Tuesday, March 24, 2015
The estate tax on a deceased spouse's estate can be burdensome for a surviving non-U.S. citizen spouse as the unlimited marital deduction will not apply. A Qualified Domestic Trust (QDOT) can help by deferring the estate tax liability, but limits accessibility of the funds for the non-U.S. citizen spouse. Another option is a life insurance policy, which can assist the surviving spouse with paying the estate tax, but will be counted as an asset in the estate.
See Mike Thaxton, 2 Ways to Help Protect Non-U.S. Spouses From Estate Tax Liability, Life Health Pro, March 17, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
https://lawprofessors.typepad.com/trusts_estates_prof/2015/03/providing-for-a-surviving-non-us-citizen-spouse.html
Estate Planning - Generally, Estate Tax, Non-Probate Assets, Trusts | Permalink
