Estate planning for the happily married – Hedge your bets with a SLAT

Description

Abstract: One of the biggest challenges of estate planning is dealing with uncertainty. For example, there’s uncertainty over whether the gift and estate tax exemption will be halved in 2026, not to mention growing economic uncertainty. What if an individual gives away substantial amounts of wealth now, but if financial circumstances change for the worse in the future he or she will need additional funds? One solution is using a spousal limited access trust, sometimes referred to as a spousal lifetime access trust (SLAT). This article explains how a SLAT works. A brief sidebar explains the ins and outs of having spouses each create their own SLAT.