Consider These Trusts in a Rising Rate Environment

Two options offer potential benefits in a higher-rate environment as interest rates rise: Qualified Personal Residence Trusts and Charitable Remainder Trusts.

A Qualified Personal Residence Trust (QPRT) allows future gifts of homes (or vacation homes) by transferring ownership to the trust while retaining the right to live there for a specified number of years. 

A Charitable Remainder Trust (CRT) allows assets to be donated to charity and draw annual income for life or a specific period of time. The return of funds can be in the form of an annuity or unitrust and can be funded with almost any property that can be properly valued. 

For more information see “Consider These Trusts in a Rising Rate Environment” Glenmede, May 1, 2023.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2023/05/two-options-offer-potential-benefits-in-a-higher-rate-environment-as-interest-rates-rise-qualified-p.html