QPRT

A QPRT, or qualified personal residence trust, is a trust that a person puts their home into while retaining the ability to use that home for a certain period of time. At the end of that time period, ownership of the home passes to the beneficiaries. 

Typically, a QPRT is used for a vacation home or some other type of residence that the family as a whole wants to maintain ownership of. A QPRT can result in a gift tax reduction, in addition to removing the home from the taxable estate. However, if the grantor dies before the end of the specified time period, the home is includable in the grantor’s taxable estate.