A respected attorney based in San Jose, California, John Ramsbacher offers clients experienced tax and estate planning services. Working with family businesses and individuals, Attorney John Ramsbacher pursues a number of strategies, including family limited partnerships and qualified personal residence trusts (QPRT). The latter offers a tax-advantaged avenue for transferring a personal residence, which can be either a vacation home or a primary residence.
Through the QPRT, the donor is able to avoid paying full transfer taxes by transferring the residence to an irrevocable trust. For the duration of a set term, the donor can continue to live in the home, after which time the residence is distributed among the remainder beneficiaries (such as the donor’s children). Also, the residence can remain in trust beyond term expiration. The primary benefit of a QPRT is derived when the donor lives past the trust term, at which point the home will have been transferred at its gift tax value, which is lower than the tax that otherwise would have been assessed. When establishing a QPRT, a trustee must be appointed and an experienced attorney, such as those at Ramsbacher Prokey, LLP, must be retained to draft an irrevocable trust.