What is a SLAT?
A SLAT is an irrevocable trust created by one spouse (the "donor") for the benefit of the other spouse. It is a powerful tax-planning strategy designed to:
Reduce Estate Taxes: By gifting assets to the trust, the donor spouse removes those assets (and their future appreciation) from their taxable estate.
Maintain Indirect Access: Unlike most irrevocable gifts, the donor spouse retains "indirect" access to the assets because the beneficiary spouse can still receive distributions for their needs.
Utilize Exemptions: The donor uses their lifetime gift tax exemption to fund the trust, locking in current exemption levels.
Why use a SLAT?
SLATs are ideal for married couples who want to minimize future estate taxes but are hesitant to lose total access to their wealth. It provides a "safety net" by allowing the beneficiary spouse to access income or principal if needed, providing peace of mind while securing significant tax savings for heirs.
Can I create a SLAT with Wealth.com?
While Wealth.com provides comprehensive Revocable Planning tools, our platform does not currently support the automated drafting of SLATs or other irrevocable tax-strategy trusts.
Because SLATs are complex and require specific "reciprocal trust" considerations to be legally effective, they must be drafted by a qualified attorney.
How to proceed:
If you or your client are interested in a SLAT:
Consult an Expert: We recommend working with an estate planning attorney who specializes in high-net-worth tax strategies.
Wealth.com Attorney Network: You can request a referral to an attorney in our network who can provide custom drafting services for an additional fee.
Document Storage: Once your SLAT is executed, you can upload a digital copy to your Wealth Vault to ensure it is integrated into your total estate overview.