
Among the leading legal tools for passing wealth down through generations is the QPRT. A qualified personal residence trust, or QPRT (“Q-pert”) is a form of irrevocable trust to pass a home to beneficiaries.
The QPRT effects an immediate conveyance of the house to the trust. Nevertheless, the homeowner who establishes the trust (called the grantor) continues to pay all related taxes, and continues to receive any associated tax deductions, for a specified time. Indeed, the grantor may live in the home rent-free, based on what’s termed a qualified term interest,until the specified time when the house transfers to its beneficiary.
Your home might be modest, yet it could still be subject to federal or state estate tax together with the rest of your assets when you pass on. This is especially so when government administrations set lower thresholds for the minimum amount of a taxable estate.
Continue reading “QPRT: Pertinent to Your Estate Planning Goals?”