A few years ago, Arizona accounting firm BeachFleischman helped a Tucson couple structure specialized trusts for both a primary residence and a California vacation home. Qualified personal residence trusts, or QPRTs, hold properties that can be transferred at a discounted value to children after a specified period of time. This both reduces the gift tax and removes the property from the estate.
In this case, the two residences, worth a total of $4.3 million in 2009, can be transferred via the trust at a taxable gift value of less than $1.2 million in fiscal year 2027-28. How does that math work? There are federally allowed discounts including, in this case, one for 2.8% a year, for property held jointly in a 19-year trust for the husband and an 18-year trust for the wife. “It’s pretty powerful,” says Mary Yaconiello, the senior tax manager who guided the agreement.
Arthur H. Geffen
Attorney & Counselor at Law
1620 East Beltline Road
Carrollton, TX 75006
972-242-8887
972-446-7976 fax
https://www.dallasestateattorney.com
Business Organizations, Tax, Estates & Trusts, Probate
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