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Qualified Domestic Trust Agreement This Trust Agreement, hereinafter called the Agreement, dated (date), between (Name of Grantor) of (street address, city, county, state, zip code), hereinafter called.

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This is called "making a QDOT election" and is irrevocable. The return must be filed nine months after the death. The surviving spouse is entitled to receive any income earned by trust assets, and typically, all income is distributed to the survivor at least annually.

A QTIP (qualified terminable interest property) is a special kind of trust that allows married people to control distribution of assets to their spouses while still taking advantage of the marital deduction. A QDOT allows the same, but is usually used by couples that have one U.S. citizen and one non-citizen spouse.

If the property transferred to the QDOT is less than $2 million, then no more than 35% of the trust property (determined annually on the last day of the trust's tax year) can consist of foreign real property. If it does, then the rules applying to a QDOT greater than $2 million will apply.

A large QDOT requires: At least one of the trustees must be a U.S. bank or a trust company; or. The U.S. trustee (an individual trustee) must furnish a bond or letter of credit equal to 65 percent of the fair market value of the assets in the trust.

Requirements for a QDOT The terms of a QDOT should provide that all income is distributable to the surviving non-citizen spouse. The trustee of the QDOT must be a citizen of the United States.

A qualified domestic trust (QDOT) allows a non-citizen surviving spouse of a deceased taxpayer to take advantage of the marital deduction on estate tax for any assets that are placed into the trust before the death of the decedent.

Purpose: The purpose of a Qualified Domestic Trust (known as a QDT or QDOT) is to preserve the marital deduction when the surviving spouse is not a United States citizen and whose assets are likely to be subject to the federal estate tax if the marital deduction is not available.

What Is an Example of a QDOT Trust? For example, if the tax bill on your estate amounts to $15 million upon your death, a QDOT prevents that $15 million from immediately going to the government when your estate tax return is filed.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232