Gift from Client to the Trust

Generally Equal to the Client’s Remaining Gift Tax Exemption

Spousal Lifetime Access Trust(SLAT)

Irrevocable trust established for the benefit of the client’s spouse until the spouse’s death.Upon the spouse’s death, the remaining assets may remain in trust for the client’s descendants (or other beneficiaries) or be distributed to them outright.

During Spouse’s Life

The trustee may make discretionary distributions of income and/or principal to or for the benefit of the client’s spouse. If desired, the client’s children and more remote descendants (or other beneficiaries) may be included as discretionary beneficiaries of the trust.

The initial gift to the trust is to taxable gift. Ideally, the property will appreciate in value. Upon the spouse’s death, the remaining trust assets and appreciation pass to the client’s descendants (or other beneficiaries), estate tax free.

Upon Spouse’s Passing

Remaining trust assets may remain in trust for the client’s descendants (or other beneficiaries) or be distributed to them outright and free of trust.

If the client allocates the client’s exemption from generation-skipping transfer taxes to the initial gift to the trust, the assets can continue to be held in a dynasty trust for the benefit of multiple generations without the imposition of estate, gift or generation-skipping transfer taxes at each generation.