Statements regarding a qualified personal residence trust

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Of the following statements regarding a qualified personal residence trust, which is true?

A. At the end of the trust term, the residence reverts back to the grantor/settlor.

B. At the creation of the trust, the grantor/settlor has a taxable gift to the remainder beneficiary that is eligible for the annual exclusion.

C. At the end of the trust term, the grantor/settlor must begin paying rent to the remainder beneficiaries of the trust if the grantor/settlor continues to live in the residence.

D. A qualified personal residence trust is ideal for a personal residence that is expected to appreciate at a lower rate than the Section 7520 rate.

E. All of the above are true.

Reference no: EM131514764

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