SLAT, short for spousal lifetime access trust, is an irrevocable trust created by one spouse for the benefit of the other spouse and often other family members. The grantor spouse makes completed gifts to the SLAT, removing assets and future appreciation from their taxable estate, while the beneficiary spouse can receive distributions during life. This structure allows a couple to use lifetime gift and estate tax exemptions while still having indirect access to trust assets through the beneficiary spouse. SLATs often hold investment portfolios and life insurance, particularly policies designed to provide estate liquidity or legacy benefits for heirs. Because the trust is irrevocable, careful drafting and coordination with overall family planning is essential.

Advisors and estate planners recommend SLATs for high-net-worth couples concerned about estate taxes and future changes to exemption levels. They coordinate gifts to the SLAT with life insurance purchases, using trust-owned policies to create tax-efficient death benefits outside both spouses' estates. Planning considerations include avoiding reciprocal SLATs, managing divorce risk, and defining distribution standards for the beneficiary spouse. Advisors explain that while a SLAT can provide indirect access to assets, it should not be funded with money the couple expects to need for core living expenses. Understanding SLAT strategies helps advisors integrate trust-owned life insurance and investment planning into a flexible yet estate-efficient structure for multigenerational wealth.