Last Will and Testament

At predeceasing spouse’s death (U.S. citizen)

Family Trust

Receives the maximum applicable exclusion amount ($11.18 million in 2018). Assets are held for the benefit of the surviving spouse and the children. These assets will not be subject to estate tax at the surviving spouse’s death.

QDOT Marital Trust(for Non-U.S. Citizen Spouse)

The balance of the estate will be distributed to the trustee of a Qualified Domestic Trust established for the surviving spouse’s sole benefit. As principal distributions are made from this trust (other than hardship distributions), estate tax will be paid on the withdrawn amounts.

At surviving spouse’s death (non-U.S. citizen)

Separate Trusts For Children

Upon the surviving spouse’s death, after payment of estate taxes on the QDOT Marital Trust, the remaining assets are divided into equal shares for the children. The share for each child will be held in a separate trust for the child’s benefit. Distributions may be made for needs such as the down payment on a home, education, health, etc. The trust may continue for the child’s lifetime or end when the child reaches a specific age chosen by the client.

At each child’s death, his or her separate trust will divide equally among his or her living descendants. Each remote descendant’s share may continue for his or her lifetime or end when the descendant attains a specific age chosen by the client.