Austin Estate Planning Lawyer

Qualified Personal Residence Trust

As the troubled economy sees no upturn any time soon, many senior homeowners are figuring out a way to give their property to their children and receiving large savings on gift and estate taxes. They are achieving this by moving their home out of their estate. This maneuver is referred to as a qualified personal residence trust (QPRT).

What Does it Do?

A QPRT allows homeowners to live in a property for many years before passing it on to their heirs. These types of trusts have been around for years. However, due to falling real estate values in several markets, now is an optimal time to set up a QPRT.

Why Do it?

The goal behind setting up at QPRT is to put assets into trusts now and reap benefits from their appreciation outside of your estate. By executing a QPRT you are ensuring that your estate will not contain a more expensive home later on, which might trigger a costly tax bill for your estate.

How it Helps You

It is a good idea to transfer your home into a QPRT when its value is at a probably low point. This effectively locks in a lower gift-tax amount when you move the home into the trust. Should interest rates increase in the months ahead, that discount could be even greater because of the special formula that the IRS uses to compute the home’s gift-tax value.

Contact an Austin Probate Lawyer

An Austin probate attorney can explain your legal options and help you decide which estate planning strategy is best for you. Contact the Austin estate planning lawyers of Slater, Kennon, & Jameson at 512-338-1100.