Blog — Page 84

Spousal Lifetime Access Trust (SLAT): Lock In the 2026 Exemption Before It Sunsets

Spousal Lifetime Access Trust (SLAT): Lock In the 2026 Exemption Before It Sunsets

A SLAT lets one spouse gift assets into an irrevocable trust for the other spouse, using the historically high lifetime gift and estate tax exemption before it drops — while keeping indirect access to the money. This 2026 guide explains how a SLAT works, the exemption sunset, the reciprocal trust doctrine, divorce and death risk, grantor-trust income tax, and how it compares to an ILIT, GRAT, and bypass trust.

SLAT spousal lifetime access trust gift tax exemption
Intentionally Defective Grantor Trust (IDGT): Pay the Income Tax, Freeze the Estate Tax in 2026

Intentionally Defective Grantor Trust (IDGT): Pay the Income Tax, Freeze the Estate Tax in 2026

An IDGT is 'defective' for income tax on purpose — the grantor pays the trust's income tax so assets grow untouched for heirs — yet fully effective for estate tax, moving those assets out of the taxable estate. This 2026 guide explains the income-tax vs estate-tax split, the installment sale to an IDGT (estate freeze), why paying the tax is an extra tax-free gift, how it compares to a GRAT and SLAT, the risks, and when it fits.

IDGT intentionally defective grantor trust estate tax