.

In our discussion, we detail how the SLAT functions by allowing the non-grantor spouse to receive distributions during their lifetime, ensuring continued access to funds while keeping assets protected from creditors. By using a SLAT, couples can effectively shield their wealth from potential claims while taking advantage of significant gift tax exemptions, as outlined by the Tax Cuts and Jobs Act of 2017 (TCJA).

The podcast also delves into the nuances of New York trust laws that influence the structure of SLATs, including careful consideration of the IRS reciprocal trust doctrine to maintain tax benefits. We examine how the irrevocable nature of a SLAT, coupled with grantor trust treatment for annual income taxes and potential capital gains tax considerations, works to preserve assets and secure your family's financial future.

For listeners looking to understand more about asset protection strategies and the practical implementation of a SLAT, this episode offers clear insights and guidance from our NY asset protection lawyers. To learn more about setting up a Spousal Lifetime Access Trust and other estate planning solutions, please contact us at (516) 574-9630.

Schlessel Law PLLC

34 Willis Ave Suite 300, Mineola, NY 11501, United States

(516) 574-9630

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