Have you ever heard of a QPRT? If you answered no, you're probably not alone. That's because the use of QPRTs, which are Qualified Personal Residence Trusts, have fallen out of favor, explains an article in Accounting Today. This means that fewer people are using them across the nation, including here in Florida. But just because people aren't using them doesn't mean they aren't incredibly useful to people looking to bolster their estate plan.
For those of our Melbourne readers who don't know, QPRTs are a way for a testator to transfer the ownership of their home to another beneficiary, such as their children, "at the lowest possible tax cost." And because a QRPT allows the homeowner to continue to live in the home despite the transfer of ownership, it may be an incredibly good option for anyone looking to make estate administration an easier process for their loved ones after they're gone.
Just like any other trust though, QPRTs are not exactly self-explanatory to the average person. These types of trusts are governed by a complex set of laws that can leave anyone without a legal background confused and unsure of how to proceed. That having been said, speaking with a good estate planning attorney is considered a very good idea for anyone considering a QPRT for their own home.
It's worth pointing out at this moment though that a QPRT is not for everyone. Discussing this type of trust with your lawyer will give you a better idea of whether or not you should go with this type of estate planning maneuver or if a better option exists for you.