Demystifying the QDOT in the Context of Cross-Border Estate Planning

Demystifying the QDOT in the Context of Cross-Border Estate Planning

Tax Law
By Anthony Diosdi U.S. federal law imposes a transfer tax upon the privilege of transferring property by gift, bequest, or inheritance. This transfer tax takes the form of an estate or gift tax. The tax is measured against a tax base that includes not only the assets of decedent’s probate estate, but also certain gifts by the decedent during life that are deemed to be the equivalent of testamentary transfers either because the decedent retained an interest or power over the gift. Items included in a decedent’s gross estate are reduced by other items to calculate the decedent’s taxable estate. The estate tax is currently ranging from 18% to 40%. United States citizens and residents receive a credit against the estate tax in the amount of $12,060,000 for the 2022…
Read More