Phoenixville Estate Planning Lawyer Makes Estate Planning Stress-Free
With a qualified personal residence trust, Pennsylvania homeowners can transfer property to their children before death and still retain the right to use it for a specified period of time. One substantial benefit that a Phoenixville estate planning lawyer can explain, the tax rate applied to the residence’s current value is “frozen,” which cuts down estate and gift taxes dramatically, especially when property appreciates.
Pennsylvania residents may contact a Phoenixville estate planning lawyer if they want to see if this advantageous tax-saving trust is an option for them. Because this trust is so beneficial for taxpayers, there are very specific requirements in place, which a lawyer can discuss with you.
If you’re planning your estate, and think you may want to set up a qualified personal residence trust, Pennsylvania has some requirements you’ll have to fulfill:
- property must be a personal residence;
- property must be jointly owned; and
- land and mortgage may be included.
Not only are there additional regulations you must follow to create a QPRT, there are also risks. Perhaps the biggest one is the length of your term’s interest.
It is in your best interests to make this term much shorter than your life expectancy, because if you pass away before the term ends, the property’s full value will be used for taxation purposes, which essentially renders a QPRT useless.
You’ll want to talk with your estate planning lawyer about these concerns, because if a QPRT is not set up correctly, your careful planning could backfire.
Phoenixville Residents with Estate Planning Needs Turn to Our Lawyers
Unruh, Turner, Burke and Frees, attorneys at law, have been serving the Phoenixville area since 1990. Regardless of your Pennsylvania estate planning needs, our team has the experience and commitment to build a long-lasting, trusted relationship with each and every one of our clients. Also serving Malvern and Chester county, our diverse team handles cases involving municipal law, litigation, commercial transactions, bankruptcy, real estate, taxation, zoning and more. Contact Dave Frees or one of our other experienced lawyers today at 610-933-8069 for a consultation.
