Spousal lifetime access trust is the full phrase behind the acronym SLAT, describing an irrevocable trust created by one spouse for the benefit of the other spouse and often descendants. The grantor spouse makes completed gifts to the trust, removing assets and growth from their taxable estate while allowing the beneficiary spouse to receive distributions during life. This structure offers estate tax efficiency with indirect access to funds through the beneficiary spouse. Spousal lifetime access trusts frequently own life insurance to provide estate liquidity and legacy capital outside both spouses' estates. Because the trust is irrevocable, design must carefully consider divorce risk, distribution standards, and long-term family objectives.

Advisors and estate planners use the term spousal lifetime access trust when explaining SLATs to clients who need clarity beyond the acronym. They coordinate funding strategies, such as gifting interests in closely held businesses or funding large trust-owned life insurance policies. Discussions include reciprocal trust risks, powers of appointment, and how the trust operates if the beneficiary spouse dies first. Advisors emphasize that a SLAT should be funded with assets that the couple can afford to remove from their personal balance sheet. Understanding spousal lifetime access trusts helps advisors integrate advanced estate tax strategies with practical considerations about access, control, and family governance.