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.
Cook Illinois Personal Residence Trust is a legal instrument designed to provide individuals with an estate planning tool to protect and manage their personal residence. It allows the person to transfer the ownership of their home into the trust, ensuring their valuable asset is shielded from potential creditors or other legal challenges. The Cook Illinois Personal Residence Trust, also known as Cook County Personal Residence Trust, is typically a revocable trust established by a settler who resides in Cook County, Illinois. It is created to take advantage of favorable tax and asset protection laws specific to the region. One of the primary objectives of a Cook Illinois Personal Residence Trust is to reduce estate taxes while allowing the settler to continue living in their home for a predetermined period or until their passing. By transferring the ownership to the trust, the settler can potentially minimize the value of their estate subject to estate tax. There are two main types of Cook Illinois Personal Residence Trust — thGranteror Retained Annuity TrustGREATAT) and the Qualified Personnel Residence Trust (PRT). 1. Granter Retained Annuity Trust (GREAT): A GREAT is established when the settler transfers their personal residence into the trust and retains the right to receive fixed annuity payments for a specified period. At the end of the trust term, the remaining assets in the trust are distributed to the beneficiaries, typically the settler's family members, free from estate and gift taxes. The annuity payments received by the settler are considered taxable income. 2. Qualified Personnel Residence Trust (PRT): A PRT allows the settler to transfer the ownership of their personal residence into the trust while retaining the right to live in the property for a fixed term. After the trust term ends, the residence is passed on to the beneficiaries, often the settler's children or other family members, at a reduced value for estate tax purposes. If the settler wishes to continue residing in the property after the PRT term expires, a rental agreement can be established with the new owners of the property. In conclusion, the Cook Illinois Personal Residence Trust is a valuable estate planning tool available in Cook County, Illinois. It allows individuals to protect their personal residence from potential creditors and minimize estate taxes by transferring ownership to a trust. The Granter Retained Annuity Trust (GREAT) and the Qualified Personnel Residence Trust (PRT) are the two main types of Cook Illinois Personal Residence Trust, each offering specific benefits and strategies for estate planning.Cook Illinois Personal Residence Trust is a legal instrument designed to provide individuals with an estate planning tool to protect and manage their personal residence. It allows the person to transfer the ownership of their home into the trust, ensuring their valuable asset is shielded from potential creditors or other legal challenges. The Cook Illinois Personal Residence Trust, also known as Cook County Personal Residence Trust, is typically a revocable trust established by a settler who resides in Cook County, Illinois. It is created to take advantage of favorable tax and asset protection laws specific to the region. One of the primary objectives of a Cook Illinois Personal Residence Trust is to reduce estate taxes while allowing the settler to continue living in their home for a predetermined period or until their passing. By transferring the ownership to the trust, the settler can potentially minimize the value of their estate subject to estate tax. There are two main types of Cook Illinois Personal Residence Trust — thGranteror Retained Annuity TrustGREATAT) and the Qualified Personnel Residence Trust (PRT). 1. Granter Retained Annuity Trust (GREAT): A GREAT is established when the settler transfers their personal residence into the trust and retains the right to receive fixed annuity payments for a specified period. At the end of the trust term, the remaining assets in the trust are distributed to the beneficiaries, typically the settler's family members, free from estate and gift taxes. The annuity payments received by the settler are considered taxable income. 2. Qualified Personnel Residence Trust (PRT): A PRT allows the settler to transfer the ownership of their personal residence into the trust while retaining the right to live in the property for a fixed term. After the trust term ends, the residence is passed on to the beneficiaries, often the settler's children or other family members, at a reduced value for estate tax purposes. If the settler wishes to continue residing in the property after the PRT term expires, a rental agreement can be established with the new owners of the property. In conclusion, the Cook Illinois Personal Residence Trust is a valuable estate planning tool available in Cook County, Illinois. It allows individuals to protect their personal residence from potential creditors and minimize estate taxes by transferring ownership to a trust. The Granter Retained Annuity Trust (GREAT) and the Qualified Personnel Residence Trust (PRT) are the two main types of Cook Illinois Personal Residence Trust, each offering specific benefits and strategies for estate planning.
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.
