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What Is a Qualified Domestic Trust

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If you are a high net worth individual, you should explore estate tax efficiency strategies. Learn more about qualified domestic trust in this presentation.

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What Is a Qualified Domestic Trust

  1. 1. Is a Qualified Domestic Trust?
  2. 2. There is a federal estate tax in the United States MA13I; < EGHRARI Elder Law and Estate Planning
  3. 3. It is potentially applicable on large asset transfers MA13I§ EGHRARI Elder Law and Estate Planning
  4. 4. The tax can have a heavy impact, because lt carries a maximum rate of 40 percent MA13I; < EGHRARI Elder Law and Estate Planning
  5. 5. . NH /4
  6. 6. The amount of the federal estate tax exclusion is $5.34 MILLION IN 2014 L. l’1|<i Ul- MARK S. EGHRARI & / .<: ( I ll, ' P! l(
  7. 7. This is the amount that you could transfer free of taxation MA13I; < EGHRARI Elder Law and Estate Planning
  8. 8. Anything that you want to transfer that exceeds this amount is potentially subject to the federal estate tax L. l“II<I l)l MARK S. EGHRARI & A. «: ( I ll' P! l(
  9. 9. "«l 1 ‘ . .; _ 3 I ‘I - c l ' I ‘ . : .
  10. 10. There Is an unlimited marItal estate MA13I; < EGHRARI Elder Law and Estate Planning
  11. 11. This allows you to leave unlimited resources to your spouse free of taxation, if your spouse is a United States citizen MA13I§ EGHRARI Elder Law and Estate Planning
  12. 12. You do not have to use any of your $5.34 million exclusion to leave a tax-free bequest to your spouse MAI3I§ EGHRARI Elder Law and Estate Planning
  13. 13. Non-Citizen Spouses
  14. 14. The unlimited marital deduction is not available to a non= citizen spouse MAI3I; < EGHRARI Elder Law and Estate Planning
  15. 15. There is however an estate planning solution if you are married to a citizen of another country MAB1§ EGHRARI Elder Law and Estate Planning
  16. 16. Qualified Domestic Trusts
  17. 17. If you are married to a non-citizen, you could make your spouse the beneficiary of a qualified domestic trust MAI3I§ EGHRARI Elder Law and Estate Planning
  18. 18. During the term of the trust, the ESTATE TAX would not be applicable L. l’II<I Ul- MARK S. EGHRARI & / .<: ( I ll, ' III I(
  19. 19. The trustee could distribute earnings from the trust to your spouse throughout hs or her life MAI3I; < EGHRARI Elder Law and Estate Planning
  20. 20. _t These distributions ’ I ’ ' would be subject to 7 income taxes, but , the estate tax would 4 not be levied
  21. 21. Under some circumstances, the trustee may distribute a portion of the principal MA13I§S§EGHRARI Elder Law and Estate Planning
  22. 22. HOWEVER, any distributions of the principal would be subject to the estate tax L. l’II<I Ul- MARK S. EGHRARI & / .<: ( I ll, ' III I(
  23. 23. If you are a high net worth individual, you should explore estate tax efficiency strategies MARK S. EGHRARI Elder Law and Estate P/ mm! ‘/Ig
  24. 24. Our firm offers free consultations to people in and around Smithtown, New York. Contact us to set up an appointment L. l’II<I Ul- MARK S. EGHRARI & / .<: ( I ll, ' III I( Elder Law unzl Estate Planning
  25. 25. A Leam More About Tax Efficiency Strategies l I . I) “ I
  26. 26. Click to visit myestatep| an. com :3- , l ". l1iL. l Hi MARK S. EGHRARI Contact Information 50 Karl Avenue, Suite 202 Smithtown, NY 11787 (631) 265-0599 Website www. myestatep| an. com

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