Spousal Lifetime Access Trust (SLAT)

A SLAT, or spousal lifetime access trust, is a type of trust set up by one spouse for the benefit of the other spouse. It’s typically used by married couples who want the tax and planning benefits of a trust, but want to be able to continue to access and use the funds in the trust. 

Typically, a SLAT is created for a spouse and then that spouse is entitled to whatever income or distributions are allowed by the trust terms. In many SLATs, the terms are broad to allow the spouse access to the trust’s assets, while the settlor may indirectly benefit from the trust assets.

Read more: What is a spousal lifetime access trust (SLAT), and how does it work?