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 Wisconsin Qualified Personnel Residence Trust (PRT) is an estate planning tool that allows individuals to transfer their primary residence or vacation home to an irrevocable trust, while retaining the right to live in the property for a certain period of time. This trust is specifically tailored for Wisconsin residents and follows the guidelines set by the Wisconsin state laws. The primary goal of a Wisconsin PRT is to reduce or eliminate estate taxes while still maintaining the use and enjoyment of the property during the granter's (the person creating the trust) lifetime. By transferring the property into the PRT, the value of the property is removed from the granter's estate, thus reducing their potential estate tax liability. One of the key features of a Wisconsin PRT is that the granter can continue to live in the property for a predetermined amount of time, known as the retained income period. This period is typically set at a specific number of years, and during this time, the granter is responsible for paying all property taxes, insurance, and maintenance costs associated with the property. Upon completion of the retained income period, the property is then transferred to the designated beneficiaries, usually children or other family members. At this point, the granter no longer has a legal right to occupy the property. However, the granter may have the option to rent the property from the beneficiaries if agreed upon in advance. It's important to note that there are different types of Wisconsin Parts available, depending on the granter's specific needs and circumstances. These include: 1. Granter Retained Income Trust (GRIT): This type of Wisconsin PRT allows the granter to retain an income stream from the property during the retained income period. The income can be in the form of rent paid by the granter themselves or a third party. 2. Granter Retained Annuity Trust (GREAT): With a GREAT, the granter receives a fixed annual annuity payment from the trust for the duration of the retained income period. This payment is typically a set percentage of the initial fair market value of the property. 3. Granter Retained Unit rust (GUT): In a GUT, the granter receives a fixed percentage of the trust's fair market value, recalculated annually, as the income stream. This allows for potential growth in the trust's value to be passed on to the beneficiaries. Wisconsin Parts can be complex legal structures that require careful consideration and planning. It is advisable to consult an experienced estate planning attorney or financial advisor who specializes in this area to fully understand the implications and benefits of establishing a Wisconsin PRT.
A Wisconsin Qualified Personnel Residence Trust (PRT) is an estate planning tool that allows individuals to transfer their primary residence or vacation home to an irrevocable trust, while retaining the right to live in the property for a certain period of time. This trust is specifically tailored for Wisconsin residents and follows the guidelines set by the Wisconsin state laws. The primary goal of a Wisconsin PRT is to reduce or eliminate estate taxes while still maintaining the use and enjoyment of the property during the granter's (the person creating the trust) lifetime. By transferring the property into the PRT, the value of the property is removed from the granter's estate, thus reducing their potential estate tax liability. One of the key features of a Wisconsin PRT is that the granter can continue to live in the property for a predetermined amount of time, known as the retained income period. This period is typically set at a specific number of years, and during this time, the granter is responsible for paying all property taxes, insurance, and maintenance costs associated with the property. Upon completion of the retained income period, the property is then transferred to the designated beneficiaries, usually children or other family members. At this point, the granter no longer has a legal right to occupy the property. However, the granter may have the option to rent the property from the beneficiaries if agreed upon in advance. It's important to note that there are different types of Wisconsin Parts available, depending on the granter's specific needs and circumstances. These include: 1. Granter Retained Income Trust (GRIT): This type of Wisconsin PRT allows the granter to retain an income stream from the property during the retained income period. The income can be in the form of rent paid by the granter themselves or a third party. 2. Granter Retained Annuity Trust (GREAT): With a GREAT, the granter receives a fixed annual annuity payment from the trust for the duration of the retained income period. This payment is typically a set percentage of the initial fair market value of the property. 3. Granter Retained Unit rust (GUT): In a GUT, the granter receives a fixed percentage of the trust's fair market value, recalculated annually, as the income stream. This allows for potential growth in the trust's value to be passed on to the beneficiaries. Wisconsin Parts can be complex legal structures that require careful consideration and planning. It is advisable to consult an experienced estate planning attorney or financial advisor who specializes in this area to fully understand the implications and benefits of establishing a Wisconsin PRT.
