What Is a SLAT and Should It Be Part of Your Estate Plan?
High-net-worth families often face a classic estate planning dilemma: the desire to reduce estate taxes and transfer wealth efficiently, without giving up flexibility during their lifetimes.
A Spousal Lifetime Access Trust (SLAT) offers a potential solution. This irrevocable trust allows one spouse to make a sizable gift for estate planning purposes, while still maintaining indirect access to those funds through the other spouse. For couples seeking both tax efficiency and continued access to wealth, a SLAT can be a compelling option.
And with recent legislative developments, it may be time to revisit how this strategy fits into the broader estate planning landscape.
How a SLAT works
A SLAT is an irrevocable trust created by one spouse (the donor) for the benefit of the other spouse (the beneficiary), and oftentimes their children. The donor funds the trust—often with cash, investments or business interests—and uses their gift and generation-skipping transfer (GST) tax exemptions to move those assets out of their taxable estate.
While the donor gives up direct access to the funds, the beneficiary spouse can receive distributions. That structure creates a “financial backstop” for the couple, especially if the donor is the primary earner.
When the beneficiary spouse passes away, the remaining trust assets typically transfer to children, grandchildren or trusts for their benefit, often with creditor protection, divorce protection and continued estate tax advantages.
A changing estate tax landscape
For years, SLATs have been used to “lock in” the temporarily high federal estate tax exemption. But that landscape is shifting.
The One Big Beautiful Bill Act was signed into law on July 4, 2025, which increased the federal estate and gift tax exemption to $15 million per individual ($30 million per couple) starting in 2026, and made that exemption permanent.1
While this may reduce the urgency of certain estate tax planning moves, it doesn’t diminish the strategic value of SLATs in a comprehensive wealth plan. In fact, with larger exemptions now in place, families may want to recalibrate their gifting strategy, not abandon it.
Why SLATs still matter
SLATs remain attractive for many reasons beyond just the estate tax exemption. When thoughtfully structured, they can provide long-term value in multiple ways:
- You reduce future estate taxes. Assets—and any future appreciation—are moved out of your estate, potentially saving millions in tax, depending on the size of the estate.
- You maintain financial flexibility. Distributions to your spouse can support your lifestyle, even though the assets are no longer in your name.
- You gain asset protection. Properly structured SLATs can shield trust assets from creditors, lawsuits and divorcees.
- You can build multigenerational wealth. Trust provisions can pass assets efficiently to children and grandchildren outside the estate tax system with legacy control.
What to watch out for
As with any advanced trust strategy, SLATs come with some trade-offs:
- You give up control. Once assets are transferred into a SLAT, they are irrevocably out of your name and no longer accessible, except indirectly through your spouse.
- You risk future capital gains. Because the assets are removed from your estate, they won’t receive a step-up in basis at death. That could mean higher capital gains tax for heirs.
- You must plan for the unexpected. If the marriage ends in divorce or the beneficiary spouse passes away early, the donor spouse may lose access to the funds.
- You must avoid reciprocal trust issues. If both spouses create SLATs for each other that are too similar, the IRS may treat them as if each person is still benefiting from their own trust. That can wipe out the intended tax advantages.
When a SLAT makes sense
A SLAT may be right for you if:
- You’re looking to reduce estate tax exposure with the potential to indirectly benefit from the assets.
- You have confidence in the strength of your marriage and long-term stability.
- You want to protect assets from creditors or potential litigation.
- You’re focused on legacy planning and tax-efficient wealth transfer.
- You’ve already used other gifting strategies and are looking for the next layer of planning.
Final thoughts
A Spousal Lifetime Access Trust is not a casual tool—it involves legal complexity, careful timing and coordination with your broader wealth plan. But for the right couple, it can serve as a bridge between long-term tax planning and present-day financial confidence.
If you're considering a SLAT or want to re-evaluate your estate planning approach, connect with your Corient Wealth Advisor. We’ll help you weigh the pros and cons, model potential outcomes and determine whether this strategy belongs in your plan for today and for generations to come.
1 https://www.forbes.com/sites/christinefletcher/2025/08/04/what-the-one-big-beautiful-bill-means-for-your-estate-plan/
ABOUT THE AUTHOR
John Schuman
John is a Partner, Head of Wealth Transfer at Corient, based in our Columbus, OH, office. Previously, he was a Partner, Co-CEO and President of legacy firm Budros, Ruhlin & Roe. As a CERTIFIED FINANCIAL PLANNER™ certificant, licensed attorney and former Certified Public Accountant (CPA), he adds an exceptional perspective to the firm. John’s expertise includes estate planning and taxation, income tax, general business and succession planning, and charitable and retirement planning. He has been a featured speaker at conferences of the Columbus Bar Association, the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), the Ohio CLE Institute, The Columbus Foundation and the International Association of Advisors in Philanthropy.
John holds a Bachelor of Science from The Ohio State University and a Juris Doctorate from Capital University Law School (summa cum laude). John is a member of the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), and the Columbus, State of Ohio and American Bar Associations. He also serves as a member of the Professional Council of The Columbus Foundation.
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