What Is A QDOT Trust And Do I Need It?
Are there any other safeguards we should have in our wills? — Wendy Cook A. (I’m assuming your husband is a US citizen). You will *receive* his assets regardless of a QDOT or not. This is a tax question. Everything a person leaves their spouse *in qualified form* (see below) is deductible. After subtracting that (& charitable bequests) there is a tax-free amount of $675,000 this year, rising to $1,000,000. Assets left to a non-citizen spouse will not be deductible unless in a QDOT (Qualified Domestic Trust), which is designed to assure that they will be taxed at *your* death. If your husband’s estate is under $675,000 it won’t matter if the bequest to you is deductible — there still won’t be tax. And if it’s larger, you’ll still get it — but you’ll pay a tax. *If* his total estate (including insurance, etc.) is more than $675,000 or expected to rapidly grow, his estate plan should provide for a QDOT. Otherwise, don’t worry.
