{"id":16921,"date":"2023-01-23T21:03:00","date_gmt":"2023-01-23T21:03:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=16921"},"modified":"2023-01-24T20:04:19","modified_gmt":"2023-01-24T20:04:19","slug":"slat-trust","status":"publish","type":"post","link":"https:\/\/businessyield.com\/estate-planning\/slat-trust\/","title":{"rendered":"SLAT TRUST: How To Effectively Plan Your Slat Trust (+Detailed Guide)","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

Planning an estate could sometimes be a bit difficult but it’s an important part of your financial planning, I know that you would not like to stare down your own mortality. Therefore, if you’ve been thinking about how you would want to pass on your legacy when you die then make a slat trust your next option. However, For effectively planning of slat trust, this article is a detailed guide leaving you with its form, pros, and cons as well as a general overview of what slat trust is all about.<\/p>\n\n\n\n

What is Slat Trust?<\/span><\/h2>\n\n\n\n

A SLAT is an acronym for Spousal Lifetime Access Trust. It is an irrevocable trust<\/a> set up by a spouse for the other during their lifetime. This means this trust is created when the donor spouse is still alive. This is a perfect difference between SLAT and other types of marital trusts that are only done upon death. <\/p>\n\n\n\n

They are an inexpensive estate planning<\/a> tool for couples. As such, they are also are basically an asset protection tool. Meanwhile, it gives access to the gifted funds to the beneficiary spouse, and potentially other beneficiaries such as children and grandchildren instantly.<\/p>\n\n\n\n

Read Also: REVOCABLE TRUST: What is Living Revocable Trust?<\/a><\/p>\n\n\n\n

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Image Credit: Mericle & Company(Slate Trust)<\/em><\/figcaption><\/figure>\n\n\n\n

However, there are many kinds of trusts that function in many ways, but some fall under the category of marital trusts. Thus this kind of trust represents the best way to ensure your spouse is financially secure after you pass away. Besides even with lots of marital trusts there\u2019s a great variety, that makes it difficult to determine which one is right for you. Moreover, as part of an estate Plan, slat is one of the best asset protection tool.<\/p>\n\n\n\n

Although, the larger your estate, the larger your federal estate tax liability. Therefore, if you have a federal estate worth more than $25 million then you want take advantage of higher estate tax exemptions, opt for a spousal lifetime access trust (SLAT).<\/mark><\/mark><\/p>\n\n\n\n

Slat Trust Planning<\/span><\/h2>\n\n\n\n

Establishing a slat trust is a common part of an estate planning process. It is also a great way to reduce your estate tax liability. Desiring for one can help save more money for your family and beneficiaries.<\/p>\n\n\n\n

A SLAT trust is an estate planning strategy that can perhaps address conflicting objectives. This type of trust is created by the donor spouse. He\/she gifts his\/her property to an irrevocable trust for the benefit of the other spouse also known as the non-donor spouse. In addition, they may also include other family members e.g children and grandchildren as beneficiaries. Howbeit the donor spouse can use their federal exclusion in transferring assets to the SLAT. <\/p>\n\n\n\n

Read Also<\/em>: Grantors Trust: A Simple definitive guide (Updated!)<\/a><\/p>\n\n\n\n

Slat Trust Form<\/span><\/h2>\n\n\n\n

The slat trust form is a legal document that contains list of properties or assets to the transferred into the trust. Therefore before it can be legally bonded, the slat trust form must contain the following;<\/p>\n\n\n\n