Those with Qualified Personal Residence Trusts may see more audit activity from the IRS and state tax departments

Donald Hamburg, a partner in GEABP’s Trusts & Estates group, has just published a Client Alert entitled “Qualified Personal Residence Trusts Attract IRS and NYS Estate Tax Audits,” which discusses heightened audit activity by the IRS and state tax departments into the operation of personal residence trusts.  The Client Alert discusses the types of questions raised and information requested in such audits.  It appears that the IRS and state tax examiners are taking the administration of QPRTs quite seriously and therefore it behooves those who have created such trusts to review their record keeping and to comply with the best practices as indicated by the IRS questions.  The Alert can be read here.