A road map to successful implementation of a spousal lifetime access trust (SLAT)

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Want to leave more for your kids and less to the government? Gift and estate tax exemptions are the highest they’ve ever been and are set to change at the end of 2025. Give more to your heirs with spousal lifetime access trusts (SLATs), one of the most popular vehicles to “lock in” exemptions.

1. Review financial plan

Discuss the family’s long-term financial plan to determine the appropriate amount of the irrevocable gift to the SLAT.

2. Draft the trust agreement(s) for the SLAT

Identify the state law best suited for governing law and administration, as well as define terms for the distribution and use of assets for beneficiaries.

3. Identify assets for SLAT funding

Assets transferred to the SLAT, and all future growth, are outside of the taxable estate, so the trust assets will not be subject to estate tax on the death of the trust settlor.

4. Fund the SLAT

Transfer assets to the SLAT and if applicable, open accounts in the name of the SLAT to hold trust assets.

5. File a gift tax return (IRS Form 709)

If a gift-tax return should be filed for the year the trust is funded, careful consideration and allocation of generation-skipping tax lifetime exemption is recommended.

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This material is provided for informational and educational purposes only. It does not consider any individual or personal financial, legal, or tax circumstances. As such, the information contained herein is not intended and should not be construed as individualized advice or recommendation of any kind. The use of trusts involves complex laws, tax rules, and regulations and individuals should consult with their legal and tax advisors or other qualified professionals regarding their personal circumstances and needs before making any legal, tax or financial related decisions. The information provided herein is not legal, tax or financial advice. Mariner does not provide legal advice.

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