There is a way in which people in Ohio can transfer their homes to another person while still living there. The idea behind doing this is that the value of the right to the transfer is worth less at the present time than it would be in the future, and there are also reduced taxes. This can be accomplished through the use of a qualified personal residence trust as a facet of the overall estate plan.
QPRTs are normally set up in order to transfer the home to children. A trust is established, and ownership of the home is then transferred to it with the trust beneficiaries being the people who are intended to receive it after the grantor’s death. People may place up to two separate residences in QPRTs, meaning these trusts may be used to transfer both the primary home as well as a vacation home.
Spouses who own the property jointly can both transfer it to the QPRT. If there is a significant portion of land with the home, the IRS will consider land that is not considered to be reasonable for the home’s size and location to be a part of the estate subject to any tax due at the time of death.
These types of grantor trusts may be a way to help reduce taxes owed when a person passes away. As they are just one possible aspect of an overall estate plan, people may want to speak with an estate planning attorney to see if it is feasible. An attorney may be able to look at the entire picture of a person’s estate, then helping to choose the best estate planning tools available to minimize future taxes and avoid probate proceedings.