The Tax Advantages of Qualified Personal Residence Trusts

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.

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About John Ramsbacher

As a Partner with Ramsbacher Prokey LLP in San Jose, California, John Ramsbacher practices tax and estate planning; probate; charitable planning; and representing taxpayers in controversy matters with IRS and FTB from audits to Tax Court. Along with overseeing five other lawyers at Ramsbacher Prokey, Mr. Ramsbacher primarily represents high net worth individuals and family businesses as a litigator and transactional attorney. Earlier in his career, John Ramsbacher performed as an Adjunct Faculty member in Golden Gate University's Masters of Taxation program. When not guiding clients through legal controversies at Ramsbacher Prokey, John Ramsbacher acts as co-founder and Director of Republic Bank, Inc., and participates with several professional organizations. The recipient of an American Jurisprudence Award for Excellence in Gift and Estate Taxation, he belongs to the Executive Committee of the Taxation Section of The State Bar of California; the Santa Clara County Estate Planning Council; the San Francisco Estate Planning Council; and the Estate Planning, Trust, and Probate Section of the Santa Clara County Bar Association. Mr. Ramsbacher is a Fellow with the American College of Trust and Estate Counsel (ACTEC). He previously chaired the Estate and Gift Tax Committee of the Taxation Section of The State Bar of California. Also in addition to his work with Ramsbacher Prokey, John Ramsbacher speaks and writes about these issues for conferences and journals. Since earning his law degree from Tulane University Law School in New Orleans, Mr. Ramsbacher has published pieces on Crummey and Cristofani trusts as well as on family limited partnerships. During the past decade, he engaged audiences at the 59th Institute on Federal Taxation at New York University, the 12th Annual Estate and Gift Tax Conference in Beverly Hills and San Francisco, three Practising Law Institute's Annual Estate Planning Institutes, and other events. Chosen for the Best Lawyers in America, the Bar Register of Preeminent Lawyers, and Super Lawyers, John Ramsbacher enjoys scuba diving and traveling when away from the Ramsbacher Prokey firm.
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