While it can be an uncomfortable process, planning ahead and creating your estate plan now can save you and your family money down the road. It also can help mitigate added stress on your family while they grieve your loss.
This Tennessean article discusses a few ideas to consider while creating your plan, one of which is a Spousal Lifetime Access Trust (SLAT). These trusts are great for couples who have particularly large estates, especially since lifetime exemptions are set to decrease in 2025.
Currently, individuals who pass away with up to $12.92 million in assets ($25.84 for married couples), owe no estate taxes. For any assets over this amount, however,taxes are owed at a max rate of 40 percent. As of December 31, 2025, however, this increased exemption amount is set to expire, so it could be wise to take advantage of this rate by making gifts before it drops back down. One way to do this is through a SLAT.
A SLAT is an irrevocable trust where one spouse gifts assets to the other beneficiary spouse. They are a valuable tool as it allows taxpayers to gift assets while retaining limited access to the funds through their spouse.
To learn more about SLATs and how it could benefit you and your family, contact our team at Rhodes Law Firm today.