Estate Planning · Haute Lawyer Network

What Is a SLAT (Spousal Lifetime Access Trust)?

Last reviewed: October 2026 · Jurisdiction: United States (federal estate, gift and income tax; state law varies)

A spousal lifetime access trust (SLAT) is an irrevocable trust that one spouse funds by gift for the benefit of the other spouse, and often their descendants. The gift uses the donor's federal gift and estate tax exemption, which is $15,000,000 per person in 2026. The assets and their future growth are removed from both spouses' taxable estates. The family keeps indirect access because the beneficiary spouse can receive distributions.

How a SLAT works

Donor spouse: makes a completed gift to the trust and files a gift tax return (Form 709) allocating exemption.
Beneficiary spouse: may receive income or principal, usually under an ascertainable standard (health, education, maintenance and support) when the spouse also serves as trustee.
Remainder beneficiaries: typically children, or later generations if GST exemption is allocated.
Trustee: often the beneficiary spouse, an independent trustee or a corporate trustee. The choice affects both tax results and creditor protection.

Why families consider a SLAT in 2026

P.L. 119-21, signed July 4, 2025, set the basic exclusion at $15,000,000 for 2026, indexed for inflation after that. The law removed the scheduled 2026 drop. That changes the planning conversation: there is less urgency, and the focus is on removing *growth* from the estate. A SLAT lets a married couple use exemption now on appreciating assets while keeping a line of access through the spouse.

Grantor-trust status: the income tax side

Most SLATs are grantor trusts for income tax purposes. Under IRC §677, trust income that can be distributed to the grantor's spouse is taxed to the grantor. The donor pays the trust's income tax, which lets the trust grow undiminished and further reduces the donor's estate. See What is a grantor trust?

Key risks

Divorce. The beneficiary spouse usually keeps their interest after a divorce, and the donor loses indirect access. Some trusts define "spouse" as whoever the donor is married to at the time ("floating spouse"). Ask counsel how your state treats this.
Death of the beneficiary spouse. Indirect access ends. Some couples add insurance or other planning to cover this.
Reciprocal trusts. If both spouses create substantially identical trusts for each other, the IRS can "uncross" them under the reciprocal trust doctrine, *United States v. Estate of Grace*, 395 U.S. 316 (1969), and bring the assets back into the estates. Mirror-image SLATs need real differences, and planners draft them deliberately.
Gift-splitting. It is generally unavailable for a SLAT, because the beneficiary spouse cannot also be treated as the donor of a gift in which they hold an interest. Each SLAT is normally funded from the donor's own separate property.
Community property. In community-property states, assets may first need to be partitioned into separate property.
Irrevocability. Decanting, trust protectors and powers of appointment can add flexibility, but the gift is permanent. See What is a trust protector?

SLAT vs. QTIP trust vs. outright gift

	SLAT	QTIP trust	Outright gift to spouse
Uses donor's exemption?	Yes	No (marital deduction)	No (unlimited marital deduction, if the spouse is a U.S. citizen)
Removes growth from both estates?	Yes	No (included in the surviving spouse's estate)	No
Spouse access	Through the trustee	Income for life	Full

Spouses who are not U.S. citizens: the annual exclusion for gifts to them is $194,000 in 2026, and other rules apply. See What is a QTIP trust?

Questions to ask an estate planning attorney

Which assets should fund the SLAT? Appreciating assets, closely held interests and life insurance are common choices.
Who should be trustee, and what distribution standard should apply?
How does our state treat SLATs in divorce, and for creditor protection?
If we both want SLATs, how will they be differentiated?
Should GST exemption be allocated?

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This page is general information, not legal or tax advice. Laws change and vary by state; consult a licensed attorney about your situation.

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