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QDOT

What is a QDOT?

A QDOT is used when a US Citizen is married to a non-US Citizen. The Qualified Domestic Trust is designed to hold all or some of the US Citizen’s wealth to avoid or delay the Federal Estate Tax.

What is the Purpose of a QDOT?

Because Congress is worried that a non-US Citizen spouse will attempt to move assets overseas to avoid the Federal Estate Tax, a non-US Citizen spouse is not given an unlimited spousal exemption. This means the US Citizen Spouse’s death a tax might be due. Congress did spell out how the tax can be avoided or delayed, and a QDOT adopts those terms.

Typical Estate Questions About QDOTs:

Here are some questions clients, beneficiaries, and Trustees ask

Is the qualified domestic trust mandatory if my spouse is a non-US citizen?

A QDOT is not necessary, but without a QDOT your estate may pay Estate Tax at an accelerated rate. The QDOT is designed to defer the tax.

Can I create an ordinary trust if my spouse is a non-US citizen?

Yes, a QDOT is a tool that can be used if it is the right fit. Other trusts might be a better fit. An examination of your assets and an understanding of your particular goals I can advise you about the pros and cons of various trusts.

Under what circumstances would my non-US citizen spouse have to pay the Federal Estate Tax?

If your estate exceeds the Federal Estate Tax Exemption, then a tax is due at your death. A QDOT can help delay, or even avoid, the tax.

How can the Federal Estate Tax be Delayed for my Non-US Citizen Spouse?

A QDOT is an excellent tool, but other instruments such as an ILIT may also help. The best plan will depend on your particular assets and your goals.

How can the Federal Estate Tax be Avoided for my Non-US Citizen Spouse?

The best plan will depend on your unique goals and particular assets. Many tools are available, including the QDOT. Only a review of your goals and assets can determine the best plan.

Reasonable Prices | Years of Experience | We Make Trusts and Estate Planning Easier

If you have any questions about Qualified Domestic Trusts or any other estate planning topics, please contact us to schedule a free consultation. For more than two decades Klenk Law has focused only on Estate Law. We’ve seen it all, and this experience allows us to explain complex estate law and planning techniques clearly and concisely. We make it easy for you to understand QDOTs so you can make the best decisions for yourself and your family.

What Our clients are saying

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CHARLES TOLL

Excellent, knowledgeable team handled a complicated issue with superb results.

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Mr. Klenk has been easy to work with. I am confident he has given me good advice whenever I have called upon him. He has shown good work ethic and depth of knowledge in preparation of estate, wills, and trusts that I have worked with him on.

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Peter J. Gutekunst, CFP®

I've worked with and known Peter Klenk and his associates for years. They are highly professional, diligent and truly experts in their field. By focusing on just wills, trusts, and estates, Klenk law has experienced every angle of estate planning and applied that knowledge to help prepare our clients with thorough and comprehensive documents.

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Bill

I met Peter soon after he started his practice in Philadelphia, PA. He and his team have always been there for me and my various inquiries throughout my life-changing events, corporate relocations. I have lived in various cities throughout the nation, I have never had a problem in contacting Peter or a member of his team. He and his office responds quickly and returns calls to me to fulfill my requests for information or to revise my estate needs while posing relevant thought-provoking questions that I need to consider to secure my future. One of Peter's best qualities is his ability to answer clients complicated questions in a simple way to ensure comprehension.

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Stars

Klenk Law is an exceptional practice. Their fine lawyers and staff team up to produce excellent results for their clients. They excel at explaining the often cryptic laws and policies that govern estate planning right down to the complexities of the various "trust" frameworks. Peter himself manages each client together with his great team, and he has a rare quality to be both a walking encyclopedia of planning minutia and also one of the most likable lawyers I have ever had the pleasure of dealing with. He is truly generous in intellect and in his personal approach to getting the "big picture" for complex family structures. I trust him implicitly to help me make the right choices for the future. In short, Klenk Law is a gem of a firm.

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