Qualified Domestic Trust (QDOT) Legal Meaning and Definition

Here is a simplified definition of the legal term Qualified Domestic Trust (QDOT).

Qualified Domestic Trust (QDOT) (n) - A specific type of trust agreement established by an individual (trustor) before death. Its main purpose is to protect the financial interests of a surviving spouse who is not a U.S. citizen. In a QDOT, the trustor transfers property or assets into the trust and names their non-citizen spouse as the beneficiary. After the trustor's death, the trust provides for the spouse, altering the way estate taxes are applied. This type of trust ensures that the estate will not be heavily taxed just because the surviving spouse is not a citizen.