Establishing a Qualified Personal Residence Trust (QPRT) involves transferring the residence to a trust that names the persons who are to receive the residence at the end of the stated term, usually a child or children of the donor. The donor is the tr A Georgia Qualified Personnel Residence Trust (PRT) is a type of trust established by Georgia residents for the purpose of minimizing estate taxes while retaining the right to live in their primary residence for a specified period. This irrevocable trust allows individuals to transfer their home or other residential property to the trust while still maintaining the ability to reside in it for a predetermined number of years. At the end of the specified term, the property is transferred to the designated beneficiaries, typically the trust creator's children or other family members. Georgia Parts can be a beneficial estate planning tool for individuals with valuable homes or properties, as they can help reduce the taxable value of the estate. By transferring ownership of the residence into the trust, the value of the property is effectively frozen at the time of transfer, potentially allowing for a substantial reduction in estate taxes upon the creator's passing. It is important to note that Georgia Parts have specific requirements and limitations. Firstly, the trust creator must survive the predetermined term in order to remove the property from their taxable estate. If they do not outlive the specified period, the property may be included in their estate for tax purposes. Additionally, while residing in the property after its transfer to the trust, the trust creator must pay rent to the trust at a fair market rate. This rental income is considered a taxable gift to the beneficiaries of the trust. There are various types of Georgia Parts available, depending on the specific goals and circumstances of the trust creator: 1. Standard PRT: This is the most common type of PRT, where the trust creator transfers the residential property to the trust for a specified term and retains the right to live in it during that period. At the end of the term, the property passes to the beneficiaries. 2. Granter Retained Annuity Trust (GREAT): In a GREAT, the trust creator transfers the property to the trust, but instead of retaining the right to live in it, they receive a fixed annuity payment for the specified term. At the end of the term, the property passes to the beneficiaries. 3. Granter Retained Unit rust (GUT): Similar to a GREAT, a GUT allows the trust creator to transfer the property to the trust and receive annual income from it in the form of a percentage of the property's value. At the end of the term, the property passes to the beneficiaries. Each type of Georgia PRT has its own advantages and considerations. Consulting with an experienced estate planning attorney is crucial to determine which type of PRT is most suitable based on individual circumstances and objectives.
A Georgia Qualified Personnel Residence Trust (PRT) is a type of trust established by Georgia residents for the purpose of minimizing estate taxes while retaining the right to live in their primary residence for a specified period. This irrevocable trust allows individuals to transfer their home or other residential property to the trust while still maintaining the ability to reside in it for a predetermined number of years. At the end of the specified term, the property is transferred to the designated beneficiaries, typically the trust creator's children or other family members. Georgia Parts can be a beneficial estate planning tool for individuals with valuable homes or properties, as they can help reduce the taxable value of the estate. By transferring ownership of the residence into the trust, the value of the property is effectively frozen at the time of transfer, potentially allowing for a substantial reduction in estate taxes upon the creator's passing. It is important to note that Georgia Parts have specific requirements and limitations. Firstly, the trust creator must survive the predetermined term in order to remove the property from their taxable estate. If they do not outlive the specified period, the property may be included in their estate for tax purposes. Additionally, while residing in the property after its transfer to the trust, the trust creator must pay rent to the trust at a fair market rate. This rental income is considered a taxable gift to the beneficiaries of the trust. There are various types of Georgia Parts available, depending on the specific goals and circumstances of the trust creator: 1. Standard PRT: This is the most common type of PRT, where the trust creator transfers the residential property to the trust for a specified term and retains the right to live in it during that period. At the end of the term, the property passes to the beneficiaries. 2. Granter Retained Annuity Trust (GREAT): In a GREAT, the trust creator transfers the property to the trust, but instead of retaining the right to live in it, they receive a fixed annuity payment for the specified term. At the end of the term, the property passes to the beneficiaries. 3. Granter Retained Unit rust (GUT): Similar to a GREAT, a GUT allows the trust creator to transfer the property to the trust and receive annual income from it in the form of a percentage of the property's value. At the end of the term, the property passes to the beneficiaries. Each type of Georgia PRT has its own advantages and considerations. Consulting with an experienced estate planning attorney is crucial to determine which type of PRT is most suitable based on individual circumstances and objectives.
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.
