estate planning, QDOT allows to defer estate tax if surviving spouse is non-US citizen, does C Trust (QTIP) have similar benefits and what are differences betweend QTIP and QDOT.
2006-10-14 02:19:01 · 0 answers · asked by Gerry H 1 in Business & Finance ➔ Taxes ➔ United States
QTIP is Qualified Terminable Interest Property
QDOT is Qualified Domestic Trust
The difference is that QTIP has interest that is accumulated for any income earned after the trust was established. This allows you to differ any income tax to when the trust expires given that you amortize the interest over the life of the trust with equal annuity payments that are made by the trustee.
In a QDOT this is not the case and the only amount that is exempt is anything given as a qualified gift
This could all change if the death tax is abolished by the next congress...
2006-10-15 08:50:13 · answer #1 · answered by more_evil_then_santa 6 · 0⤊ 0⤋