A gift to a SLAT can allow distributions to your wife during her lifetime, subject to health, education, maintenance and support (HEMS) under the…

A gift to a SLAT can allow distributions to your wife during her lifetime, subject to health, education, maintenance and support (HEMS) under the illustrated terms. Those distributions stop at her death, and so does your indirect benefit through her.

Keep enough outside the trust for your own needs and taxes. An optional clause may allow an independent trustee to reimburse your tax on trust income. The gift is not money you can simply take back.

Today's Daily Tax Planning Strategy covers the gift, distribution terms and the loss of access under a spousal lifetime access trust.

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