A SPA Trust – Special Power of Appointment Trust – is an opportunity for you to take advantage of the current gift tax exemptions – which are scheduled to be cut in half in 2026, and potentially even sooner to protect your assets. SPA trusts are irrevocable trusts that are very flexible and allow the creator of the trust to appoint trustees with the authority to distribute the assets. While a SPA Trust, like other irrevocable trusts, cannot be changed, modified, or terminated by the person who created it they do offer a great deal of flexibility and control to the person who creates the trust, the grantor.
A SPA Trust offers several benefits over other types of trusts and asset protection tools:
Special Power of Appointment Trusts are available in Illinois.
There are also some disadvantages to a Special Power of Appointment Trust:
If you think a SPA Trust is a good way to protect your assets, an experienced trusts attorney. A Special Power of Appointment Trust should be drafted by an estate planning attorney as part of a comprehensive estate plan that includes will, trust, power of attorney, and healthcare directive documents.
If you have questions about Special Power of Appointment Trusts or any other estate planning topics, please contact us to schedule a free consultation. To learn how an estate planning lawyer could help, call us for a consultation at 630-687-9100.
We provide legal services in Cook, DuPage, Kane, Lake, and Will counties.