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.
A New Hampshire Personal Residence Trust (NH PRT) is a legal estate planning tool specifically designed for homeowners in the state of New Hampshire. It provides a way for individuals or families to protect their primary residences from potential creditors, minimize estate taxes, and ensure the smooth transfer of property to heirs. The NH PRT is established by the homeowner (known as the 'granter') who transfers their primary residence into the trust, while retaining the right to live in the property for a specified period of time (known as the 'retained interest'). During this period, the granter continues to pay mortgage, property taxes, and maintenance expenses. The key advantage of the NH PRT is that it effectively removes the primary residence from the granter's taxable estate, potentially reducing or even eliminating estate taxes upon their passing. This can have significant benefits, particularly for individuals with substantial property values that would otherwise be subject to high estate taxation. There are two main types of New Hampshire Personal Residence Trusts: 1. Granter Retained Interest Trust (GRIT): In this type of trust, the granter retains a fixed number of years to live in the property while transferring ownership to the trust. Estate taxes are calculated based on the value of the property at the time of transfer, which usually results in lower tax liability compared to holding the property until death. 2. Qualified Personnel Residence Trust (PRT): The PRT allows the granter to retain the right to live in the property for a fixed number of years or until their passing. Once the trust term ends, the property is transferred to the named beneficiaries without additional gift or estate taxes. This type of trust provides more flexibility in terms of residency compared to GRIT. It's important to note that establishing a New Hampshire Personal Residence Trust requires the assistance of an experienced estate planning attorney who specializes in this area of law. They can help navigate the complexities of creating the trust, determine the appropriate trust type, and ensure all legal requirements are met. In summary, a New Hampshire Personal Residence Trust is a powerful tool for protecting your primary residence, reducing estate taxes, and facilitating the transfer of property to your chosen beneficiaries. By utilizing this trust, homeowners in New Hampshire can secure their most valuable asset and leave a lasting legacy for their loved ones.A New Hampshire Personal Residence Trust (NH PRT) is a legal estate planning tool specifically designed for homeowners in the state of New Hampshire. It provides a way for individuals or families to protect their primary residences from potential creditors, minimize estate taxes, and ensure the smooth transfer of property to heirs. The NH PRT is established by the homeowner (known as the 'granter') who transfers their primary residence into the trust, while retaining the right to live in the property for a specified period of time (known as the 'retained interest'). During this period, the granter continues to pay mortgage, property taxes, and maintenance expenses. The key advantage of the NH PRT is that it effectively removes the primary residence from the granter's taxable estate, potentially reducing or even eliminating estate taxes upon their passing. This can have significant benefits, particularly for individuals with substantial property values that would otherwise be subject to high estate taxation. There are two main types of New Hampshire Personal Residence Trusts: 1. Granter Retained Interest Trust (GRIT): In this type of trust, the granter retains a fixed number of years to live in the property while transferring ownership to the trust. Estate taxes are calculated based on the value of the property at the time of transfer, which usually results in lower tax liability compared to holding the property until death. 2. Qualified Personnel Residence Trust (PRT): The PRT allows the granter to retain the right to live in the property for a fixed number of years or until their passing. Once the trust term ends, the property is transferred to the named beneficiaries without additional gift or estate taxes. This type of trust provides more flexibility in terms of residency compared to GRIT. It's important to note that establishing a New Hampshire Personal Residence Trust requires the assistance of an experienced estate planning attorney who specializes in this area of law. They can help navigate the complexities of creating the trust, determine the appropriate trust type, and ensure all legal requirements are met. In summary, a New Hampshire Personal Residence Trust is a powerful tool for protecting your primary residence, reducing estate taxes, and facilitating the transfer of property to your chosen beneficiaries. By utilizing this trust, homeowners in New Hampshire can secure their most valuable asset and leave a lasting legacy for their loved ones.
