Qualified Domestic Trust (QDOT) Template

What Is the Qualified Domestic Trust?

A QDOT is a special trust required when a U.S. citizen is married to a noncitizen. Federal law allows unlimited asset transfers between spouses tax-free at death, but only if the surviving spouse is a U.S. citizen. When your spouse is not a citizen, Congress requires a QDOT to ensure the IRS eventually collects estate taxes.

The trust is funded at your death with assets that would otherwise pass directly to your spouse. Your spouse receives all income from the trust, and principal distributions are permitted for hardship. A U.S. trustee manages the assets and handles required tax filings. When your spouse dies or receives principal distributions, estate taxes get paid. This structure defers estate taxation while protecting your spouse's access to needed funds.

 

 

Is This Qualified Domestic Trust Right for You?

You need this agreement if you're:

• A U.S. citizen married to a noncitizen spouse
• Planning to leave substantial assets to your noncitizen spouse
• Wanting to defer estate taxes until your spouse's death
• Needing to provide income and support for your noncitizen spouse
• Coordinating with other estate planning documents and trusts
• Ensuring your executor can make proper tax elections

You definitely need this agreement if:

• Your estate exceeds the federal exemption amount
• Your spouse isn't pursuing U.S. citizenship before your death
• You're leaving property directly to your noncitizen spouse without QDOT protection
• Your current estate plan doesn't address noncitizen spouse issues
• Your executor lacks clear instructions for QDOT funding and election

 

 

Why Thousands Trust Legal GPS Templates

Save Money: Estate planning attorneys charge $3,500-$8,000 for qualified domestic trust agreements. This template costs $35.

Save Time: Download instantly and complete in under two hours instead of scheduling multiple attorney consultations over months.

Look Professional: IRS-compliant language and proper trust structure that executors and tax authorities will accept.

Keeps You Out of Court: Comprehensive provisions covering required U.S. trustee, security arrangements, hardship distribution standards, tax withholding procedures, and Form 706-QDT filing requirements prevent disqualification and ensure proper tax deferral.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout

Complete your purchase through our encrypted payment system. Your template downloads immediately.

Step 2: Instant Download

Receive your qualified domestic trust template in Microsoft Word format. Open it in Word or Google Docs.

Step 3: Fill In the Highlighted Fields

Follow the bracketed guidance to select required U.S. trustee, establish security arrangements, customize distribution standards, and coordinate with your overall estate plan. Sign before a notary and coordinate with your executor.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. Once you purchase this template, you can use it for your own estate planning and modify it as circumstances change. Each purchase includes lifetime access to the template file.

Is this contract legally binding?

Yes. This qualified domestic trust agreement uses IRS-compliant language and includes all provisions required for QDOT qualification and marital deduction eligibility. Tax authorities, executors, and financial institutions will recognize its validity when properly executed and funded.

What if my spouse becomes a U.S. citizen after I create this trust?

The template includes three options for handling naturalization: immediate trust termination and distribution, continuation with relaxed restrictions, or no change in administration. You choose which approach fits your planning goals. If your spouse becomes a citizen before you die, the QDOT becomes unnecessary and you can use standard marital deduction planning instead.

How is a QDOT different from a regular marital trust?

A QDOT requires a U.S. citizen or corporate trustee, mandates annual tax filings, restricts principal distributions to hardship situations, and requires estate tax withholding on distributions. These requirements don't apply to trusts for U.S. citizen spouses. The restrictions exist because the IRS needs assurance that estate taxes will eventually be paid when assets pass to a noncitizen who might leave the country.

Do I need a corporate trustee or can a family member serve?

Either option works if the trustee is a U.S. citizen. However, QDOT administration is complex and creates potential tax liability for the trustee. Many estate planning professionals recommend corporate trustees for QDOTs over $2 million or when the required security arrangements become burdensome. The template includes provisions for individual trustees, corporate trustees, or co-trustees depending on your preference.

Can my spouse access principal from the QDOT or only income?

Your spouse receives all trust income at least annually. Principal distributions are permitted only for hardship situations where your spouse has an immediate and substantial financial need after considering other available resources. This restrictive standard exists because principal distributions trigger immediate estate tax withholding. The trust should be coordinated with other assets that provide your spouse adequate liquidity for normal needs.