SLAT
Spousal lifetime access trust — irrevocable trust funded with gift; spouse is a beneficiary (along with descendants). Removes appreciation from grantor's estate while preserving indirect spousal access.
| Facet | Detail |
|---|---|
| Also called | Spousal lifetime access trust |
| A-B / A-B-C role | None — lifetime gifting strategy |
| When created | During grantor's life |
| Revocable | No |
| Inter vivos / testamentary | Inter vivos |
| Typical beneficiaries | Spouse and descendants |
| Primary purpose | Estate reduction with marital access safety valve |
| Marital deduction | No — lifetime gift, not marital transfer at death |
| Uses estate exclusion | Uses lifetime gift/estate exemption at funding |
| In survivor's estate | No — if spouse has no general power of appointment |
| Basis step-up | No — carryover basis on gifted assets |
| Income tax | Non-grantor or grantor depending on drafting |
| Crummey powers | Sometimes |
| GST / dynasty | Common for multi-generation SLATs |
| Spendthrift | Yes |
| See-through (IRA) | Not typical |
| Key tradeoff | Estate savings vs gift tax on funding; **reciprocal trust** risk if both spouses create mirror SLATs |