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1. Many people implement Qualified Personal Residence Trusts to
greatly reduce gift or estate taxes that would otherwise be imposed
upon the full value of their residence(s). The trusts provide a
painless way to make significant gifts to children and grandchildren.
Even though the gift is made currently, the owner retains the right
to continue to use the residence well into the future. There are
very few planning strategies remaining that provide this combination
of benefits.
2. The grantor's creditors cannot take the property because it
is no longer owned by the grantor. The beneficiary's creditors cannot
take the property because it is not theirs until the end of the
trust term. The property is therefore fully insulated from taking.
3. All appreciation from the property flows to the beneficiaries,
not to the grantor's estate.
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