Court Blesses Strategy to Preserve Homestead Benefits After QPRT Term Expires
In a case of first impression, the Martin County circuit court and Judge Mirman ruled in favor of the Firm’s client on summary judgment, finding that homestead qualification remains uninterrupted when children follow a proper strategy of granting their parents the right to live in a home conveyed to a qualified personal resident trust (“QPRT”), even after the retained term expires. Mr. Kempe explained to local media the importance of the case, as many Florida residents use QPRTs in their estate planning: “The case is important because homestead status offers important economic and personal protections. Senior family members are often happy to utilize the tax laws to benefit their children, as long as it doesn’t cost too much or significantly affect their personal lives and financial securities. We were happy when we obtained IRS approval of this technique several years ago, in what have come to be known as the “reverse QPRT” rulings, and are even happier now that our view of the Florida homestead law has been upheld by local courts.”
Although Martin County has expressed an interest in appealing the case, both Mr. Kempe and attorney Ashley Sundar, who argued the case, are confident that the weight of Florida law favors Judge Mirman’s decision.