EST2313. Creative Ways of Using SLATs and Other Ways of Using the Exemption

The estate tax exemption is scheduled to be cut by half in 2026. For married couples spousal lifetime access trusts (“SLATs”) are the go-to tool. But should they be? This session will explain the shortcomings of the typical SLAT plan and how advisers can enhance planning by improving access the clients can have to trust assets using a variety of different techniques that are often overlooked. Enhancing access to trust assets is essential for clients with net worths under $40-$50 million who want to use all their exemption. Creative ways to both enhance access and substantively differentiate the SLATs for purposes of the reciprocal trust doctrine. This session will also include practical and comprehensive discussion of what really may help trusts deflect a reciprocal trust challenge. Step transaction considerations and other tax traps in typical SLAT plans will be examined. What role insurance and financial analysis plays in supporting a SLAT plan.

Learning Objectives:

• Learn creative and often overlooked ways to enhance client access to assets transferred to SLATs
• Specific steps as to how to help clients avoid step transaction and reciprocal trust doctrine issues in a SLAT plan.