Arizona and New Mexico Personal Residence Trust Attorney

If you own a valuable residence that you wish to protect from creditors and want to pass to your children or grandchildren in a tax-favored manner, a qualified personal residence trust (QPRT) may be your best solution. A Qualified Personal Residence Trusts is an irrevocable living trust that allows a homeowner to gift the personal residence at a value that is discounted for tax purposes. The gift can be set up to remove the home from the personal assets of the property owner to reduce estate taxes upon death and to protect the residence from creditors.

Internal Revenue Service rules regarding property values, percentage of ownership retained by the grantor and the length of terms for the trust are complex. Morris Hall, PLLC has the experience and knowledge of tax law and IRS regulations to help you set up a QPRT using every legal advantage and benefit to your estate. If you have a home of some value, talk to us about the benefits of a qualified personal residence trust. We will explain the current law regarding capital gains tradeoffs in language that will help you understand your options and decisions.

Does a qualified personal residence trusts involve a permanent transfer of property?

A QPRT is an irrevocable living trust, generally set up for a predetermined length of time. If the resident dies while living in the home, before the term of the trust ends, the property will revert to the original estate and estate taxes must be paid on the fair market value. If the resident lives until the expiration of the trust, the property will be distributed to the named beneficiaries and the full value of the home will be excluded from estate taxes. It is important to weigh all factors carefully when contemplating the use of a QPRT. Of course, there are many stipulations as part of setting up a successful QPRT. Our experienced attorneys will explain the criteria and benefits to your estate, as well as possible drawbacks that may arise under certain conditions. Morris Hall estate planning attorneys know the strategies and options that can help make a QPRT the best option for protecting your estate, while keeping you in your home. Because a QPRT is an irrevocable trust, it protects, against creditors of the grantors and the beneficiaries, while significantly reducing estate taxes.

Our membership in the exclusive American Academy of Estate Planning Attorneys gives you an edge over other law firms that don’t have AAEPA resources. Setting up a qualified personal residence trust requires knowledge of very specific rules. With licensed financial advisors and CPAs on the MH staff, you'll have confidence that we are getting your QPRT set up right. Nobody focuses on estate planning like we do.

Morris Hall Financial and Morris Hall Accounting Are Part of Our Services

Setting up a qualified personal residence trust requires an in-depth understanding of your complete financial picture. At Morris Hall, you have the advantage of working with experienced estate planning attorneys, as well as licensed financial planners and CPAs, who will help you develop a cohesive estate preservation plan that takes into account your family’s long-term goals and tax needs. You won’t have to worry that an independent financial planner or accountant might not coordinate his or her planning with your estate plan. You get the confidence of knowing that you are moving forward with a coordinated, integrated plan that covers all your best interests.

AAEPA • WealthCounsel • AV Rated* • CPAs • Licensed Financial Planners

Contact us to arrange a consultation with an experienced lawyer today. Our offices are located in Phoenix, Tucson, Albuquerque and communities throughout Arizona and New Mexico.

*Martindale-Hubbell’s AV peer review rating is the highest-rated category an attorney can achieve in the areas of legal skills and ethical standards. AV is a registered certification mark of Reed Elsevier Properties, Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies.