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SLAT: The Spousal Lifetime Access Trust

A spousal lifetime access trust, or SLAT, lets one spouse move assets out of the couple’s taxable estate while the other spouse can still tap the money. The grantor spouse gifts assets into an irrevocable trust for the benefit of the other spouse, using their estate-tax exemption. The assets and their growth leave the estate, but the household keeps indirect access through the beneficiary spouse.

Settled Estate cover: spousal lifetime access trust explained
By Settled Estate Editorial Team

The Short Answer

An ordinary way to cut estate tax is to give assets away, but most people hesitate because they might need the money later. A SLAT is the workaround for married couples: you make the gift to an irrevocable trust for your spouse, so the assets leave your taxable estate, yet your spouse’s access means the household is not fully cut off. It is a tool for higher-net-worth couples, not an everyday plan.

How It Works

  1. One spouse (the grantor) creates an irrevocable trust naming the other spouse as beneficiary.
  2. The grantor gifts assets into the trust, using part of their lifetime gift and estate-tax exemption.
  3. Those assets, and everything they earn from then on, are outside the grantor’s taxable estate.
  4. The beneficiary spouse can receive distributions, which indirectly benefits the couple while they are married.

Why Couples Use It

The main driver is the federal estate-tax exemption. That exemption is set by law and has been scheduled to change, so couples with estates large enough to face estate tax use a SLAT to put assets to work under the current exemption while it is available, rather than risk losing the chance. Moving appreciating assets out early also keeps future growth out of the estate. Because the numbers and the timing shape the whole decision, this is a plan to build with a financial advisor and an estate attorney, using current figures.

The Risks

  • Divorce. The trust still benefits your now-former spouse, so the grantor generally loses the indirect access.
  • Death of the beneficiary spouse. If your spouse dies first, the access that made the SLAT comfortable ends.
  • Reciprocal trust doctrine. If both spouses create near-identical SLATs for each other, the IRS can undo the tax benefit, so the two trusts must be meaningfully different.

None of these are reasons to avoid a SLAT, but they are reasons it is drafted carefully by professionals rather than assembled from a template.

Frequently Asked Questions

What is a SLAT?
A SLAT, or spousal lifetime access trust, is an irrevocable trust one spouse creates for the benefit of the other. The grantor spouse gifts assets into it using their gift and estate-tax exemption, which moves those assets and their future growth out of the couple’s taxable estate. Because the beneficiary spouse can receive distributions, the couple keeps indirect access to the money, which is what makes a SLAT more comfortable than an ordinary irrevocable gift.
Why would a couple set up a SLAT?
Couples use a SLAT to lock in a large estate-tax exemption before it changes and to move appreciating assets out of their estate while they can still benefit indirectly. Federal estate-tax exemption amounts are set by law and have been scheduled to shift, so a SLAT is one way to use the exemption while it is available. Whether it makes sense depends on your net worth and the current exemption, which is an advisor conversation.
What are the risks of a SLAT?
The biggest risks are divorce and death. If the couple divorces, the grantor spouse generally loses the indirect access, because the trust still benefits the former spouse. If the beneficiary spouse dies first, that access ends too. There is also the reciprocal trust doctrine: if both spouses set up nearly identical SLATs for each other, the IRS can unwind the tax benefit, so the two trusts must be meaningfully different. These are reasons a SLAT is drafted by an experienced attorney.
Can I access a SLAT myself?
Not directly. The trust is for your spouse, not for you, so you cannot be a beneficiary without defeating the estate-tax purpose. The access is indirect: while you are married, distributions to your spouse can benefit the household you share. That indirect access is a feature, but it disappears on divorce or your spouse’s death, which is why the plan has to account for both.

Information current as of July 16, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in your state can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.