Blog: Bearmoor Notes

Friday, December 12, 2008

A Silver Lining Does Exist – Declining Home Values Present a QPRT Opportunity

The value you bring to many of your clients is in your knowledge and innovation. You assist your clients achieve their financial and life goals by outlining for them unique opportunities. Lately you may have had to deal with some of your client’s frustration or even anger regarding the volatility within the marketplace. Perhaps for some of your clients you can use this volatility to assist them. Plunging real estate values have made it an opportune time for elder homeowners to give property to their children, while realizing big savings on gift and estate taxes. They can do this by moving the home out of their estate with a so-called qualified personal residence trust, or QPRT, which allows homeowners to live in the property for many years before passing it on to their heirs. Though these trusts have been around for many years, many estate planners say now could be a good time to set one up since real-estate values have fallen dramatically in many markets.

As a fiduciary with knowledge in this area you could be found to be liable if you did not consider all aspects of the estate plan. Why not turn a potential negative into a positive and further solidify your organization as a quality provider of financial and life planning advice.

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