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San Diego Qualified Personal Residence Trust: Considerations

San Diego, California has seen fluctuations over the years in regards to the value of personal residences. It is important to have an estate plan which considers this advanced estate planning. Our office of Law Office of Scott C. Soady, A Professional Corporation can assist you with the preparation of this estate plan.

Cash may also be put into the trust, but the trust instrument must limit such additions to amounts needed to pay trust expenses, to make improvements to the residence, and to enable the trust to purchase a replacement residence. Please feel free to e mail our office if you have any questions.

The residence must be used by the grantor as his principal residence, although he may use the premises secondarily for business purposes. A vacation home can qualify for purposes of the QPRT provisions if certain requirements are satisfied.

The trust must prohibit the sale of the residence to the grantor, his spouse, or to an entity controlled by the grantor or his spouse during the period of the grantor’s retained interest and thereafter in certain situations.

A QPRT has many technical requirements and establishing one is very complicated. A poorly executed trust has many potential undesirable effects. Anyone considering the use of such a trust should seek qualified legal advice. As with all estate plans and the law, there are changes which occur yearly at a minimum and it is important to consult with an attorney who keeps up on the changes in the law.

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