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Qualified Domestic Trust

What is a Qualified Domestic Trust?

A Qualified Domestic Trust (QDOT) is a type of trust designed to protect non-citizen surviving spouses from Estate Taxes. Taxes apply on spouse transfers property to another, even in the event of death or co-owned property. The government provides an unlimited deduction for married citizen couples on the transfer of property, unless one spouse is a non-citizen. To overcome this potential hardship for non-citizen surviving spouses, the government created the QDOT.

Individuals must meet the following requirements for a QDOT to qualify:
1. At least one trustee must be either a U.S. citizen or a domestic corporation.
2. No distributions can be made from the trust unless the trustee has the right to withhold the tax due on the distribution.
3. The QDOT election must be made by the executor of the estate on the deceased spouse’s (decedent) estate tax return.
The spouse may still become responsible for taxes when a taxable event occurs. Special requirements apply to assets greater than $2 Million dollars.

What is a taxable event?
A taxable event includes moving money or property out of the QDOT before the surviving spouse passes, or the death of the surviving spouse. Taxes may be exempted if the money is a distribution of income or made on account of hardship.
What is a hardship in this case?
The government considers a hardship to be an immediate financial need. In this case, the need may be that of the surviving spouse or that spouse’s legal dependents. This is an important point, as needs include maintenance, health, education, or support.

How do I start a QDOT?

As a citizen spouse with a non-citizen spouse, you want to protect the surviving spouse after death. As a surviving spouse, you want to protect your inherited assets and co-owned assets. Eileen Kerlin Walsh P.C. and Associates are here to guide you through the process. We are happy to work with your current financial planner or accountant, or refer you to one. Please call 708-448-5169 to schedule a consultation.

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Brilliant, Genuine, Caring, Experienced, detailed oriented and more... That describes Eileen Kerlin Walsh

Miguel Ellis Chicago, IL 4/29/2016

2016-04-29T17:33:08+00:00
Brilliant, Genuine, Caring, Experienced, detailed oriented and more... That describes Eileen Kerlin Walsh Miguel Ellis Chicago, IL 4/29/2016

My sister referred me to Kerlin Walsh Law; this is the second time using them. Kerlin Walsh Law have fair rates. They are professional, possess good time management and communicate well - they ask questions and also provide answers. They have good follow up; during the process I did receive a phone call informing me on the happenings. I did get the verdict I was looking for. I would use Kerlin Walsh Law again.

Cecelia P. Chicago, IL 3/18/2016

2016-03-22T09:53:15+00:00
My sister referred me to Kerlin Walsh Law; this is the second time using them. Kerlin Walsh Law have fair rates. They are professional, possess good time management and communicate well - they ask questions and also provide answers. They have good follow up; during the process I did receive a phone call informing me on the happenings. I did get the verdict I was looking for. I would use Kerlin Walsh Law again. Cecelia P. Chicago, IL 3/18/2016

Harvard Magazine in 2010 revealed that two critical variables account for 80% of our overall judgment of others; warmth and competence. Eileen Kerlin Walsh exudes a perfect blend of these traits. Whether she is finalizing a Trust, conducting a seminar or delivering a law lecture, she possesses the broad base of knowledge and the warm human touch that make her the consummate professional.

Kamp, Chicago, IL

2016-03-22T10:03:17+00:00
Harvard Magazine in 2010 revealed that two critical variables account for 80% of our overall judgment of others; warmth and competence. Eileen Kerlin Walsh exudes a perfect blend of these traits. Whether she is finalizing a Trust, conducting a seminar or delivering a law lecture, she possesses the broad base of knowledge and the warm human touch that make her the consummate professional. Kamp, Chicago, IL