Get a Jump on QPRTs

When title to real property is held by the trustee of a Qualified Personal Residence Trust (QPRT), Fund Members are sometimes surprised that a Commitment involving a QPRT requires review of the QPRT agreement by the title examiner prior to completion of the Commitment. Title issues involving the ability to rely on the Sec. 689.073, F.S., statutory trustee powers, homestead concerns, and who needs to execute the deed from the QPRT, all cannot be determined until the QPRT agreement has been reviewed. To understand why such review is necessary, the Fund Member must first know what a QPRT is to understand the need to “get a jump” on having the QPRT reviewed. The goal of this article is not to delve into the complex tax ramifications of a QPRT, but rather to provide a general understanding of what a QPRT is, how it works, and what is necessary to insure title. Read the article