Owen David Kaye’s Answers

Owen David Kaye

Los Angeles Estate Planning Attorney.

Contributor Level 6
  1. Can QPRT be used in estate plan if residence is spouses' separate property?

    Answered over 4 years ago.

    1. Owen David Kaye
    2. Henry Daniel Lively
    3. Rial R. Moulton
    3 lawyer answers

    Yes, W can do with her separate property as she wishes. It is generally preferable to fund QPRTs with separate property. In most situations, the residence is jointly owned by the spouses and the first step is to sever that joint ownership and create equal separate property interests. Then, each spouse contributes their respective separate property interest into their separate QPRT. Were the residence to be contributed to a joint QPRT, the marital deduction calculation would be nearly...

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  2. Estate Planning - Extending term of QPRT after primary term has ended?

    Answered over 4 years ago.

    1. Owen David Kaye
    2. Janet Lee Brewer
    3. Henry Daniel Lively
    3 lawyer answers

    A QPRT is an irrevocable trust. So, once it is executed, it's term cannot be revised. As a general matter, a QPRT is not an appropriate vehicle for someone whose residence is their primary asset since it is likely they will need the equity for retirement. That said, properly structured QPRT can still be helpful in this situation. For example, you can transfer just a portion, e.g., 20%, of the residence to the QPRT. That way, if the grantor outlives the initial term, then (i) a 20% interest...

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