Question

What is the difference between a dynasty trust and a spousal lifetime access trust?

Answer

A dynasty trust is designed to shelter wealth from transfer taxes across multiple generations by allocating the generation-skipping transfer (GST) exemption at funding. A spousal lifetime access trust (SLAT) is designed for married couples to remove assets from the estate while preserving indirect access through the spouse. A SLAT can fund a dynasty trust, but the two structures serve different primary purposes: The dynasty trust prioritizes multigenerational tax efficiency, while the SLAT prioritizes spousal access.

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