Why add life insurance to a SLAT (Spousal Lifetime Access Trust)?
Not only can a SLAT help minimize estate taxes - whether that’s a current concern or an anticipated one - it also gives a beneficiary nongrantor spouse the flexibility to receive discretionary lifetime income from the trust.
With life insurance, the trust can provide your client’s beneficiaries with the best of both worlds: access to trust assets, plus a greater legacy enhanced by life insurance cash values and ultimately a death benefit received free of federal estate and income taxes.
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