At Heritage Law Office, our estate planning attorney in Wisconsin offers various estate planning options, including the creation of an irrevocable trust. We will thoroughly review your needs and provide an outline of your best options. Contact us either online or at 414-253-8500 to schedule a free consultation today.

Understanding Slat Estate Planning in Wisconsin

If you're looking for a way to minimize estate taxes, then you may be interested in the use of a Spousal Lifetime Access Trust (SLAT). A SLAT is an irrevocable trust that can be established by one spouse for the benefit of the other. The trust is funded by assets that are transferred by the spouse who created the trust.

The main advantage of a SLAT is that it allows the spouse who created the trust to remove assets from their taxable estate. By doing so, they can reduce their potential estate tax liability. In addition, the spouse who benefits from the trust can access the trust's income and principal during their lifetime.

However, a SLAT has some disadvantages as well. For instance, the spouse who created the trust cannot be a beneficiary of the trust. Also, the trust is irrevocable, which means that the spouse who created the trust cannot change or revoke it once it has been established.

How to Establish a SLAT Estate Planning in Wisconsin

If you're interested in establishing a SLAT, then it's important to work with an experienced estate planning attorney. Your attorney can help you navigate the complex tax and legal issues involved in creating a SLAT. Here are the steps involved in creating a SLAT:

Step 1: Choose a Trustee

The first step in creating a SLAT is to choose a trustee. The trustee is responsible for managing the trust's assets and making distributions to the beneficiary. You can choose a family member, friend, or professional trustee to serve as the trustee.

Step 2: Fund the Trust

The next step is to fund the trust by transferring assets to the trust. The assets can be cash, stocks, bonds, real estate, or any other type of property. Once the assets are transferred to the trust, they are no longer part of your taxable estate.

Step 3: Name a Beneficiary

The beneficiary of the trust is the spouse who will benefit from the trust. The beneficiary can access the trust's income and principal during their lifetime. It's important to choose a beneficiary who you trust to manage the assets in the trust.

Step 4: Draft the Trust Agreement

The final step is to draft the trust agreement. The trust agreement outlines the terms and conditions of the trust, including how the assets will be managed and distributed. Your estate planning attorney can help you draft the trust agreement and ensure that it complies with Wisconsin law.

Benefits of Slat Estate Planning in Wisconsin

Here are some of the benefits of using a SLAT for estate planning in Wisconsin:

Estate Tax Savings

A SLAT allows you to remove assets from your taxable estate, which can reduce your potential estate tax liability. By doing so, you can pass on more of your wealth to your heirs.

Creditor Protection

Assets in a SLAT are protected from creditors. This means that if you're sued or go through a bankruptcy, the assets in the trust are protected.

Income and Principal Access

The spouse who benefits from the trust can access the trust's income and principal during their lifetime. This can provide financial security and flexibility.

Contact a SLAT Estate Planning Lawyer in Milwaukee, Wisconsin

At Heritage Law Office, our estate planning attorney in Wisconsin can help you establish a SLAT to minimize your potential estate tax liability. Contact us either online or at 414-253-8500 to schedule a free consultation today.