St. Petersburg Spousal Lifetime Access Trust Lawyer
A spousal lifetime access trust (SLAT) is an advanced estate planning tool designed to provide financial benefits to your spouse while minimizing your taxable estate. This irrevocable trust allows married couples to take advantage of current estate and gift tax exemptions while offering flexibility and control over how assets are managed and distributed. At Drude Tomori Law, we assist clients with creating and implementing SLATs to achieve their estate planning goals. Contact our St. Petersburg spousal lifetime access trust lawyer for thoughtful advice and professional estate planning assistance.
What Is a Spousal Lifetime Access Trust?
A SLAT is an irrevocable trust set up by one spouse (the settlor) for the benefit of the other spouse (the beneficiary). Once the trust is funded, the assets are no longer part of the settlor’s estate, helping reduce potential estate taxes. While the beneficiary spouse has access to the trust’s income or principal during their lifetime, the assets can also be preserved for future generations.
The key benefits of a SLAT include:
- Estate Tax Reduction: Assets placed in a SLAT are removed from the settlor’s estate, helping to minimize estate tax exposure.
- Income Tax Benefits: In some cases, the trust’s income tax obligations may be shifted to beneficiaries in lower tax brackets.
- Asset Protection: Assets in a SLAT are protected from creditors and lawsuits, ensuring they remain available for your spouse and heirs.
A SLAT can be particularly useful for high-net-worth individuals seeking to maximize the current federal gift and estate tax exemption, which is set to decrease in the future unless Congress takes action.
How a Spousal Lifetime Access Trust Works
When creating a SLAT, the grantor transfers assets into the trust, relinquishing ownership and control of those assets. The beneficiary spouse can receive distributions from the trust as outlined in its terms. After the beneficiary spouse’s death, the remaining trust assets are typically passed to other designated beneficiaries, such as children or grandchildren.
When setting up a SLAT, it is important to consider the irrevocable nature of this trust. Once a SLAT is created and funded, it cannot be revoked or modified. Also, the trust is established for the sole benefit of the beneficiary spouse during their lifetime, giving only that spouse access to the trust funds. Also, it is important to note that the grantor uses a portion of their federal estate and gift tax exemption when funding the trust. These factors should be considered when deciding whether a SLAT is the proper tool in your situation. At Drude Tomori Law, we’ll help you work through these issues and tailor the SLAT to meet your family’s unique needs.
Why Consider a SLAT for Your Estate Plan?
A SLAT offers several advantages for individuals looking to protect their assets and provide for their loved ones:
- Flexibility: While irrevocable, the trust’s terms can be customized to meet your family’s specific goals.
- Inter-Spousal Benefits: The beneficiary spouse can benefit from the trust assets during their lifetime.
- Legacy Building: A SLAT can help preserve wealth for future generations while minimizing tax burdens.
However, creating a SLAT requires careful planning to avoid potential pitfalls, such as issues related to divorce or the death of the beneficiary spouse. Our attorneys will guide you through these challenges to ensure your SLAT works effectively within your broader estate plan.
How Drude Tomori Law Can Help With SLATs in St. Petersburg
At Drude Tomori Law, we are experienced in creating customized SLATs and other irrevocable trusts for clients in St. Petersburg. Our team will explain the benefits and limitations of a SLAT in the context of your overall estate plan, help you select the right assets to fund the trust, and ensure the trust is properly drafted to comply with state and federal laws. We understand that every family’s circumstances are unique, and we are dedicated to providing personalized solutions that achieve your goals.
Contact a St. Petersburg Spousal Lifetime Access Trust Lawyer
A spousal lifetime access trust can be a powerful tool for protecting your assets and securing your family’s financial future. At Drude Tomori Law, we’ll help you determine whether a SLAT is right for you and guide you through every step of the process.
Call us at 727-300-8900 or contact us online to schedule a consultation. Let us help you build a legacy that lasts for generations.
