Trust Strategy Comparison

Compare estate planning strategies side-by-side. Understand the tax implications, complexity, and best use cases for each approach.

Select Strategies to Compare

Popular Comparisons

First Strategy

Second Strategy

Attribute	Spousal Lifetime Access Trust (SLAT)	Grantor Retained Annuity Trust (GRAT)
Name & Category	Spousal Lifetime Access Trust (SLAT) trust structure	Grantor Retained Annuity Trust (GRAT) trust structure
Priority Level	High	High
Complexity	Complex	Complex
Timeframe	2-3 months	2-10 year GRAT term
Tax Savings Potential	Removes $15M+ from taxable estate while maintaining family access. At 40%, saves up to $6M.	Potentially millions—depends on asset appreciation exceeding the 7520 rate.
Applicable Wealth Brackets	$15M-$30M$30M-$75M$75M-$150M$150M-$500M$500M+	$15M-$30M$30M-$75M$75M-$150M$150M-$500M$500M+
Legal Authority	IRC §671-679 (grantor trust rules); Common law reciprocal trust doctrine	IRC §2702 (qualified annuity interests); IRC §7520 (Section 7520 rate)
Grantor Trust Status	Grantor	Grantor
Revocable vs Irrevocable	Irrevocable	Irrevocable
Asset Protection	Partial	No
GST Exemption Allocation	Yes	No
Income Tax Benefits	Limited	Limited
Key Risks	•Reciprocal trust doctrine for dual SLATs •Divorce risk—access depends on marriage •Grantor trust status implications	•Mortality risk—if grantor dies during term, assets revert to estate •Only effective if assets outperform 7520 rate •Rolling GRATs needed for risk management
Prerequisites	• basic-will • revocable-living-trust	• basic-will
Action Items	→Determine optimal funding level →Draft trust with experienced estate attorney →Ensure sufficient differentiation if creating dual SLATs + 2 more	→Identify high-appreciation assets →Calculate optimal GRAT term and annuity →Consider "rolling GRAT" strategy + 2 more

Use Case Guidance

Choose Spousal Lifetime Access Trust (SLAT)

If:

✓You are married and want to remove assets while maintaining indirect access through your spouse
✓You have significant appreciation expected and want to avoid reciprocal trust issues
✓You prefer certainty over asset performance requirements

Best for: Married couples with $15M+ in assets

Choose Grantor Retained Annuity Trust (GRAT)

If:

✓You own highly appreciating assets (founder stock, tech holdings, real estate)
✓You are comfortable with mortality risk during the GRAT term
✓You want asset growth above the IRS 7520 rate to pass tax-free

Best for: Founders with concentrated positions or volatile assets

Combine Both?

Many sophisticated plans layer multiple strategies:

→Both work for $15M-$30M wealth brackets; Both address trust structure
→Diversify risk across different trust vehicles and tax approaches
→Optimize for tax, protection, and wealth transfer across multiple generations

Consult an estate planning attorney to design a layered strategy tailored to your situation.

Dynasty Trust Jurisdiction Comparison

State	Max Trust Duration	Self-Settled DAPT	No State Trust Income Tax	Notes
SD	Perpetual	Yes	Yes	Gold standard. No state income tax on trusts. DAPT available. Premier trust situs.
NV	Perpetual (365 years)	Yes	Yes	No state income tax. Strong DAPT. 365-year rule of perpetuities.
AK	Perpetual (1,000 years)	Yes	Yes	No state income tax. Pioneer in DAPT legislation (1997).
DE	Perpetual	Yes	No	Leading trust jurisdiction. DAPT available. Has state income tax on trust income from DE sources.
WY	Perpetual (1,000 years)	Yes	Yes	No state income tax. Strong privacy protections.
NH	Perpetual	No	Yes	No income tax on trusts with no NH beneficiaries. No DAPT.
TN	Perpetual (360 years)	Yes	Yes	No state income tax on trust interest/dividends.

★Gold Standard

South Dakota offers perpetual trusts, no state income tax on trust income, and world-class trustee infrastructure. First choice for dynastic wealth preservation.

⚡Strong Alternative

Nevada (365 years), Alaska (1,000 years), and Wyoming (no state income tax, excellent DAPT rules) offer comparable benefits with strong trust law traditions.

ℹConsider State Residence

Dynasty trust situs can diverge from your state of residence. Tax and income benefits depend on selecting the right jurisdiction for your goals.