Back Door SLATs – Issues When Grantor Becomes Beneficiary or Appointee of SLAT

Spousal Lifetime Access Trusts (“SLATs”) are ubiquitous in estate planning. As clients plan to use exemption before it is reduced by half in 2026 the issue of access to SLAT assets is key. Those with sufficient wealth may avoid any form of access. But for most clients some type of access is essential to assure that their financial position remains secure in future years. Thus, SLATs are a balancing act. Sufficient access should be provided (and that is not a simple determination) but each additional means of access creates some additional, though unmeasurable risk of estate inclusion and reach by creditors. This webinar will explore this key SLAT and estate planning challenge. How does the UTC §505(a)(2), common law rules, the Restatement, and various state statutory fixes to Intervivos QTIPs (and sometimes SLATs) impact this analysis? What about the impact on access versus estate inclusion/creditor risk of Hybrid-DAPTs, Power Trusts, SPATs, or a trust protectors’ ability to add grantor as beneficiary on this analysis? IRC §2036 is always a factual issue, be it DAPT or another vehicle. What should practitioners consider? What about divorce concerns and the use of a “floating spouse”? What other ways can SLAT benefits can be undermined? What about grantor trust tax reimbursement clauses? Can a trustee go back to inception?

Speakers: Edwin P. Morrow, III, Jonathan G. Blattmachr, and Martin M. Shenkman, Esq.

Sponsor: Interactive Legal (ILS) and Peak Trust Company

*This may constitute attorney advertising.

* No CPE, CLE, etc. is offered but a certificate of attendance will be provided.