Qualified Personal Residence Trust


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Qualified Personal Residence Trust

Also called a QPRT. In the United States, a trust to which the grantor transfers his/her personal residence. A QPRT is irrevocable. Therefore, the value of the residence is removed from the grantor's estate, which reduces his/her estate tax liability. The grantor may continue to live in the home for no charge for a certain number of years. The grantor, however, usually must pay a gift tax proportionate to the value of the home he/she owns free and clear.
References in periodicals archive ?
These include irrevocable life insurance trusts and qualified personal residence trusts.
A qualified personal residence trust (QPRT) is generally prohibited for the entire term of the trust from holding any property other than one residence to be used as the personal residence of the term holder(s), but certain exceptions are available.
The qualified personal residence trust must prohibit the holding of any property other than the personal residence, and contain the following provisions:
Qualified personal residence trusts (QPRTs) and personal residence trusts (PRTs) are other special forms of a GRIT.
Chamberlain, Florida Homestead Transfers: The Advantages of Short-term Qualified Personal Residence Trusts, 76 Fla.
Complex trusts, such as qualified personal residence trusts and grantor retained annuity trusts, pose the additional problem of the estate tax inclusion period (ETIP).
Although the qualified personal residence trust is not for everyone, it has been observed as one of the most under-rated tax savers in the estate planner s arsenal today.
Jeanne Longsworth, a partner in the Fort Wayne office of Baker & Daniels, says executives who own vacation properties may benefit from a qualified personal residence trust (QPRT).
The property was purchased for $640,000 in September 2005 from The Leggett Qualified Personal Residence Trust, led by Harry Leggett Jr.
Given her situation, a qualified personal residence trust (QPRT) could help her achieve her goals.
Transferring a residence to a qualified personal residence trust (QPRT) is a popular estate planning technique that can help reduce the size of the grantor's estate.
Miller, Practical Problems and Solutions in Establishing A Qualified Personal Residence Trust, J.
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