Qualified Personal Residence Trust (QPRT)

A Qualified Personal Residence Trust (QPRT) is an estate planning tool that allows a person to transfer their primary or secondary home into a trust while retaining the right to live there for a specified period. After this period, ownership passes to beneficiaries, often children or grandchildren, potentially reducing gift and estate taxes. During the trust term, the homeowner can continue to live in the residence, but once the term ends, the home belongs to the beneficiaries. QPRTs help optimize estate taxes while allowing the owner to enjoy their home during the trust period.