Personal residence trusts are used to transfer a grantors residence out of the grantors estate at a low gift tax value. Once the trust is funded with the grantors residence, the residence and any future appreciation of the residence is excluded from grantors estate. This type of trust is an irrevocable split interest trusts. The transfer of the residence to the trust constitutes a completed gift. The split interest character of the trust is as follows: the grantor retains the right to live in the house for a number of years, rent free, and then the remainder beneficiaries of the trust become fully vested in their interest.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Connecticut Personal Residence Trust (CART) is a legal arrangement used by Connecticut residents to protect their residences and reduce estate taxes. CART is specifically designed for homeowners who have significant equity in their primary residences and wish to transfer them to their beneficiaries while minimizing estate taxes. Through a CART, the homeowner places their primary residence into an irrevocable trust, which removes the property from their estate for tax purposes. This ensures that the value of the residence will not be subject to estate taxes upon the homeowner's death. The homeowner retains the right to live in the residence for a predetermined period, often referred to as the "retained interest term." Carts offer several benefits, including tax reduction, asset protection, and flexibility in estate planning. By transferring the residence to the trust, the homeowner effectively freezes its value for estate tax purposes, potentially saving a significant amount of money for their beneficiaries. Additionally, the trust shields the property from creditors and lawsuits, preserving it for the intended beneficiaries. There are two main types of Connecticut Personal Residence Trust: Granter Retained Interest Trust (GRIT) and Qualified Personnel Residence Trust (PRT). 1. Granter Retained Interest Trust (GRIT): In a GRIT, the homeowner transfers the residence to an irrevocable trust, retaining the right to live in the property for a specific period. At the end of the retained interest term, the property passes to the designated beneficiaries. If the homeowner dies during the retained interest term, the residence is included in their estate for tax purposes. 2. Qualified Personnel Residence Trust (PRT): Parts are another type of CART where the homeowner transfers the residence to an irrevocable trust, retain the right to live in the property for a predetermined period. Once this period ends, the property is transferred to the beneficiaries without any estate tax implications. However, if the homeowner dies during the retained interest term, a portion of the residence may still be included in their estate for tax purposes. Connecticut Personal Residence Trusts offer homeowners a valuable strategy to minimize estate taxes, protect their primary residences, and efficiently plan their estates. Consulting with a knowledgeable estate planning attorney is highly recommended determining the most suitable option and navigate the complexities of trust creation.Connecticut Personal Residence Trust (CART) is a legal arrangement used by Connecticut residents to protect their residences and reduce estate taxes. CART is specifically designed for homeowners who have significant equity in their primary residences and wish to transfer them to their beneficiaries while minimizing estate taxes. Through a CART, the homeowner places their primary residence into an irrevocable trust, which removes the property from their estate for tax purposes. This ensures that the value of the residence will not be subject to estate taxes upon the homeowner's death. The homeowner retains the right to live in the residence for a predetermined period, often referred to as the "retained interest term." Carts offer several benefits, including tax reduction, asset protection, and flexibility in estate planning. By transferring the residence to the trust, the homeowner effectively freezes its value for estate tax purposes, potentially saving a significant amount of money for their beneficiaries. Additionally, the trust shields the property from creditors and lawsuits, preserving it for the intended beneficiaries. There are two main types of Connecticut Personal Residence Trust: Granter Retained Interest Trust (GRIT) and Qualified Personnel Residence Trust (PRT). 1. Granter Retained Interest Trust (GRIT): In a GRIT, the homeowner transfers the residence to an irrevocable trust, retaining the right to live in the property for a specific period. At the end of the retained interest term, the property passes to the designated beneficiaries. If the homeowner dies during the retained interest term, the residence is included in their estate for tax purposes. 2. Qualified Personnel Residence Trust (PRT): Parts are another type of CART where the homeowner transfers the residence to an irrevocable trust, retain the right to live in the property for a predetermined period. Once this period ends, the property is transferred to the beneficiaries without any estate tax implications. However, if the homeowner dies during the retained interest term, a portion of the residence may still be included in their estate for tax purposes. Connecticut Personal Residence Trusts offer homeowners a valuable strategy to minimize estate taxes, protect their primary residences, and efficiently plan their estates. Consulting with a knowledgeable estate planning attorney is highly recommended determining the most suitable option and navigate the complexities of trust creation.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
