Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Spousal Limited Access Trust SLAT Examples.

Posted on Mon Jan 14, 2019, on SLAT Spousal Limited Access Trust

From Our “Ask a Question” Mailbag: “Can you provide SLAT Examples?”

Examples of SLAT

SLAT Lawyer Kelly Barse.

Spousal Limited Access Trust SLAT Examples:

Planning for Retirement.

  • Mr. and Mrs. Philadelphia each have amassed $250K earmarked for their retirement.  They are concerned about asset protection planning and want to a plan to provide shelter for the assets.  First, Mr. Philadelphia forms a SLAT trust for Mrs. Philadelphia during her lifetime, and then for their children at her death. He makes a gift of approximately $250K of cash to the trust.  Later, Mrs. Philadelphia forms a similar SLAT trust for Mr. Philadephia and transfers her stock portfolio of roughly $250K into the trust. The trust is for Mr. Philadelphia, granting him broad powers of appointment at his death, but defaulting to their children if he does not exercise the power of appointment. 
    • If later, Mr. Philadelphia has creditor issues, these trusts provide protection. Mr. Philadephia no longer owns the assets he passed to Mrs. Philadelphia’s SLAT. Further, he does not own the assets Mrs. Philadelphia placed into the SLAT for his benefit.
    • At Mrs. Philadelphia’s death, the trust assets are divided between the children and continue in further trust.  These trusts are providing shelter from the children’s creditors and potential divorces.  But, to gain the advantages a SLAT trust provides, the funds cannot return to Mr. Philadelphia. 

Inheritance Tax Avoidance.

  • Mr. Doylestown estate plan includes giving $200,000.00 to his siblings, but only after his wife has died. If she needs the funds, he wants her to be able to spend the money. He is aware that the Pennsylvania Inheritance Tax to siblings is 12%, or $24,000.00 if he makes this gift through his Will. Mr. Doylestown has his Estate Planning Lawyer form a SLAT for his wife. He places $200,000 in the trust. Mrs. Doylestown is free to invest the funds as she wishes and use the funds if she needs them.  Mr. Doylestown dies two years later.  Mrs. Doylestown then dies a year later, having not taken any funds from the SLAT. The entire amount in the SLAT now passes to Mr. Doylestown’s siblings avoiding the Inheritance Tax. A $24,000.00 savings.
  • Mr. and Mrs. Wayne wish to have a portion of their estate pass to their children without paying the Pennsylvania Inheritance Tax.  They form SLAT trusts for one another and fund them with $500,000.00. As each spouse dies, the trusts continue for the children. But, because the Waynes funded the trusts more than one year before each of their deaths, they avoid the tax.  A $22,500.00 savings.
    • A further advantage, the SLAT trust funds come available to the children immediately following Mr. and Mrs. Wayne’s deaths. The funds do not pass through probate.  The funds do not appear on the estate inventory or the Pennsylvania Inheritance Tax Return. The Waynes should select a successor trustee, likely one of the children, who will promptly and efficiently divide up the trust and make distributions to the successor trusts for each child.

Follow this link to learn more about Examples of SLAT Trusts

In Conclusion: Spousal Limited Access Trust SLAT Examples.

I hope this article about Spousal Limited Access Trust SLAT Examples. We are always happy to brainstorm with you about your own, unique situation. 

Let our Estate Planning Lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our Estate Planning Attorneys.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

Tags:

Kelly Barse, SLAT, Spousal Limited Access Trust

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

CEGM

Peters' firm has prepared and updated our Wills and Trusts for the last 15 to 20 years. They know the law and help with your decision making to use the law to your best advantage. Response time to your requests is very reasonable, and final reviews and signing is executed in a timely manor with a thorough coverage of the documents. Our most recent updates to our Wills & Trusts were somewhat complicated, in our opinion, but Peter and his staff handled them effortlessly. As you can tell from this review Peter Klenk's firm is top notch.

Klenk Law Logo
Stars

Chris Mogee

Peter and his team are great to work with. They make estate planning so easy and painless. They answered all of my questions clearly and helped me understand the best way to handle complicated finances and things like real estate investments. Thank you Klenk Law!!

Klenk Law Logo
Stars

Var IAMPhilly

Overall I great experience with Daniella and the rest of her team to work with me for my fathers estate. Never was an issue that couldn’t be fixed. I highly recommend klenk Law firm.

Klenk Law Logo
Stars

Denise Lowmaster

Our experience with Klenk Law has been exceptional. We’ve had help with estate planning and pre-nuptial agreements. They really take the time to explain everything and let us know our options. All of the staff are very professional, courteous and knowledgeable. They are very prompt with responding to calls and messages. We will continue to use them and recommend to friends and family.

Klenk Law Logo
Stars

Tina Krovetz

Fantastically easy and efficient team to work with getting our wills done. We will use Klenk again in the years to come. I highly recommend Peter Klenk.

Let us put our expertise to work for you.

Free consultation within 24 hours.