Ask About Personal Residence Trusts

Published Tuesday, October 24, 2017 at: 7:00 AM EDT

By using a qualified personal residence trust (QPRT), you might be able to sidestep potential estate tax pitfalls while transferring a home to family members. You can continue to live in the home for a term of years, after which ownership passes from the trust to the designated beneficiaries. Your gift of the home to the trust is taxable, but rather than being based on the home's value when it goes into the trust, that value is reduced by the amount of your "retained interest," which is calculated according to a complicated formula based on interest rates, the term of...

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This article was written by a professional financial journalist for new michael mcdonald and is not intended as legal or investment advice.

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