There are many ways for Michigan families to plan their estates. The specific estate planning tools that are necessary for a particular family will depend on the facts in each case. It is important for families in Michigan to understand all of their options when it comes to estate planning. There are many considerations that must be taken into account as estate planning is completed.
One such consideration is whether individuals want to transfer the value of their personal property to a family member. If people want their home to go to their children following their death, there are many ways to do this. Some of these ways can help to reduce the families overall tax burden. One way to do this is through the use of a Qualified Personal Residence Trust.
A QPRT is a type of trust where a person's home is transferred to another party while reducing the tax cost. This type of trust allows people to stay in their home for a specific period of time before the transfer is completed. With a QPRT the home is transferred to a trust but the homeowner retains the right to live in the property for the trust term. Once the trust term is completed, the transfer is completed.
There are many legal specifics to keep in mind when planning a QPRT or any other type of trust. It is important that individuals understand these requirements prior to estate planning. While the QPRT may work for some Michigan residents, it may not be the best option for all people.
It is important for people to understand how trusts can work for them. Is also important to understand what property rights people retain for property that is placed in trust. For specific legal advice about trust planning and trust administration, individuals in Michigan should speak with a qualified attorney. This blog post can only give general information about these issues.