Defense of Trust Grantor in Exercise of Grantor Trust "Swap Power"
Jul 29, 2021OUTCOME: Spouse's claims were rejected at first hearing on the matter. Client was found to have exercised power correctly.
Client and spouse previously created "spousal lifetime access trusts" (SLATs) for each other for estate planning purposes. Each transferred 1/2 community property ownership in family business to each ... trust for the benefit of the other. Several years later, spouse filed for divorce and I assisted client to exercise "swap power" to exchange of trust assets for assets of equivalent value to gain control of business interest in spouse's trust. Spouse brought an action to set aside exercise of swap power.
