How Do You Spell CLIFFORD TRUST?

1. A Clifford Trust, also known as a Spousal Lifetime Access Trust (SLAT), refers to a legal arrangement that allows an individual to transfer assets to an irrevocable trust for the benefit of their spouse while potentially reducing estate taxes. This trust gets its name from the landmark court case involving Clifford and Helen Clifford.

   In a Clifford Trust, the individual establishing the trust (grantor) transfers assets to the trust, effectively removing them from their taxable estate. The primary beneficiary of the trust is the grantor's spouse, who receives income and benefits from the trust for their lifetime. Although not obligated, the spouse can potentially provide financial assistance back to the grantor if the need arises.

   It is important to note that while the grantor's spouse serves as the primary beneficiary, other individuals (typically family members) can be named as secondary beneficiaries, allowing wealth transfer to subsequent generations. However, once assets are transferred to the trust, the grantor relinquishes control over the assets and is unable to change the terms of the trust or reclaim the assets.

   The Clifford Trust provides the grantor with potential estate tax benefits by removing assets from their taxable estate, thereby reducing the overall estate tax burden. By utilizing the trust in this manner, a person can potentially preserve more wealth for their family, shield assets from estate taxes, and provide for their spouse's financial security.

Common Misspellings for CLIFFORD TRUST