In accordance with the Tax Cuts and Jobs Act, a person can transfer up to $11,580,000 without facing either estate or gift taxes. This amount, however, will lower at the end of 2026 and revert to $5,000,000. Many people are worried, however, that due to the change in political administrations that this amount will be lowered before then.
Spousal Lifetime Access Trusts are irrevocable trusts established by a donor spouse during his or her lifetime for the benefit of the other spouse. While the donor spouse gives up ownership of the assets, the beneficiary spouse continues to enjoy access to assets placed in the trust. Various issues should be considered if you are interested in creating a spousal lifetime access trust, and this article reviews just a few of these benefits.
# 1 – Asset Protection