Estate planning
The Spousal Lifetime Access Trust
How a couple can lock in today's federal exemption while keeping indirect access to the gifted assets.
A Spousal Lifetime Access Trust (SLAT) is a way for a married couple to use the federal gift and estate tax exemption now — moving assets and their future growth out of the taxable estate — while keeping indirect access to those assets through the other spouse.
How it works
One spouse creates an irrevocable trust for the benefit of the other, funding it with part of their federal exemption. The beneficiary spouse can receive distributions during their lifetime, so the couple retains a measure of access, and the assets — including any appreciation — pass to the children and grandchildren outside the taxable estate. Often each spouse creates a trust for the other so both exemptions are used.
When both spouses create SLATs, the trusts must differ in meaningful ways — different terms, funding, or timing — or the IRS may “uncross” them under the reciprocal trust doctrine and pull the assets back into each estate. The federal exemption is $15 million per individual ($30 million per couple) for 2026 and was made permanent by OBBBA, so the pressure to act before a sunset has eased — but a SLAT is irrevocable and technical, and should be designed with a qualified estate attorney.
Each spouse creates a trust for the other, so the couple keeps indirect access to the gifted assets. To avoid the “reciprocal trust doctrine,” the two trusts must differ in meaningful ways — a reason this is built with an estate attorney.
Sources
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This briefing is general educational information from The Hidden Tax. It is not legal, tax, or investment advice, not a recommendation, and not a substitute for professional counsel. Estate, trust, and tax planning depend on facts specific to you and on laws that change over time. Consult a qualified estate attorney and tax advisor before acting on anything described here.