Personal Residential Trust Attorney
When a significant portion of your estate is comprised of your real property, it is vital to move your primary residence into an irrevocable trust, which will allow you to save a significant amount of money in estate taxes.
This process is referred to as The Qualified Personal Residence Trust (QPRT), which is designed to freeze the assets of your house, thereby eliminating estate taxes that would normally apply to increasing property value taxes over time.
When creating this type of trust, an estate-planning attorney will help you decide who the initial trustee will be, who the successor trustees will be, and will guide you on deciding how long you wish to remain in said residence before the house passes on to beneficiaries via the trust document.
Once the trust is established, you can transfer the ownership of the said residence into the trust. You must then get an appraisal of the house by a licensed appraiser on the date that it is transferred to the trust itself. Then, you can file with the IRS to make sure your transfer is qualified as a gift to the beneficiaries of the trust. One requirement for a QPRT is that you must outlive the term of the trust, since it is irrevocable and changes or provisions cannot be altered at a later date.
There are certain advantages and disadvantages to a Qualified Personal Residence Trust, which can be discussed with a well-versed estate-planning lawyer at Citadel Law Corporation. Call (800) 662-0882 today to find out if creating a QPRT is right for you and your family.