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ILITs and the Reciprocal Trust Doctrine | Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.


Throughout 2020, as many tax attorneys and their clients continuously worried about potential changes in federal transfer tax laws that could result with an administration change, numerous articles were published and webinars held regarding spousal lifetime access trusts (SLATs) and the interplay of SLATs and the reciprocal trust doctrine. With the likelihood that the Biden administration will seek to rollback the exemption amounts for the estate, gift and GST tax as provided under the 2017 Tax Cuts and Jobs Act, it is important to keep in mind that an analysis of the reciprocal trust doctrine should also be on the checklist when creating irrevocable life insurance trusts (ILITs) for spouses. ....

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