What is a slat trust?

A slat trust, or spousal lifetime access trust, is a type of irrevocable trust that allows one spouse to establish a trust for the benefit of the other spouse and possibly other beneficiaries, such as children or grandchildren. The grantor spouse transfers assets into the trust and the trustee manages the assets for the benefit of the beneficiaries.

One key feature of a slat trust is that the grantor spouse can retain certain rights and access to the trust assets, such as the ability to receive income or principal distributions from the trust during their lifetime. This can provide the grantor spouse with some level of control and access to the trust assets while still allowing those assets to be protected from creditors, estate taxes, and other risks.

Slat trusts are often used as part of estate planning strategies to pass wealth to future generations while also providing for the needs of the surviving spouse. They can also help to minimize estate taxes and provide asset protection for the trust beneficiaries. It is important to work with a knowledgeable estate planning attorney or financial advisor when setting up a slat trust to ensure that it aligns with your goals and objectives.