Should I create a QPRT before 2026?
With the potential reversion of the lifetime gift and estate tax exemption in 2026 and rising interest rates, now is a good time to sit down with your advisor to determine if a QPRT may be right for your situation.
PARTITION ACTION: AN EQUITABLE REMEDY
Any co-owner can file a partition action, regardless of the size of their ownership interest. In other words, if someone owns as little as 1% of a piece of property, they can exercise their right to partition. Under California Civil Procedure Section 872.210, “a partition action may be commenced and maintained by any of the following persons: (1) a co-owner of personal property or (2) an owner of an estate of inheritance, an estate for life, or an estate for years in real property where such property or estate therein is owned by several persons concurrently, or in successive estates.” Therefore, to prevail in a partition action, a party must prove through the property deed(s), other title paperwork, and any estate planning documents if applicable, that they have an interest in the property.