SLAT Calculator 2026 β Spousal Lifetime Access Trust
Calculate SLAT estate planning savings for 2026. Model gift exemption usage, future estate tax savings, spousal access value, and sunset planning. Reciprocal trust doctrine warnings included.
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Quick:
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2026 exemption: $13.99M per person ($27.98M per couple)
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Federal: 40% above exemption
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$19,000 annual exclusion per beneficiary (2026)
$0
Lifetime Exemption Used
$0
SLAT Value at End of Term
$0
Estate Tax Saved (Appreciation)
$0
Crummey Additions (Future Value)
SLAT Calculation Details
How a SLAT Works
A Spousal Lifetime Access Trust (SLAT) allows a married couple to leverage the enhanced gift/estate tax exemption while maintaining indirect access to the trust assets through the beneficiary spouse.
Estate Tax Savings Formula
Future Trust Value = Gift Γ (1 + return%)^years + Crummey FV
Appreciation Removed = Future Trust Value β Gift Amount
Estate Tax Saved = Appreciation Γ 40% estate tax rate
Gift Tax Used = Gift Amount (uses lifetime exemption)
Net Estate Tax Benefit = Tax on appreciation removed β Gift tax cost (if any)
Appreciation Removed = Future Trust Value β Gift Amount
Estate Tax Saved = Appreciation Γ 40% estate tax rate
Gift Tax Used = Gift Amount (uses lifetime exemption)
Net Estate Tax Benefit = Tax on appreciation removed β Gift tax cost (if any)
Example: $5M SLAT gift, 7% return, 20-year horizon
Future value: $5M Γ 1.07^20 = $19.35M
Appreciation removed from estate: $14.35M
Estate tax saved at 40%: $5.74M
Future value: $5M Γ 1.07^20 = $19.35M
Appreciation removed from estate: $14.35M
Estate tax saved at 40%: $5.74M
Extended
Reciprocal Trust Design + 2026 Sunset Planning
Non-reciprocal SLAT design checklist, sunset urgency analysis, and dual-SLAT comparison
Non-Reciprocal SLAT Design Checklist
To avoid the reciprocal trust doctrine, each spouse's SLAT must differ in these key ways:
| Element | Spouse A's SLAT | Spouse B's SLAT | Risk if Mirror Image |
|---|---|---|---|
| Trustee | Independent trustee A | Independent trustee B | Reciprocal trust doctrine |
| Beneficiaries | Spouse B + children | Spouse A + different beneficiaries | Inclusion in estate |
| Distribution standard | HEMS standard | Health only or different standard | Identical trust uncrossing |
| Funding timing | Year 1 | Year 2 or later | Simultaneous creation risk |
| Asset type | Stocks/bonds | Real estate/business interest | Similar asset structure risk |
| Trust term | 20 years | 15 years (different) | Identical terms risk |
2026 Sunset Planning: Use-It-or-Lose-It Analysis
| Scenario | Action | Exemption Used | Est. Tax at Death | Est. Savings |
|---|
Sunset urgency: If the 2017 TCJA enhanced exemption sunsets after 2026, the per-person exemption reverts to ~$7M. Gifts made at $13.99M in 2026 will NOT be clawed back. SLAT funding before December 31, 2026 locks in the higher exemption permanently.
Frequently Asked Questions
What is a Spousal Lifetime Access Trust (SLAT)?
A SLAT is an irrevocable trust where one spouse (the donor) makes a gift to a trust for the other spouse's benefit. The donor uses their gift/estate tax exemption ($13.99M in 2026) to make the gift, removing those assets β and all future appreciation β from their taxable estate. The beneficiary spouse can access the trust funds, providing indirect access for the donor.
What is the "reciprocal trust doctrine" and why does it matter for SLATs?
The reciprocal trust doctrine applies when spouses create identical or near-identical SLATs for each other. The IRS may "uncross" the trusts, treating each spouse as if they had retained the other's trust assets β which would pull both trusts back into their respective estates. To avoid this, each SLAT must have meaningfully different terms (different trustees, different beneficiaries beyond the spouse, different distribution standards, different funding timing).
What happens to the surviving spouse if the beneficiary spouse dies?
This is the key SLAT risk. If the beneficiary spouse (the one who can access the trust) dies first, the donor spouse loses indirect access to those funds entirely. The trust assets continue in trust for other beneficiaries (typically children/grandchildren), but the donor spouse can no longer benefit from the SLAT assets, potentially affecting their retirement security.
How do Crummey powers work in a SLAT?
Crummey powers allow annual exclusion gifts ($19,000 per beneficiary in 2026) to be added to the SLAT gift-tax-free, beyond the lifetime exemption. Each beneficiary must receive written notice of their withdrawal right, even though they typically do not exercise it. This allows continued annual funding of the SLAT without using more lifetime exemption.
Should I fund a SLAT before the 2026 sunset?
The enhanced gift/estate tax exemption ($13.99M in 2026) is scheduled to revert to approximately $7M in 2026 without Congressional action. Gifts made using the higher exemption are "grandfathered" and will not be clawed back if the exemption is reduced. This creates a use-it-or-lose-it planning window. A SLAT can be an effective vehicle to use the enhanced exemption before any sunset.