Posted by What is the life benefit trust for spouse SLAT?
SLAT Trust, the full English name is: Spousal Lifetime Access Trust, which is translated into Chinese as a spouse life-time benefit trust.
SLAT is an irrevocable trust specially designed for couples.Its most basic functional principle is that one spouse puts assets in the form of "gift" under the name of an irrevocable trust established for the benefit of the other spouse.
When we combine SLAT and life insurance for wealth inheritance planning, we put the life insurance policy in this trust, which has two major advantages. One is the claim payment of the life insurance policy.Not included in the estate of either spouseAt the same time, the beneficiary spouse can also allocate the cash value account of the life insurance policy.
©️MERCURY FINANCIAL GROUP
After the death of the beneficiary spouse of the SLAT trust, the assets in the SLAT trust can also be distributed to beneficiaries such as children and grandchildren.
What can a spouse life benefit trust help us?
The purpose of setting up a spouse life benefit trust is to put the founder's assets under the name of the SLAT trust, not under the name of the spouse.
With a reasonable structure, not only canLet the spouse get life-long funding, And actually get the distribution of the property, but alsoHelping the spouse avoid creditor's recourse for property,At last,Trust assets will not be included in the spouse’s taxable estate.
As an important part of estate planning, spouse life benefit trustMainly used for asset protection,andThe cost is not high.
In addition to the above three advantages, spouse life benefit trusts also have certain disadvantages. The first disadvantage is that when one of the beneficiaries of the spouse passes away first, the other disadvantage is that it cannot solve the unexpected divorce. Other issues.
What kind of people is a spouse life benefit trust suitable for?
The life-long benefit trust for spouse cooperates with the following types of husband and wife relationshipsLarge life insurance policy, Will be a very ideal solution:
– The relationship between husband and wife is very close and divorce is impossible;
– Family assets are estimated to be between $600 million and $3000 million, facing potential inheritance tax issues;
– At least 40 years old;
– The physical condition of the trust creator is insurable;
– There is a consensus on the transfer of wealth between husband and wife;
