It is a universally acknowledged that a wealthy client in possession of a good beach house must be in want of a Qualified Personal Residence Trust (QPRT). But QPRTs are not right for everyone – and even when they do make sense at the outset, family, financial, tax, and other circumstances can change, lessening the effectiveness of the QPRT as a wealth transfer tool making it a detriment to the family. This article will outline briefly the nuts and bolts of the QPRT construction and the substantial estate planning benefits that can be reaped from a healthy QPRT. We will then describe common (and uncommon) scenarios when a QPRT can lose effectiveness and illustrate methods to repair any damage and shore up a positive outcome.
See Michael H. Barker, Adam M. Damerow, Caitlin N. Horne, & Lauren A. Jenkins, Home Repair: A Handy Lawyer’s Guide to Fixing a Damaged QPRT, Probate & Property Magazine, Vol. 33, No. 1, January/February, 2019.
