For a nonresident noncitizen surviving spouse, what must be established to qualify for the marital deduction?

To qualify for the marital deduction for a nonresident noncitizen surviving spouse, the specific requirement is to establish a Qualified Domestic Trust (QDOT). A QDOT allows assets to be transferred to a noncitizen spouse while deferring the estate taxes that would generally be due upon transfer to a noncitizen. This is crucial because the marital deduction is generally available for transfers to a spouse, but it is restricted when the spouse is a noncitizen.

The QDOT functions by ensuring that if the noncitizen spouse receives assets from the estate, those assets are held in a trust that meets certain IRS criteria. This ensures that the U.S. government can collect any necessary estate taxes upon the death of the noncitizen spouse or when the QDOT trust is terminated, which provides security to the IRS that taxes will be collected properly.

Establishing a QTIP Trust or a GRAT is not applicable in this context because these vehicles do not specifically cater to the unique needs of a noncitizen spouse concerning the marital deduction. A Life Estate Trust does not address the tax implications for a noncitizen spouse either. Thus, the QDOT is a specific solution designed for this situation, making it the correct choice to enable the marital deduction for