BarbriSFCourseDetails

Course Details

This CLE/CPE webinar will provide estate planning advisers with a thorough and practical guide to the rules and structuring considerations for drafting qualified domestic trusts (QDOTs) for U.S. taxpayers with nonresident spouses. The panel will offer specific guidance on when to best employ QDOTs, discuss the risks and benefits of the trusts, detail trustee and withholding requirements, and provide precise drafting examples.

Faculty

Description

The estate tax exclusion amounts for U.S. taxpayers have changed the focus for most estate planners from estate tax avoidance to income and gift tax minimization. However, for U.S. taxpayers (or nonresident alien taxpayers with U.S. property) who have non-citizen spouses, estate tax planning remains a critical challenge. Estate planners and advisers to families with non-U.S. spouses must meet these challenges to avoid adverse tax consequences. For these taxpayers, a QDOT is often the only means of passing assets tax-free to non-citizen spouses.

There are various ways to structure a QDOT to benefit a non-citizen spouse. For a trust to qualify as a QDOT, the trust document must contain specific provisions addressing trustee requirements and withholding remittances on distributions to the non-citizen spouse, among other issues. Estate planning counsel must understand the components that must be part of a trust operating agreement for the trust to qualify as a QDOT.

Listen as our experienced panel provides a thorough and practical guide to QDOT strategies and structures, including sample language for critical provisions.

Outline

I. Estate tax exemptions for nonresidents

II. Terms of QDOTs

III. Withholding and trustee provisions

IV. Benefits and risks of QDOTs

V. Key structuring examples

Benefits

The panel will review these and other key issues:

  • What types of trusts qualify as QDOTs?
  • Structuring withholding provisions that will meet IRS requirements for QDOT designation
  • What specific trustee provisions and designations must a QDOT document contain to withstand IRS scrutiny?
  • Tax consequences and inclusions on death of U.S. spouse under various QDOT structures