NY Asset Protection Lawyer Seth Schlessel Releases Article on Spousal Lifetime Access Trusts

NY asset protection lawyer Seth Schlessel (https://www.schlessellaw.com/what-is-a-spousal-lifetime-access-trust/) of Schlessel Law PLLC has published a comprehensive article titled "What is a Spousal Lifetime Access Trust?" In this detailed piece, Schlessel discusses the nuances of Spousal Lifetime Access Trusts (SLATs) and their significant role in estate planning.

NY asset protection lawyer Seth Schlessel explains that a Spousal Lifetime Access Trust is a powerful tool designed to provide financial security for a spouse while preserving wealth for future generations. He states, "A SLAT allows one spouse to transfer assets into an irrevocable trust, benefiting the other spouse during their lifetime. This not only leverages gift tax exemptions but also helps reduce the size of the taxable estate, ultimately minimizing estate taxes." Schlessel's article highlights the vital aspects of SLATs, making it clear that these trusts are instrumental in protecting family wealth from creditors and ensuring long-term financial stability.

In the article, NY asset protection lawyer Seth Schlessel emphasizes the importance of understanding the complexities associated with SLATs. "The assets in a SLAT are protected from creditors," Schlessel notes. "This ensures that your family's wealth remains intact and secure, providing peace of mind for both the grantor and the beneficiary." By offering a blend of asset protection and tax benefits, SLATs stand out as a strategic option under New York trust laws.

NY asset protection lawyer Seth Schlessel's article also provides a detailed overview of how SLATs function. A SLAT is an irrevocable trust where one spouse, the grantor, transfers assets to benefit the other spouse, the beneficiary. This structure allows couples to take full advantage of the federal lifetime gift exemption, which in 2024 is set at $13.61 million. "By transferring assets into the trust, the grantor relinquishes control, but the non-grantor spouse can still access these assets, ensuring financial security for the family," Schlessel explains.

Schlessel's article discusses the primary benefits of SLATs, including reducing the taxable estate of the grantor and providing asset protection. "A key advantage of a SLAT is its ability to reduce the taxable estate, which is particularly beneficial for individuals with federally taxable estates," Schlessel states. By making substantial lifetime gifts to the trust, the grantor can shield these assets from future estate taxes while still providing indirect access through the non-grantor spouse.

The article also explores the inclusion of descendants as beneficiaries, which supports multi-generational wealth transfer and estate planning. Schlessel points out that SLATs can be structured to include children and grandchildren as beneficiaries either concurrently with the non-grantor spouse or as successor beneficiaries. This flexibility ensures that the trust meets the diverse needs of the family over time.

In discussing the distinct characteristics of SLATs compared to other trusts, Schlessel highlights their irrevocability, specific beneficiary structure, and utilization of the federal gift tax exemption. "Unlike revocable trusts, a SLAT is irrevocable, meaning the grantor cannot alter or terminate the trust once it is established," Schlessel explains. This provides strong asset protection and tax benefits but requires careful planning and commitment.

Schlessel also addresses potential drawbacks and risks associated with SLATs, such as the lack of control over trust assets and the impact of divorce. He advises that while establishing a SLAT requires the grantor to relinquish control over the assets, provisions can be included in the trust documents to mitigate risks, such as loss of access if the non-grantor spouse passes away or in the event of a divorce.

A Spousal Lifetime Access Trust offers a strategic way to protect assets and provide for a spouse while reducing the estate's tax burden. This estate planning tool can be a valuable addition to a financial strategy, ensuring wealth preservation for future generations. By understanding the benefits and intricacies of SLATs, individuals can make informed decisions that align with their long-term goals and financial security.

For those seeking to create a Spousal Lifetime Access Trust or explore other asset protection strategies, Schlessel Law PLLC can provide experienced guidance and personalized estate planning services.

About Schlessel Law PLLC:

Schlessel Law PLLC, based in New York, can offer a wide range of legal services focusing on asset protection and estate planning. Led by Seth Schlessel, the firm is committed to providing personalized and strategic legal solutions to help clients safeguard their wealth and ensure their financial legacy. The team at Schlessel Law PLLC is dedicated to delivering exceptional service and support to meet the unique needs of each client.

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Email: seth@schlessellaw.com

Website: http://www.schlessellaw.com/

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