This Month's Harvest:

How Advisors Can Position Spousal Lifetime Access Trusts (SLATs) to Married Couples

A spousal lifetime access trust (SLAT) can be positioned to married couples to “use” today’s elevated estate and gift tax exemption while keeping an income and emergency access lifeline through the beneficiary spouse. Advisors can frame SLATs as a high‑net‑worth planning strategy that balances tax efficiency with marital flexibility and control. Start with the core story: “Why a SLAT?”

• A SLAT lets one spouse gift assets out of the taxable estate, using their lifetime exclusion, while those assets remain available to the beneficiary spouse under the trust’s distribution standards. This feels less like a permanent “good‑bye” to wealth and more like moving it into a protected side‑bucket for the family.
• Present it as “use it before you lose it”: with the scheduled reduction of the exemption, SLATs can lock in today’s larger exclusion and remove future appreciation from both estates.
• Emphasize that the trust is typically designed so the beneficiary spouse’s standard of living is not compromised, which reduces emotional resistance to irrevocably parting with assets.

Determine the Right Fit: “Who is the right couple for a SLAT?”

• Best suited for couples who are happily married, have significant net worth, and can afford to irrevocably transfer appreciating assets without jeopardizing lifestyle. These couples often have concentrated positions or closely held business interests expected to grow.
• Couples should have sufficient non‑SLAT liquidity and income so they do not need regular, aggressive distributions from the trust, which could invite scrutiny under Internal Revenue Code Section 2036.
• Advisors can position SLATs as a fit for couples with strong marital stability but also a desire for creditor protection, multi‑generational planning, and retaining indirect access if circumstances change.

Best Way to “Position the benefits of a SLAT.”

• Tax efficiency: Gifts to a SLAT use the donor‑spouse’s lifetime gift and estate tax exclusion and push future growth outside both estates, leveraging the exemption.
• Access with protection: Because the spouse is a beneficiary, the couple maintains a back‑door line of access to trust assets through distributions to the beneficiary spouse, subject to the trust’s terms.
• Legacy and control: The trust can be drafted for long‑term, dynasty‑style planning in favorable jurisdictions, with creditor protection and detailed control over remainder beneficiaries.

How Best to Optimize Exemptions for Couples: “Positioning with two SLATs”

• For wealthier couples, advisors can discuss the possibility of each spouse creating a SLAT for the other to fully utilize both exemptions, but only if they understand the complexity.
• When positioning “dual SLATs,” stress the need to avoid the reciprocal trust doctrine by making the trusts meaningfully different in timing, assets contributed, dispositive provisions, and powers granted.

Conclusion: “Framing the risks”

• Be candid that SLATs are irrevocable; once assets are transferred, the donor cannot simply take them back, and access is only indirect through the beneficiary spouse or via carefully structured loans.
• Explain relational and life‑event risks: death of the beneficiary spouse severs the donor’s indirect access, and divorce can also cut off access, which is why definitions of “spouse” and potential “floating spouse” provisions matter.
• Highlight process: these trusts must be drafted by experienced estate planning counsel, and in some cases each spouse may need separate legal advice due to potential conflicts of interest.

Advisor communication tips with couples

• Engage both spouses fully in the discussion, ensuring each one understands the purpose, benefits, and trade‑offs of the SLAT and has the opportunity to express concerns and goals.
• Use visual flow charts and simple language to show how assets move into the trust, who can receive distributions, and what happens on death, divorce, or major life changes.

This framing lets advisors present SLATs not just as a technical trust structure, but as a strategic, couple‑centric tool that protects lifestyle today while optimizing estate and legacy outcomes for tomorrow. Discover how Wealth Advisors Trust Company can be an added solution partner for these types of conversations and much more by visiting our website, www.wealthadvisorstrust.com

For guidance on structuring a trust to meet your specific philanthropic and financial goals, you can consult with one of our Fiduciary Strategist team by visiting www.wealthadvisorstrust.com

January 2026

harvest@wealthadvisorstrust.com / www.wealthadvisorstrust.com

…because YOU expect more.

This Month's Harvest:

Partnership Through Collaboration: Wealth Advisors Trust Company and Advisors

At Wealth Advisors Trust Company, we work every day alongside financial advisors who guide families through some of their most consequential wealth decisions. One of the most impactful — and often emotional — choices in estate planning is selecting a trustee. While families may initially consider naming a relative or friend, experience shows that partnering with a corporate trustee offers a smoother, more secure path for both families and their advisory teams.

1. Objectivity That Protects Relationships

Trust decisions can strain even the strongest family ties. When a relative serves as trustee, the lines between personal and fiduciary roles blur. A corporate trustee brings impartiality and structure — applying the trust’s terms as written, without emotional involvement. This professional objectivity helps preserve family harmony and keeps the advisor’s relationship centered on guidance rather than conflict resolution.

2. Professional Fiduciary Expertise

Trust administration demands specialized knowledge across tax law, compliance, and asset management. Our dedicated fiduciary professionals provide technical precision, regulatory oversight, and consistency families need to ensure a trust operates exactly as intended. For advisors, this partnership means confidence that every fiduciary detail is executed with excellence, freeing them to stay focused on comprehensive wealth management.

3. Continuity Across Generations

A family member trustee’s capacity can be limited by circumstance — relocation, health, or the natural transitions of life. A corporate trustee provides enduring continuity, ensuring that the trust’s purpose and the advisor’s strategy remain intact for generations. Advisors can rest assured that their clients’ planning work is not disrupted by changes in family or leadership.

4. Shared Accountability and Reduced Risk

We operate under sound fiduciary standards and state regulatory oversight. That means families benefit from built-in compliance systems, insurance protections, and institutional stability. Advisors, in turn, avoid administrative pitfalls and reputational risk while maintaining confidence that every fiduciary action aligns with the highest legal and ethical standards.

5. Collaboration That Builds Trust — in Every Sense

At Wealth Advisors Trust Company, we see advisors as true partners. Our role is to complement yours — bringing fiduciary execution and technical administration that reinforce the trust between you and your clients. Together, we craft long-term solutions that preserve wealth, honor intent, and protect family relationships through every generation.

Partner With the Industry’s Leading Fiduciary Specialists

Choosing a corporate trustee is not about replacing family involvement — it’s about protecting the family’s legacy and your client relationship. To explore how Wealth Advisors Trust Company supports advisors nationwide with objective, kind, responsive fiduciary services, visit www.wealthadvisorstrust.com or connect with one of our Fiduciary Strategists today.

For guidance on structuring a trust to meet your specific philanthropic and financial goals, you can consult with one of our Fiduciary Strategist team by visiting www.wealthadvisorstrust.com

December 2025

harvest@wealthadvisorstrust.com / www.wealthadvisorstrust.com

…because YOU expect more.

This Month's Harvest:

Tax Benefits of Creating a Charitable Trust in South Dakota

Many people are inclined to use their assets to help leave the world a better place when they die. Some folks want to leave behind a philanthropic legacy. Others just want to use the money that they will no longer need to do some good in the world. The benefits of a charitable trust justify its application for this purpose.

Creating a charitable trust in South Dakota offers additional state-level tax benefits, as the state has no state income tax, capital gains tax, or estate tax. This allows trust assets to grow and be distributed without state-imposed tax burdens, maximizing both philanthropic impact and wealth preservation.

South Dakota State Tax Benefits

• No State Income Tax: South Dakota does not impose a state income tax on individuals or on income retained within a trust. This means that interest, dividends, and other income generated by the trust can accumulate free state-level taxation.
• No Capital Gains Tax: Assets in a South Dakota trust are not subject to state capital gains tax when they are sold for a profit. This is a major advantage for trusts holding appreciated assets, such as real estate, artwork, or securities, as it allows for more efficient growth of the trust corpus.
• No Estate or Inheritance Tax: South Dakota does not levy any state estate or inheritance taxes. This ensures that wealth can be transferred to charitable and non-charitable beneficiaries across generations without being eroded by state transfer taxes.
• Perpetual Duration (Dynasty Trusts): South Dakota has abolished the rule against perpetuities, allowing trusts to exist indefinitely. This enables long-term asset growth and protection across multiple generations while potentially avoiding federal estate taxes as assets pass from one generation to the next.

Federal Tax Benefits for Charitable Trusts

In addition to the state benefits, charitable trusts in South Dakota, when structured correctly as either Charitable Remainder Trusts (CRTs) or Charitable Lead Trusts (CLTs), also provide federal tax advantages:

• Immediate Charitable Deduction: Grantors can receive an immediate federal income tax deduction for the present value of a charitable contribution.
• Capital Gains Tax Avoidance (on Contribution): When appreciated assets are transferred to a CRT, the grantor may avoid immediate federal capital gains tax on the appreciation.
• Reduced Estate and Gift Taxes: Charitable trusts can be used to lower the value of the grantor's taxable estate, potentially reducing federal estate and gift taxes on assets passed to non-charitable heirs.

Key Considerations

To leverage South Dakota's favorable trust laws, the trust must have a legal nexus to the state, often achieved by appointing a South Dakota-based corporate trustee, such as Wealth Advisors Trust Company.

Sure, there are plenty of tax and wealth benefits for you and your family included in setting up a charitable trust, but let’s not forget the peace of mind you will achieve by knowing you are using your wealth to do some good in the world. The philanthropic aspect of a charitable trust means you can choose the causes that are most important to you and use the assets you have earned throughout your life to give back to them. The possibilities are endless, and let us not forget you cannot take it with you.

For guidance on structuring a trust to meet your specific philanthropic and financial goals, you can consult with one of our Fiduciary Strategist team by visiting www.wealthadvisorstrust.com

November 2025

harvest@wealthadvisorstrust.com / www.wealthadvisorstrust.com

…because YOU expect more.

This Month's Harvest:

TAX CONSIDERATIONS FOR CHARITABLE PLANNING IN 2025

[ Advisors Edition ]

Now is the best time to consider charitable trust planning because significant changes in U.S. tax law are set to take effect starting in 2026, most notably through the “One Big Beautiful Bill” (OBBB) Act. By acting in 2025, donors and families can take advantage of existing, more favorable tax rules—particularly higher deduction limits and more generous treatment of charitable gifts—while aligning their estate and philanthropic goals under current regulations.

Immediate and Upcoming Tax Advantages

Charitable trusts currently offer substantial tax deductions, including immediate removal of assets from your taxable estate, reduction of capital gains tax on appreciated assets, and income tax benefits. Starting in 2026, new laws will introduce a 35% cap on itemized deductions and require charitable giving to exceed 0.5% of Adjusted Gross Income (AGI) before qualifying for deductibility, making high-value giving less efficient for top earners.

Control, Predictability, and Flexibility

Charitable trusts provide more control over how charitable gifts are distributed, can support causes for many years, and guarantee predictable income streams for nonprofits and beneficiaries. This makes them especially valuable now, while donors can lock in long-term planning under current rules.

Rising Estate and Investment Pressures

Ongoing asset inflation mean that trusts are vital for minimizing estate taxes, avoiding probate, preserving wealth, and adapting to increasingly complex family circumstances and cross-state inheritance challenges. Planning ahead protects assets and future-proof your strategy against upcoming legal changes.

Tax Strategies for 2025

Charitable trusts that make large, strategic gifts will retain valuable tax benefits, but those planning to make smaller gifts or spread gifts across multiple years should carefully consider the impact of the 0.5% AGI floor and the new deduction cap.​ 2025 is an ideal year to accelerate charitable giving and trust funding under current, more favorable rules before the new limitations take effect

Personalized Impact

What this means for you: If you are considering a charitable trust, making gifts or establishing trusts in 2025 will help you secure better tax outcomes and maintain the flexibility and control you want over your legacy. Acting now safeguards your philanthropic intentions and maximizes the financial benefits before less favorable laws take effect next year.

harvest@wealthadvisorstrust.com / www.wealthadvisorstrust.com

…because You expect more.

This Month's Harvest:

THE BBB OVERVIEW

[ Advisors Edition ]

Hello, skim this information once and you’ll know exactly which clients to call first.

The new One Big Beautiful Bill is packed with tax, retirement, and estate planning changes. But let’s be honest—no one has time for a 20-page summary. The Harvest newsletter is designed for speed: a 60-second read organized by client type.  Instead of a laundry list of provisions, you’ll see exactly which clients are most affected, why it matters, and what you can do next. Use it as a quick filter: if you recognize your client in a category, you’ll know right away where the opportunities—and the risks—are.

1) High-Net-Worth Individuals & Families:

The $15M/$30M estate, gift, and GST exemptions mean advisors will be structuring larger, more complex transfers. A corporate trustee is essential when:

• Assets are split between trusts (dynasty, SLATs, GST trusts) to maximize exemptions.
• Family governance requires neutrality (siblings/children as beneficiaries).
• Beneficiaries live in multiple states and want privacy, asset protection, and continuity.

South Dakota’s directed trust framework (administrative-only corporate trustee + advisor retained in seat) enables the financial advisor to maintain control over investment management, while the trustee handles distributions, record-keeping, and tax filings.

Advisor Action Points:

• Re-evaluate irrevocable trust structures: could higher exemptions fund new trusts administered by a corporate trustee for better control and protection?
• Discuss with families whether neutral administration (corporate trustee vs. sibling/friend) avoids long-term conflict once more wealth moves into trusts.

2) Business Owners & Entrepreneurs: 

Many will take advantage of permanent lower tax brackets and full expensing to grow and transfer business wealth. Business succession often involves closely held shares—an area where a neutral, administrative-only trustee:

• Manages trust compliance while allowing the advisor to continue managing liquidity strategies.
• Provides structure around buy-sell agreements, redemptions, or staged gifting of ownership.
• Avoids family disputes when multiple children (some active, some inactive in the business) are beneficiaries.

South Dakota’s trust statutes provide entrepreneurs with flexibility, allowing them to adapt succession plans as laws or business needs change through decanting, trust protectors, and directed structures.

Action Points (Advisor-facing):

• When succession planning, suggest placing closely held shares into a directed trust with a corporate trustee—this separates governance from family dynamics and preserves continuity.
• Use trusts as vehicles to fund buy-sell agreements or hold business real estate, administered by a neutral trustee.
• Position the corporate trustee as the continuity solution: when founders retire or pass away, the trust doesn’t lapse into family conflict—the trustee ensures the plan is carried out.

3) Retirees & Older Clients:

“Senior Deduction” could practically eliminate taxes on Social Security for many. With healthcare and secure income being top concerns, tax relief is meaningful—but temporary.

Action points:

• Estimate clients’ tax scenarios post deduction.
• Evaluate timing of RMDs and Roth conversion considerations, given uncertainty around future RMD expansion
• Plan near-term moves while deductions remain active (through 2028).

4) Families with Children:

New child-focused savings opportunities have emerged, offering greater flexibility in education and legacy savings.

Action points:

• Set up Trump Accounts for eligible children.
• Revisit and expand the use of 529 plans for broader educational needs.
• Adjust education saving plans, leveraging the child tax credit and new tools.

5) Middle- and Upper-Middle Income Families:

Temporary deductions, such as tips, overtime, and auto loan interest, can be used to alleviate taxes through 2028. These are behaviors many clients already engage in.

Action points:

• Incorporate these new deductions into tax projections.
• Encourage documentation of qualifying overtime and tip income.
• Consider buying an eligible car if you plan to make an auto purchase and want to secure a tax deduction.

harvest@wealthadvisorstrust.com / www.wealthadvisorstrust.com

Christopher Holtby - Co-Founder,  National Sales Director
Ruben Batth - Relationship Manager

…because You expect more.

This Month's Harvest:

Simplifying the Conversation Around Generational Wealth

Talking about money is one thing. Understanding a family's philosophy of wealth to build an enduring, actionable plan—well, that’s another. Yet, it's the best way to start the conversation about generational wealth.

Sometimes, clients who’ve built their success from the ground up struggle to communicate their values, wishes, or long-term vision to the next generation. As financial advisors, estate attorneys, and CPAs, you often have to balance the technically complex with the deeply personal nature of legacy.

In this month's Harvest Newsletter, we encourage you to adopt a different approach to these conversations. Instead of diving straight into technical planning, start by asking something simple:

“What does success look like for your family two generations from now?”

When clients take time to reflect on their ‘why,’ the planning that follows—whether it involves a directed trust, charitable trust, or generational transfer strategy—becomes more thoughtful, intentional, and easier to shape.

Consider these questions to help spark the conversations in your own practice.

• “What values do you want your family to carry forward?” – This helps align investment and wealth strategies with the client’s personal legacy.
• “If you had to explain your wealth philosophy in one sentence, what would it be?” - This encourages clarity and gives advisors a north star to guide ongoing planning.
• “What do you want your planning to stand for and what conversations have you had—or avoided—with your heirs about wealth?” – This invites reflection,  uncovers communication gaps, and creates space for proactive legacy planning.

At Wealth Advisors Trust Company, we strive to enhance and expand the client-advisor relationship with customized trust solutions. If you're looking to bring clarity to complexity, let’s connect and work together to turn your growth into a full harvest.

August 2025

harvest@wealthadvisorstrust.com / www.wealthadvisorstrust.com

Christopher Holtby, Principal & National Business Development Manager
Ruben Batth, Relationship & Business Development Manager

…because YOU expect more.

This Month's Harvest:

Beyond Transactions: 7 Talks That Build Real Client Loyalty

Clients don’t always know what to ask, but you do. As advisors, we know that the right question at the right moment can shift an entire relationship. Still, even the most seasoned professionals can appreciate a tool that helps spark those deeper, trust-building conversations. This month, we’re sharing a visual guide designed for exactly that.

Start Here: 7 Touchpoints to Deepen Client Trust and Clarity

This simple yet powerful infographic outlines seven stages most clients go through during their wealth management journey—from defining their family’s philosophy of wealth to preparing for the inevitable transition of wealth. Think of it as a conversation map. One that helps uncover opportunities, gaps, and goals that might otherwise go unspoken.

Here’s a quick look at how some advisors are already putting it to work:

• Philosophy of Wealth: Ask: “What does success look like for your family two generations from now?” This question often uncovers more than just financial goals—it opens the door to legacy intentions, family values, and sometimes, quiet concerns about the next generation.
• Reducing Estate Taxes: One advisor used the infographic when a client was preparing for a major liquidity event. Just walking through these stages revealed a trust strategy that saved the client millions in potential estate taxes before the deal was even signed.
• Changing of the Guard:  A long-time client recently asked, “How do I make sure my kids are prepared to inherit, not just receive?” - That one concern prompted a restructuring of her trust, which gave her more control and peace of mind, ensuring her intentions would live on with clarity.
• Protecting from Divorce or Creditors: Try framing it like this: “What happens if your child marries the wrong person—and then they split?”
  Most clients haven’t considered how vulnerable an unprotected inheritance can be. This conversation often leads to powerful shifts in planning and protection strategies.

Whether you're building new relationships or strengthening existing ones, these seven stages are designed to enhance how you guide clients through life’s most important wealth decisions.

If you’d like to walk through the stages together — or explore how our trustee services fit into the broader picture —  I’d be happy to connect to help your clients move from uncertainty to clarity, and from questions to confident action.

👉 7 Touchpoints to Deepen Client Trust and Clarity 👈

Turning your growth into a full harvest!

Christopher Holtby - Managing Partner, National Sales Director

Phone: (605) 776-7012 // Email: Holtby@wealthadvisorstrust.com www.wealthadvisorstrust.com

July 2025

This Month's Harvest:

Smart Moves for Smarter Trust Planning

Did you know? Roughly 75% to 80% of clients still name a family member or friend as trustee when their trusts become irrevocable. However, as family structures become increasingly complex, particularly in blended families or multigenerational households, the risk of disputes and lawsuits rises dramatically.

According to a 2022 Cerulli Associates study, fewer than 15% of financial advisors actively guide clients in selecting appropriate trustees, despite the fact that trustee mismanagement is a top cause of trust litigation. Many lawsuits stem from advisors unknowingly taking direction from individual trustees who may be unprepared or biased, putting the advisor’s fiduciary duty and reputation at risk.
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We invite you to join our 15-minute webinar, where we demystify this process and provide you with actionable tools to help you deepen your client relationships.

📅 Date: Monday, June 23rd at 2:30 PM CST
⏰ Time: 15 minutes
📍 Where: Sign Up

** Sign up, and if you are not able to attend, we will send you a copy of the slides and the webinar recording**

During this 15-minute session, we'll provide the answers to:

1. What are the four factors that make a great family trustee?
2. What are the top three activities a family trustee could be sued on?
3. How do you avoid getting sued by a family trustee and beneficiaries?
4. How can an advisor grow their fee-based AUM using trustee services?

Turning your growth into a full harvest!

Christopher Holtby - Managing Partner, Business Development Manager

Phone: (605) 776-7012 // Email: Holtby@wealthadvisorstrust.com

www.wealthadvisorstrust.com