Qualifying Domestic Trust - QDOT
 |
Definition of 'Qualifying Domestic Trust - QDOT'A type of trust that allows taxpayers who are not U.S. citizens to claim the marital deduction for estate-tax purposes. Spouses without citizenship are not eligible for the marital deduction without a qualifying domestic trust. QDOTs are similar to QTIP trusts in that the marital deduction is conditional upon the inclusion of assets inside the trust. |
 |
Investopedia explains 'Qualifying Domestic Trust - QDOT'Although establishing a QDOT is often easier and faster than applying for citizenship, this type of trust is not without risk. There are numerous provisions pertaining to this type of trust that must be obeyed carefully in order for the trust to remain valid. QDOTs apply only to spouses of decedents who died after November 10, 1988. At least one trustee must be either a U.S. citizen or domestic corporation that is authorized to retain estate tax out of the trust assets. |
Related Definitions
Articles Of Interest
-
Getting Started On Your Estate Plan
With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips. -
Refusing An Inheritance
Contrary to popular belief, inheriting assets isn't always a good thing. Find out what to do if you want to disclaim them. -
Get A Step Up With Credit Shelter Trusts
Don't let unexpected taxes eat away at your inheritance or burden your heirs. -
Special Trusts For Special Needs
If you or someone you love has a disability, these trusts can help ease the cost of care. -
Pick The Perfect Trust
Trusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter. -
How do I list the beneficiaries of my life insurance policies if I have a trust?
Because most states protect life insurance policies from creditors, most buyer questions come from the confusion created with ownership and beneficiary designations because of tax treatment. ... -
New Tax Rules Target The Top Tax Bracket
The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years. -
The Financial Fallout Of The DOMA Repeal For Same-Sex Couples
The recent Supreme Court decision to repeal the Defense of Marriage Act has paved the way for same-sex couples to enjoy the same federal benefits as opposite-sex couples. -
3 Financial Tasks We Think Are Harder Than They Really Are
Use these three tips to help put your financial situation into perspective. It turns out, organizing your finances isn't nearly as hard as you thought. -
Certifications For Estate Planning
These certifications can lead to a promising career, but is estate planning for you?
Free Annual Reports