Use the exemption now
Under current federal law, the lifetime gift and GST exemption is approximately $15M per individual in 2026 (subject to change by future legislation).
SLATsLegacy Counsel
Spousal Lifetime Access Trusts (SLATs)
A SLAT is how married couples use today's elevated lifetime exemption without feeling like they are giving up access.
Key Points
- ◆Uses lifetime gift and GST exemption while preserving indirect spousal access
- ◆Future appreciation accrues outside the estate
- ◆Reciprocal trust doctrine: spouses cannot create mirror-image SLATs for each other
- ◆Spousal death or divorce ends indirect access — risk to plan around
- ◆Often sited in a long-duration jurisdiction (DE, NV, SD) for dynasty effect
The reciprocal trust trap
If both spouses create SLATs for each other with substantially similar terms, the IRS applies the reciprocal trust doctrine and treats each spouse as having created a trust for themselves — collapsing the strategy and pulling both trusts back into each estate.
Frequently Asked
What happens to my SLAT if I get divorced?+
The beneficiary spouse is still a beneficiary unless the trust defines 'spouse' as the current spouse from time to time — which we typically include.
What if my spouse dies first?+
Indirect access ends, but the assets remain in trust for the descendants outside the estate.
Related
Next Step
Talk to Legacy Counsel.
Fixed-fee estate planning for clients in New York, New Jersey, and Ohio.
Drew Jacobs is licensed in New York, New Jersey, and Ohio. Nothing on this page constitutes legal advice or an offer to represent you in a jurisdiction in which we are not licensed.
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