Drafting SLATs That Survive the IRS and a Divorce: Reciprocal-Trust Differentiation, Floating-Spouse Provisions, and QSBS Stacking

Christopher M. Klug, Co-Founder | Basswood Counsel

Christopher M. Klug is a co-founder of Basswood Counsel and an international tax planning attorney whose practice spans corporate tax structuring, cross-border transactions, private equity, estate planning, and family office strategy. He pairs a large-firm background with a boutique, hands-on partnership approach, working closely with each client’s financial advisors, accountants, and leadership team so that every decision aligns with their broader goals. He is known for listening first and building customized solutions rather than relying on templates.

• Education & Credentials

Mr. Klug earned his LL.M. from Georgetown University Law Center, his Juris Doctor from Michigan State University College of Law, and his Bachelor of Arts from Michigan State University. He is admitted to practice in the District of Columbia, Illinois, Michigan, New York, Maryland, and Virginia.

• Recognition & Leadership

Mr. Klug is a co-founder and partner of Basswood Counsel, formerly Klug Counsel PLLC, where he holds a founding leadership role. Under its leadership, the firm received Integra International’s 2025 Firm of the Year Award, recognizing its participation in the global association’s cross-border collaboration and professional community.

• Professional Involvement

Mr. Klug is an active contributor to the international tax community. He presents regularly in Integra International’s webinar series for member firms worldwide, including a session on U.S. income tax treaties and planning opportunities. He has also taken part in the Private Client Forum Americas, joining fellow tax and estate planning practitioners at the 2024 program. Earlier in his career he served as an adjunct professor in Siena College’s M.S. in Accounting program, teaching advanced tax accounting.

• Experience

Mr. Klug advises businesses, funds, and individuals on domestic and international taxation, tax controversy, corporate and business planning, mergers and acquisitions, cross-border transactions, and domestic and international estate and trust administration. Before co-founding Basswood Counsel, he held senior roles including Managing Partner of the Washington, DC office of BurgherGray LLP and partner at CKR Law LLP, and he is founder and principal of CK Tax Services LLC. A former tax professor, he brings a strong foundation in subchapter C and S corporate taxation and partnership taxation to the strategies he builds for corporations, partnerships, private equity funds, nonprofits, individuals, and family offices.

Gina Jeyoung Lee, Partner & Co-Founder | Basswood Counsel

Gina Jeyoung Lee is a partner and co-founder of Basswood Counsel and a tax and estate planning advisor with extensive experience in U.S. tax law and tax treaties. She provides strategic counsel on individual and business tax planning, compliance, and controversies, along with domestic and international estate planning, and has been instrumental in helping clients with new business entity formation and fund formation while keeping them compliant with corporate regulatory requirements. She is known for understanding each client’s circumstances and tailoring her advice to their needs.

• Education & Credentials

Ms. Lee earned her Juris Doctor from the Antonin Scalia Law School at George Mason University and her undergraduate degree from Chapman University. She is admitted to the State Bar of California and is fluent in Korean.

• Recognition & Leadership

Ms. Lee is a partner and co-founder of Basswood Counsel, one of the founding members who established the boutique tax, corporate, and securities firm based in Washington, DC.

• Professional Involvement

Ms. Lee is active in the professional and business community. She co-presents Basswood Counsel’s Under the Basswood Tree podcast, with episodes addressing the strategic importance of estate planning, expatriation and covered expatriate status, and cross-border reporting under FBAR and FATCA. As partner and co-founder, she has also represented the firm in its engagement with the Asian American Chamber of Commerce, which Basswood joined in 2025.

• Experience

Ms. Lee focuses her practice on individual and business tax planning, compliance, and controversies, together with domestic and international estate planning, and she advises on business entity formation, fund formation, and corporate regulatory compliance. Before co-founding Basswood Counsel, she practiced as an associate at BurgherGray LLP. She is committed to understanding each client’s unique circumstances and customizing planning opportunities to suit their needs.

SESSION 1 – The Mechanics of SLATs | 1:00pm – 1:20pm

A SLAT shifts assets out of the donor’s taxable estate while preserving indirect access through the beneficiary spouse. This session covers how the trust is created, who holds each interest, and how the donor keeps practical benefit.

SESSION 2 – Maximizing the Lifetime Gift Tax Exemption | 1:20pm – 1:40pm

Today’s lifetime gift tax exemption is permanent and historically high, but a future Congress could still reduce it. This session shows how to deploy it through a SLAT now and size gifts to capture the full available shelter.

SESSION 3 – Tax Efficiencies: Estate, Gift, and Income | 1:40pm – 2:00pm

A properly structured SLAT shields transferred assets from estate and gift tax while handling trust income efficiently. This session compares grantor and nongrantor income tax treatment and shows how to align it with the client’s transfer tax goals.

BREAK | 2:00pm – 2:10pm

SESSION 4 – Avoiding the Reciprocal Trust Doctrine | 2:10pm – 2:30pm

When both spouses create trusts for each other, the reciprocal trust doctrine can unwind the planning and pull assets back into both estates. Learn to differentiate paired SLATs in terms, timing, and powers to keep the transfers intact.

SESSION 5 – Divorce and the Premature Death of a Spouse | 2:30pm – 2:50pm

A SLAT depends on the marriage, so divorce or the premature death of the beneficiary spouse can cut off the donor’s indirect access. Examine the floating-spouse provisions and powers of appointment that protect the donor if the marriage ends.

SESSION 6 – QSBS Stacking Through a Nongrantor SLAT | 2:50pm – 3:10pm

Gifting qualified small business stock to a nongrantor SLAT creates a separate taxpayer that can multiply the Section 1202 gain exclusion. Learn how stacking works, when the stock and trust qualify, and how it pairs with the SLAT’s estate benefits.