Being married is great: you have someone who is obligated to laugh at your jokes, compliment you from time to time and who will binge watch TV shows on Sundays with you. Perhaps one of the best benefits from being married, however, is the Unlimited Marital Deduction. The Unlimited Marital Deduction allows for one spouse to transfer an unlimited amount of assets at any time free from tax. This means that whatever one spouse leaves to their surviving spouse at death will be transferred, tax free! This is great news for everyone! Well, almost everyone. Unfortunately, the marital deduction does not apply to noncitizen spouses. A noncitizen spouses will have to pay taxes just as anyone else who may inherit from the decedent. If your estate exceeds the federal exemption amount ($5.45 million) this can truly become a nightmare. Have no fear, there is a solution!
Enter the Qualified Domestic Trust, or QDOT Trust. A QDOT Trust is used for noncitizen spouses in this situation and provides relief by deferring the federal estate tax that would have been due at the time of their spouse’s death and, instead, leaves a large amount of money behind for their benefit. When the first spouse passes away, their assets will go into trust instead of directly to the surviving noncitizen spouse. While the noncitizen spouse will not own the assets they can enjoy benefits throughout the remainder of their life, such as any interest that the trust may generate. At their death the assets will then pass on to the other listed beneficiaries.
If this scenario seems familiar, then call (954)944-2855 for your free consultation today. Protect yourself and your family by providing ultimate peace of mind!
For more information on Estate Planning, Asset Protection and Probate please visit our website at www.wfplaw.com.
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