Why You Should Consider a Spousal Lifetime Access Trust (SLAT) Before 2026?
Estate planning can feel overwhelming, especially with changing tax laws. One tool that's gaining popularity among high-net-worth couples is the Spousal Lifetime Access Trust (SLAT). If you're looking to preserve your wealth and minimize estate taxes, understanding SLATs is crucial. Here’s a breakdown of what they are, how they work, and why you should consider setting one up before January 1, 2026. What's a SLAT? A SLAT is an irrevocable trust that one spouse creates for the benefit of the other. The goal? To transfer assets out of your estate while still providing financial security for your spouse. This strategy can help you use the current high federal estate tax exemption before it potentially drops. Current and Future Tax Exemptions Right now, each person can transfer up to $13.61 million without incurring federal estate taxes. For married couples, that means you can shield up to $27.22 million. But here's the kicker: On January 1, 2026, this exemption is ...