Description

As the 2025 estate tax exemption sunset approaches, estate planners and high-net-worth families are preparing for potential changes. In this episode, Greg and Scott welcome Darrian Hornedo, Vice President and Estate Planner at Baird, to break down one of the most talked-about estate planning strategies today—the Spousal Lifetime Access Trust (SLAT). Darrian explains how SLATs work, when and why to consider them, and the critical legal and emotional trade-offs involved.

They explore:

• Why SLATs are gaining popularity ahead of the 2025 exemption drop
• How to preserve indirect benefit while removing assets from your taxable estate
• Community property complications and partitioning strategies
• Key pitfalls—like reciprocal trust doctrine violations and divorce risks
• When to pair SLATs with other planning tools like ILITs and FLPs

Whether you're sitting just under the estate tax threshold or well above it, this episode will help you weigh the pros, cons, and real-world implications of locking in today's historic exemption.