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Financial Planning / Tax Strategies


Subject:  Re: Permanent Resident maried to US Citizen Tax Date:  2/10/2001  4:24 AM
Author:  jumpinjupiter Number:  46111 of 127519


You cited a QDOT, Qualified Domestic Trust.

My RLT (revocable living trust) invokes three trusts upon death of my wife or I :-
Trust A (the Survivor's trust)
Trust B (the Decedent's trust)
Trust C (the Qualified Terminable Interest Trust)

So my Trust C above sounds the same as the QDOT that you reference. Is a QTIT the same as a QDOT?

OK, so classic reaction after a death might be for the surviving spouse to leave the USA and return home.

As the principal in the QDOT does attract estate tax upon withdrawal what is an intelligent set of instructions to leave with my wife for most effectively managing to grow principal and derive income from the QDOT. (eg. leave it in the USA and draw income from it even while abroad; cash it out and settle the taxes as part of departure clearance procedures; modify the RLT to have the QDOT assets eventually transfer to surviving children who are US citizens; etc.)

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