McDermott Will & Schulte, a global law firm

A spousal lifetime access trust (SLAT) is a popular estate-planning tool for married couples, but failing to anticipate divorce when creating a SLAT can turn a once great planning opportunity into an expensive nightmare for the couple. In their article for Trust & Estates, Christen K. Douglas and Joseph J. Viviano explore the unexpected and undesirable income tax consequences that can arise from SLATs after divorce and how careful drafting and communication can help avoid these problems.