A SLAT is an irrevocable trust created by one spouse (the grantor) for the primary benefit of the other spouse (the primary beneficiary) and often also for descendants of the spouses (remainder beneficiaries). A SLAT is an attractive asset protection tool because the grantor can remove assets committed to the trust (and any future earnings and appreciation) from his or her taxable estate, up to the individual lifetime estate and gift tax exemption. Properly documenting this contribution often requires the help of a valuation professional, particularly when the trust is funded with illiquid or nonmarketable assets that are not easily valued.

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