High-net-worth couples have no shortage of tools and strategies at their disposal to lower their tax obligations and pass on their wealth. But financial planners say one especially favorable arrangement has become a go-to in recent years—one that helps them pass on generational wealth while still benefiting from it during their lifetimes. It’s called a spousal lifetime access trust, or SLAT.
SLATs are irrevocable trusts that let the spouses maintain access to their assets while keeping them out of their taxable estate. A growing number of wealthy customers are using them to take advantage of high estate and gift tax exemptions, a strategy that can lead to significant tax savings over a lifetime.
