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

Christopher F.

Peter explained things in a way that was easy to understand. Everything was done in the time frame he said it. Could not have been better!

Klenk Law Logo
Stars

Rocco D.

I have worked with Peter Klenk & his associates for some time now and I have found them to be ultra-qualified, knowledgeable and diligent about their work. I highly recommend them.

Klenk Law Logo
Stars

Ellen G.

I have had Peter Klenk prepare and revise my will. Always professional, knowledgeable and offers great advice. Highly recommend

Klenk Law Logo
Stars

B.A.

Peter Klenk and his associates are responsive and professional - It is a pleasure to work with their team. If you have needs in estate planning or administration, they are the firm to go to in the Philadelphia area!

Klenk Law Logo
Stars

CHARLES TOLL

Excellent, knowledgeable team handled a complicated issue with superb results.

Let us put our expertise to work for you.

Free consultation within 24 hours.