Transferring property to one's children is seen fairly rarely in the legal world, but the ability to do so is realised specifically by the existence of the Qualified Personal Residence Trust, which allows for property to be held for a period of years and then passed on to children. This trust is not an inheritance, it is instead seen as a gift passed on to the child or children, which means they will still have to pay the appropriate taxes.
Consult with an estate lawyer before proceeding. Make sure you understand all the legal bindings of the trust, and also navigate the document properly, so your children will pay reduced taxes on the property being bestowed on them.
Get a precise estimate on the value of the property so that proper taxes will be filed. Also be certain you want to pass the property on, because a Qualified Personal Residence Trust is a binding legal document and difficult to declare null. In addition, the assistance of a lawyer to declare the trust null would cost additional legal fees which could have been otherwise avoided.
Inform your children of your decision once you fully understand the specific legal ties the trust entails. After they have agreed to accept the property, have a lawyer draw up the Qualified Personal Residence Trust and provide the necessary signatures.
Things you need
- Lawyer consultation
- Qualified Personal Residence Trust