Qualified Personal Residence Trusts

Qualified Personal Residence Trusts

“Qualified Personal Residence Trusts” (or QPRTs) allow the client to transfer his primary or secondary residence to an Irrevocable Trust for a specified number of years.   Assuming the client survives the term of the QPRT, then the residence (and any appreciation associated with it) will pass to his or her beneficiaries and not be included in his or her estate for estate tax purposes.  On the other hand, if the client dies before the end of the trust term then the residence will come back into the estate.  There are a number of tax and non-tax issues associated with this estate planning technique including whether the grantor will continue to reside in the residence after the term of the trust has terminated.   ERIC H. LIGHT, P.A. has worked with many clients over the years to implement this technique as part of a comprehensive estate plan.

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