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 Franklin Ohio Personal Residence Trust, also known as an Ohio PRT, is a legal arrangement that allows individuals to protect their primary residence while still maintaining certain benefits during their lifetime. Created under Ohio law, this type of trust offers specific advantages for homeowners seeking to shield their home from potential creditors, Medicaid, and probate. The primary purpose of a Franklin Ohio Personal Residence Trust is to transfer the ownership of one's residence into the trust, thereby removing it from their estate. This strategic move enables homeowners to protect their property value, preserve it for their beneficiaries, and potentially qualify for Medicaid benefits in case long-term care is needed. By placing the residence into the trust, the granter (homeowner) retains control over the property during their lifetime, being able to stay, rent, sell, or otherwise manage it as they wish. There are two main types of Franklin Ohio Personal Residence Trusts: 1. Revocable PRT: This type of trust allows the granter to modify or terminate the trust at any time during their lifetime. By maintaining this flexibility, homeowners can adapt to changing circumstances or unforeseen needs. However, the revocability factor also means that the residence is deemed an available asset for Medicaid eligibility purposes. 2. Irrevocable PRT: As the name suggests, this trust type cannot be modified or revoked once established. By choosing this option, homeowners gain increased asset protection from creditors and Medicaid, as the residence is no longer considered part of their estate. Although the irrevocable nature of this trust provides greater asset preservation benefits, it does relinquish the flexibility of the revocable PRT. Both types of Franklin Ohio Personal Residence Trusts offer unique advantages and considerations, depending on the homeowner's goals, financial situation, and long-term care plans. It is crucial to consult with an experienced estate planning attorney in Ohio to determine the most suitable type of trust for one's needs and to ensure proper and lawful establishment of the trust. In summary, a Franklin Ohio Personal Residence Trust is a legal tool available to Ohio homeowners seeking to protect their primary residence from creditors and Medicaid, while still maintaining control and enjoying certain benefits during their lifetime. The two main types, revocable and irrevocable Parts, offer different levels of flexibility and asset protection. Consulting an estate planning attorney is highly recommended when considering this estate planning strategy.A Franklin Ohio Personal Residence Trust, also known as an Ohio PRT, is a legal arrangement that allows individuals to protect their primary residence while still maintaining certain benefits during their lifetime. Created under Ohio law, this type of trust offers specific advantages for homeowners seeking to shield their home from potential creditors, Medicaid, and probate. The primary purpose of a Franklin Ohio Personal Residence Trust is to transfer the ownership of one's residence into the trust, thereby removing it from their estate. This strategic move enables homeowners to protect their property value, preserve it for their beneficiaries, and potentially qualify for Medicaid benefits in case long-term care is needed. By placing the residence into the trust, the granter (homeowner) retains control over the property during their lifetime, being able to stay, rent, sell, or otherwise manage it as they wish. There are two main types of Franklin Ohio Personal Residence Trusts: 1. Revocable PRT: This type of trust allows the granter to modify or terminate the trust at any time during their lifetime. By maintaining this flexibility, homeowners can adapt to changing circumstances or unforeseen needs. However, the revocability factor also means that the residence is deemed an available asset for Medicaid eligibility purposes. 2. Irrevocable PRT: As the name suggests, this trust type cannot be modified or revoked once established. By choosing this option, homeowners gain increased asset protection from creditors and Medicaid, as the residence is no longer considered part of their estate. Although the irrevocable nature of this trust provides greater asset preservation benefits, it does relinquish the flexibility of the revocable PRT. Both types of Franklin Ohio Personal Residence Trusts offer unique advantages and considerations, depending on the homeowner's goals, financial situation, and long-term care plans. It is crucial to consult with an experienced estate planning attorney in Ohio to determine the most suitable type of trust for one's needs and to ensure proper and lawful establishment of the trust. In summary, a Franklin Ohio Personal Residence Trust is a legal tool available to Ohio homeowners seeking to protect their primary residence from creditors and Medicaid, while still maintaining control and enjoying certain benefits during their lifetime. The two main types, revocable and irrevocable Parts, offer different levels of flexibility and asset protection. Consulting an estate planning attorney is highly recommended when considering this estate planning strategy.
