What Is a Qualified Personal Residence Trust?

In this first of a six-week "What Is?" series, I begin with what is a Qualified Personal Residence Trust? With skyrocketing home values of late, many of my client's largest asset is their home. The foreseeable estate tax landscape is uncertain, increasing the possibility that more Americans will have to deal with estate taxes at death. If you believe your current home will continue to appreciate over the next decade and you plan on owning it for at least ten to fifteen years, then you want to consider moving your home to a qualified personal residence trust (QPRT). In sum, moving your home into a QPRT will "lock" your home's current value. At the end of the trust term (usually between ten to twenty years), your home transfers to your heirs at the value the home was fifteen years ago, not at its future appreciated value. The trust is also magically written to allow you to live in the home up and until you either decide to leave, sell the home or later pass away. A QPRT is a great option for highly appreciating real estate like your personal residence or vacation home. #qualifiedpersonalresidencetrust #trusts #estateplanning #realestate #vacationhomes
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