BoomX Nation

06/06/2024

{
"title": "Spousal Lifetime Access Trusts: Protecting Assets and Reducing Estate Taxes",
"excerpt": "Discover the benefits and risks of Spousal Lifetime Access Trusts (SLATs) and how they can help couples protect their assets and reduce estate taxes while providing for their spouse's lifetime needs.",
"content": "Spousal Lifetime Access Trusts: Protecting Assets and Reducing Estate Taxes

Spousal Lifetime Access Trusts (SLATs) are a powerful estate planning tool that allows couples to protect their assets, reduce estate taxes, and provide for their spouse's lifetime needs. By creating an irrevocable trust that benefits the other spouse, couples can keep trust assets out of their estate while retaining some control over the assets.

Key Points

SLATs allow one spouse to create an irrevocable trust that benefits the other spouse while keeping the trust assets out of their estate.
The main benefits of a SLAT include reducing estate taxes, protecting assets, and providing for the spouse's lifetime needs.
Risks associated with a SLAT include the loss of control over the assets, potential tax implications, and the need for careful planning and drafting.
A SLAT can be funded with various assets, including cash, securities, and real estate.


Benefits of Spousal Lifetime Access Trusts
One of the primary advantages of a SLAT is its ability to reduce estate taxes. By transferring assets into the trust, the spouse creating the trust effectively removes those assets from their taxable estate. This can result in significant tax savings, especially for high-net-worth couples whose estates may be subject to substantial estate taxes.

In addition to reducing estate taxes, SLATs also offer asset protection benefits. Once assets are transferred into the trust, they are generally shielded from creditors and potential lawsuits. This can provide peace of mind for couples concerned about protecting their wealth from external threats.

Risks and Considerations
While SLATs offer numerous benefits, there are also some risks and considerations to keep in mind. One of the main risks is the loss of control over the assets once they are transferred into the trust. Since the trust is irrevocable, the spouse creating the trust relinquishes direct control over the assets. This can lead to conflicts if the spouses have differing opinions on how the trust assets should be managed or distributed.

Another consideration is the complexity of trust administration. SLATs require careful planning and drafting to ensure that they operate as intended and comply with legal standards. This can be time-consuming and may require the assistance of experienced professionals, such as attorneys and financial advisors.

Funding and Retained Powers
A SLAT can be funded with a variety of assets, including cash, securities, and real estate. The retained power section of a SLAT is crucial for ensuring the trust's compliance with legal standards. This section allows the spouse creating the trust to retain some control over the trust assets, such as the ability to make changes to the trust terms or add or remove beneficiaries.

About the Author
Author: Darol Tuttle
Darol Tuttle is a seasoned asset protection attorney. Since 1996, his practice has emphasized estate planning, asset protection, and long-term care planning. He is also the host of the BoomX Show podcast, founder of BoomX Academy, and CEO and Founder of LegalEdge Innovators, Inc. The academy is based on the principle of fair access to justice. Its mission is to help families grow and protect their wealth by eliminating the barriers of exorbitant fees, long workflows, or inferior basic legal forms that have limited value.

Validated Points
Key Point from Source 1: This article provides additional information on the benefits and risks of a SLAT, including the importance of careful planning and drafting.
Key Point from Source 2: This article discusses the funding options for a SLAT, including the use of cash, securities, and real estate.",
"slug": "slat-benefits-risks-6-5-2024"
}

04/06/2024

Did you know that there are two kinds of property? ✌️Real and personal. Within these, items in one of two sub-categories do not exist in the physical universe. What are these categories called?
HINT: If some of your property isn't physically present, it could be digital or a legal right. Patents don't exist physically. Yet, they can be very valuable. Option contracts are again, wait for it, "intangible". Is your retirement account touchable ... I mean "tangible", like your home?

03/06/2024

Ever heard the expression, "you can't take it with you?" It's true! If assets are titled in your name, and you die with no estate plan, the court has temporary ownership of the assets until they can be transitioned to the right people. Who are the "right people" in this example. The right people are the people a state statute says are right, i.e., an intestate statute.

17/01/2024

As part of my job, I read account and income statements of my clients. I have done this for almost 30 years and, when it comes to wealth in America? Man! it's often not who you'd expect! 🤔 Big houses and flashy cars? Often more about debt than dollars. 💸 From reading countless income and asset statements, I've learned there are basically four ways people amass wealth:

1) Inheriting it. 🏰
2) Creating it through a business. 🏭
3) Playing the market and growing it through investments. 📈
4) The old-fashioned way: saving every dime and watching it grow with compounded interest. 💰

It's fascinating how different these paths are. Like the millionaire who's been driving the same Honda to Boeing for 30 years, now with 150,000 miles - that's a money mindset worlds apart from someone who's inherited their fortune. Just goes to show, wealth has many faces! 🌟

16/02/2023

This video is for anyone thinking about estate planning.

Money Models: :13
Learn why it is important to define your Money Model before you run down to your lawyer's office.

Estate Transfer: 1:50

Asset Protection: 2:30

Living Trusts: 3:00
Many think a trust will protect their assets. Learn why this is not true and how a living trust works, its value proposition, and its time horizon.

Conclusion: 5:20
Summary of each model and key points
The author of this video is a semi-retired attorney licensed in Washington, but with proficiency in trusts and estates, estate tax, and Medicaid/VA benefits and similar programs.

Links:
Articles:
Introduction to Estate Planning: https://tinyurl.com/yh8hkr4j

On asset protection, try this article: https://tinyurl.com/256hmvuu

If you like podcasts, here is one I did on retirement accounts and asset protection. Can a trust own a retirement account? https://tinyurl.com/kyx3xtmy

15/02/2023

If you are serious about doing something, ANYTHING, to comply with the estate planning legal requirements, then this video is for you. It is your first step BEFORE you even go to Mr. Google, your local attorney's website, or watch YouTube videos on living trusts.

This video is for anyone thinking about estate planning. Money Models: :13Learn why it is important to define your Money Model before you run down to your l...

14/02/2023

The motto of the IRS, according to tax lawyers. Pigs get fed. Yes, taxpayers are the pigs in this scenario. That is ok. Pigs are smart animals, smart enough at least to double their estate tax exemption when married to another pig. Dogs? They write down the wrong social on their tax return.

The real problem is the hogs. Hogs hide assets in dumb places. (The IRS can follow EVERYTHING). Hogs expense family vacations, deduct $50,000 for hair products and treatment (Trump actually did that), and get away with scamming people out of fourteen million but go to jail for failing to report it on their 1040.

The IRS is King Hog. If you own even a life insurance policy, the death benefit that pays to your kid, is included in your taxable estate. If you are the beneficiary of someone else's policy, when the insured dies, you receive an income tax-free payout. BUT, if you die before receiving the check, the amount is in YOUR taxable estate.

If you live in any of the twelve states with their own state death tax, such as Oregon and Washington, just replace IRS with "Department of Revenue" because all states have the same rule on this issue as the IRS. So, in Washington, life insurance could be taxed four times: once when the policy owner dies, again when the beneficiary dies even if not received, by the IRS, and then again by the state. Wow!

I just did a Masterclass on state-specific tax estate tax. I also wrote an article on Washington's three taxes on wealth. Any takers? Seriously, I will send you the link. Bueller. Bueller.

Geesh. Tough crowd.

13/02/2023

The Army taught me a lot about estate planning. Surprisingly, the Army's bible on training begins with their definition of planning. "Planning is the art and science of understanding a situation, envisioning a desired future, and laying out effective ways of making that future come about." Wow!

I started an online Academy to help beginners plan their estates and, more importantly, protect wealth against the four threats to wealth in America today: 1) high unreimbursed care costs, 2) unnecessary taxation, 3) family and financial mismanagement, and 4) lawsuit judgments. The first threat is by far the greatest threat. Fortunately, the Law gives us weapons and fortifications to defend our position.

The mistake I see people make is failing to slow down and understand the framework. The FIRST thing you must do before you pick up the phone to call a lawyer is to identify your money model. The Money Models, are estate transfer and asset protection. The legal documents required for each are completely different. The provisions within the documents are different.

The Army has thought about planning for centuries. The definition of planning is still so elegant. Almost, poetic. It is almost worthy of a Hallmark card. "Envision a desired future." What cracks me up is that, in the Army's case, the desired future is blowing something up.

21/01/2023

THE 2023 ASSET PROTECTION MASTERCLASS

16/01/2023

GO FROM uncertainty and confusion about your money TO confidence and clarity WITH the Asset Protection Masterclass.

WIth so many sources of information, do you feel overwhelmed with the technical mumbo jumbo of money managers and the legalese of lawyers? Does it seem hopeless to even try to learn?

Wouldn’t it be nice to receive reliable and expert information without worrying about a sales pitch and paying thousands in attorneys' fees?

Well, now you can. Join asset protection attorney, educator, and podcast host, Darol Tuttle, for the asset protection masterclass where you will learn:

- The three money models that you must know before beginning your estate or asset protection plan.
- How to start your own plan without going broke on attorneys' fees.
- His proven method to protect your retirement nest egg from the three major threats to wealth in America today.
- and much more!

Click the link below to register.

the 2022 live asset protection Masterclass Saturday, January 14 2023 at 9:30 am PST Free masterclass that will teach you how to protect your retirement…

09/01/2023

The Family Leader membership level is the best way to learn about estate planning, asset protection, and family wealth building.

✔️ Get access to weekly Office Hours to get answers when you are stuck and learn from the collective wisdom when you just need to increase your legal literacy
✔️ Be enrolled in the Nest Egg Course valued at $499
✔️ Draft a Limited Power of Attorney legal document to create your contingent asset protection plan valued at $1,800
✔️ Get exclusive Legal Guides, Checklists, Lexicons, and Infographics
✔️ Participate in the Monthly Meeting as a contributor

Are you still thinking of joining BoomX? Here's what Shannon Morehouse, a BoomX Family Leader, feels about the BoomX Academy.

Join her and see what other Family Leaders are learning to protect their hard-earned wealth that will last generations.

03/01/2023

📣 New article alert! Know more about the Spousal Lifetime Access Trust (SLAT) and why it is a great estate planning tool by clicking the link below.

A spousal lifetime access trust has many advantages that make it a great estate planning tool. With this trust, IRA assets can be used to benefit the surviving spouse while providing tax protections. The spousal lifetime access trust provides an estate tax credit amount equal to the applicable exemp...

30/12/2022

Ten states have a separate estate tax system that erode the value of a family's generational wealth. Most are unaware of this tax even when the tax rates can be as high as 20% as is the case in Washington state.

07/12/2022

A young financial professional from Chicago gives listeners an in-depth look at how they can protect their privacy and assets by using a unique investment vehicle.

This episode will challenge your thinking. Fact-based from the experience of three and a half decades of combined experience, Darol and Sarry make the argument that listeners can build their own family bank that can grow family wealth for generations.

Learn more about Sarry Ibrahim and how he can help you grow more wealth using this link: https://finassetprotection.com

Listen to the episode here: https://boomx.biz/thinking-like-a-bank-with-sarry-ibrahim-2/

06/12/2022

Legal documents help you grow and protect your wealth, establish family decision-making, and successfully transfer your property to the next generation without unnecessary loss or stress.

Episode 43 will give you the legal documents that you need in 8 minutes!

Listen to the episode here: https://boomx.biz/the-legal-documents-you-need-in-8-minutes/

06/08/2022

What is your biggest financial fear in retirement? What is the ONE thing that could derail the plan?

14/06/2022

My message is simple: the law, federal law, has solutions. I can point to several safe-harbor provisions in the law that were created to keep people from going broke. I am not over-stating that. It is shocking how few know about these solutions let alone leverage them. That is why I am hosting these FREE masterclass -to get the word out!

Topics include:
✔️ Difference between estate planning and asset protection
✔️ The four threats to wealth in America today
✔️ Legal safe-harbors that protect your money
✔️ the power of the Spousal Protection Trust: this trust is created by Federal Law and holds assets for the benefit of your spouse. It is a tax-savings trust and does NOT count as an asset for Medicaid purposes. Transfer penalties, lookback periods, and the dreaded Medicaid lien does not apply. It is the single, most powerful asset protection trust in American jurisprudence. If you are married, you need this trust
✔️ when to create and fund a trust called the Spousal Lifetime Access Trust
✔️ Why all couples need a Spousal Protection Trust
✔️ the advantages of Medicaid Asset Protection Trust and how, when used properly, eliminates the need for expensive long-term care insurance
BONUSES:
All attendees who are present until the end will receive:
✔️ a FREE legal document valued at $1,800 to begin your asset protection plan
✔️ a FREE "What You Need Asset Protection Checklist"

Reserve your spot here: https://bit.ly/JoinBoomXMasterclass

See you there!

on-demand asset protection master class Asset Protection Strategies To Protect Your Estate From High Costs Of Long Term Care The video below is a recording…

29/04/2022

Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes. In finance, a trust can also be a type of closed-end fund built as a public limited company.

A trust can be used to determine how a person’s money should be managed and distributed while that person is alive, or after their death. A trust helps avoid taxes and probate. A trust is one way to provide for a beneficiary who is underage or has a mental disability that may impair his ability to manage finances.

28/04/2022

Trusts are used for personal planning and hold personal assets. Business entities such as corporations, partnerships, and limited liability companies hold business assets. Many families own a rental property but fail to view the rental house as a business asset because they do not view themselves as operating a business. This is unfortunate because business entities offer many advantages, which Darol discusses in this episode.

Trusts are similar to limited liability companies because the trust is able to protect assets if drafted correctly. Learn the two most important benefits of trusts that hold your family's wealth.

Listen to this episode for FREE by going to boomx.biz/episodes now!

27/04/2022

If you are like most people near or in retirement, your biggest fear in terms of financing, the quality and much-deserved retirement of your dreams is unreimbursed medical expenses. We say that we have a nest egg for that rainy day. Let's face it at a certain age, a rainy day is always medical. I receive no more questions with more anxiety than those about Medicaid.

Listen to the latest episode of the BoomX Show Laws of Money Podcast by clicking the link below and let's take a deeper dive into Medicaid!

The Three Benefits of a Trust in asset protection and estate planning.

22/04/2022

Brand new episode of the BoomX Show: Laws of Money podcast will be released today at 7PM EST! 🎧

21/04/2022

Planning has four components. Each component is integral to retirement planning but has different disciplines.

By signing up as a BoomX Citizen, you'll get FREE access to the Asset Protection Masterclass which includes a FREE e-Book that I personally crafted for you.

Click the link to register!

20/04/2022

WHAT IS YOUR OBJECTIVE?

When I begin workshops or start a client meeting, I often ask questions like these:

Why are we here today? What is the purpose of this meeting? What are your objectives?

In almost every case, the answer to these questions are this: you have assets that you are afraid you will lose. Really, you are afraid of going broke. That is the central concern of most retirees.

19/04/2022

Asset Protection is the lawful and ethical repositioning of an asset so that creditors are not able to reach it.

05/04/2022

Start learning the Laws of Money now!

If you are a member, go there now. If you are not a member, join now for FREE and we will enroll you automatically to the BoomX Show Companion Course!

Go to boomx.biz to learn more.

30/03/2022

The BoomX Academy teaches retirees how to protect their retirement assets throughout their lifetimes as well as for future generations.

Students will not only learn how to protect their wealth but also receive the legal documents needed to implement their plan legally.

You can sign up as a Family Leader for only $1 on your first month, or purchase the Nest Egg Course at $249 for 6-month access. The Nest Egg Course is a comprehensive 5 hr course that explains Darol's method of protecting his clients' wealth.

By the end of the course, you'll be able to:

✔️ Learn how asset protection works and this proven strategy is used by law firms across the nation.
✔️ Learn how to easily draft your legal document.
✔️ Learn the threats to wealth in the US
✔️ Identify the assets you wish to protect using this financial planning model
✔️ Learn the difference between a trust and an asset protection trust.

You'll also have access to a LIVE WEEKLY MEETING with Darol Tuttle to ask questions related to the course and drafting app.

Learn more by going to https://boomx.biz/how-to-protect-your-next-egg-the-course/

27/03/2022

Intestacy, or dying without a Will is a poor decision. When a person dies intestate, they can't control who will inherit their assets.

In this episode of The BoomX Show: Laws of Money Podcast, host Darol Tuttle shares his observations and feelings related to the end-of-life, attitude about death and how negative, counter-productive emotions block us from making this critical transition easier and less stressful for our family.

Listen to this episode here: https://boomx.biz/be-a-hero-to-your-family/

24/03/2022

This Asset Protection Masterclass is happening tomorrow, March 24, 2022, 6:30PM Pacific Time via Zoom.

Don't miss it, click the link below to join
https://us02web.zoom.us/j/89171789604
https://us02web.zoom.us/j/89171789604
https://us02web.zoom.us/j/89171789604

Topics include:
✔️ Difference between estate planning and asset protection
✔️ The four threats to wealth in America today
✔️ Legal safe-harbors that protect your money
✔️ the power of the Spousal Protection Trust: this trust is created by Federal Law and holds assets for the benefit of your spouse. It is a tax-savings trust and does NOT count as an asset for Medicaid purposes. Transfer penalties, lookback periods, and the dreaded Medicaid lien does not apply. It is the single, most powerful asset protection trust in American jurisprudence. If you are married, you need this trust
✔️ when to create and fund a trust called the Spousal Lifetime Access Trust
✔️ Why all couples need a Spousal Protection Trust
✔️ the advantages of Medicaid Asset Protection Trust and how, when used properly, eliminates the need for expensive long-term care insurance

BONUSES:
All attendees who are present until the end will receive:
✔️ a FREE legal document valued at $1,800 to begin your asset protection plan
✔️ a FREE "What You Need Asset Protection Checklist"

See you there!

23/03/2022

📢 The Law has a solution. In light of the recent and shocking events, I am hosting a FREE masterclass! 💯

Let's just say it. The COVID19 shutdowns, supply chain problems, and the Russian invasion of Ukraine raises a big concern: recession. In or near retirement, recession, inflation, or market jitters can erode or even deplete your family's wealth.

I would be far less concerned but for legal changes that occurred just two months before Covid 19 broke out. On December 19, 2019, the SECURE Act was signed and three other legal changes preceded it. Change your asset protection plan by removing once sacred legal safe-harbors. Legal safe-harbors, such as a homestead exemption for a personal residence, are the foundation of your asset protection plan. (I am still shocked I even had to write that. It is shocking because, until now the laws of estate planning and asset protection rarely changed).

The events occurring right now, this very moment, are pivotal. Those who correctly read the situation will be protected.

✔️ The Good News:

There is good news! The Law does have solutions, one of which originated centuries ago due to another pandemic, the Black Plague. That solution, an asset protection trust, still exists today. Family leaders should thoroughly understand how these legal solutions reduce financial loss even if caused by a recession. It sounds crazy, but it is absolutely true.
In a FREE legal master class Thursday evening, March 24, 2022 at 6:30 pm, I will describe the legal changes and the threat they pose to your family's wealth

✔️ Solutions:

I will show you how eight possible legal solutions protect your wealth during your lifetime, even in times of crisis, that of your spouse or partner, and leaves far more for subsequent generations.

If you have a personal residence or retirement accounts, attend this FREE masterclass. I will also provide to all students who stay to the end a significant BONUS valued at $1,800.00. I mean that quite literally.

Register here: https://bit.ly/AssetProtectionRegistration
https://bit.ly/AssetProtectionRegistration
https://bit.ly/AssetProtectionRegistration

04/03/2022

Power of Attorney is a document NOT a job title.

But I get it! “I’m the POA for my Dad.”