What is a QDOT and why might a non-citizen spouse need one?

A QDOT (qualified domestic trust) lets a U.S. citizen leave assets to a non-citizen spouse while preserving estate tax deferral. Normally, transfers between spouses are unlimited and estate-tax-free thanks to the marital deduction – but that deduction does not apply when the surviving spouse isn't a U.S. citizen, because the IRS worries they could leave the country with untaxed wealth. Without planning, a wealthy estate could owe federal estate tax at the first spouse's death. A QDOT solves this: assets pass into the trust, the non-citizen spouse receives income for life, and estate tax is deferred until the principal is distributed or the spouse dies. The spouse can also avoid this by becoming a U.S. citizen before the estate tax return is due. This matters mainly for larger estates with a non-citizen spouse. See wealthserene.com/for/immigrant-nri.