Question

Multiple Choice 2. Which of following are not required for a trust to qualify as a...

Multiple Choice

2. Which of following are not required for a trust to qualify as a QDOT

a. The trustee must be a US Citizen

b. The trustee must have enough US based assets to cover the estate tax

c. The trustee has the right to withhold estate tax on distributions

d. The trust beneficiary is a US Citizens  

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Answer #1

A qualifying domestic trust allows taxpayers who are not U.S citizens to claim the marital deduction for estate tax purposes.

so (D) The trust beneficiary is a US Citizens is false as spouses need not to be U.S citizens in order to claim QDOT deduction.

SO The correct option is D. The trust beneficiary is a US Citizens  

The trustee must be a US Citizen ,The trustee must have enough US based assets to cover the estate tax, and  the trustee has the right to withhold estate tax on distributions are required for a trust to qualify as a QDOT so statement A,B,C are required.

Option (D) The beneficiary is U.S citizens is not requird for a trust to qualify as a QDOT

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