Friday, May 29, 2015
The dismal real estate market is starting to recover from the 2008 financial crises and the Qualified Personal Interest Trust (QPRT) is making a comeback. If done right a QPRT would allow a person to live in their home with a life estate while being able to transfer the house to a loved one at the lowest possible tax cost. The Grantor should be careful about selecting the term of years that the trust will have. Clients should be advised to select a term that they expect to outlive, but it should not be too short because that would bring about a lower wealth transfer. Any person considering a QPRT should speak with an experienced estate planning attorney.
See Kyle E. Krull, Reconsidering the venerable QPRT?, Wealth Management, May 28, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.