What is a QDOT trust?
QDOT trust (QDOT stands for Qualified Domestic Trust) is a special trust set up when a non-citizen spouse is the surviving spouse. The tax law generally does not allow an individual to obtain the marital deduction when leaving assets to a non-citizen spouse. The marital deduction is obtained if the property is held in a QDOT trust.
A QDOT Trust (Qualified Domestic Trust) is a special Trust for a surviving non-citizen spouse. The tax law generally does not allow an individual to obtain the marital deduction when leaving assets to a non-citizen spouse. The idea is that the surviving non-citizen spouse could return to their country of origin and take the assets with them, and thus avoid estate taxes on the assets. The marital deduction is available if the property is held in a QDOT Trust. What is a Charitable Remainder Trust (CRT)? A Charitable Remainder Trust permits a grantor to defer the income tax consequences on the sale of a capital gain property and make a charitable gift. With a CRT, you irrevocably put assets (cash, securities, etc.) in a trust. The trust then provides income payments annually to you or a named beneficiary. Depending on how you set up the trust, the payments will continue for a fixed period of time, or until the death of the beneficiary. At that time, the remaining assets are transferred fr
A QDOT trust (QDOT stands for Qualified Domestic Trust) is a special trust set up when a non-citizen spouse is the surviving spouse. The tax law generally does not allow an individual to obtain the marital deduction when leaving assets to a non-citizen spouse. The marital deduction is obtained if the property is held in a QDOT trust.
