Effect on Property Taxes and Transfer Tax

The original transfer of the residence to the Qualified Personal Residence Trust does not require any reassessment of value for tax purposes as no "change in ownership" will have occurred while the grantor of the trust retains the right to use and occupy the residence. However, at the end of the term, when the property passes to the remainder beneficiaries, a change of ownership occurs. Unless the property qualifies for either the parent-child or grandparent-grandchild exemption to reassessment, it will be reassessed.