Qualified Personal Residence Trust (QPRT)
Transferring a personal residence out of your estate at a discounted gift value.
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Overview & Purpose
An irrevocable trust into which you transfer a personal residence, retaining the right to live in it for a term of years, after which it passes to remainder beneficiaries at a reduced value for gift-tax purposes.
Who May Consider It
- You want to remove a valuable residence and its future appreciation from your taxable estate.
- You are comfortable retaining the home for the full QPRT term.
- May reduce the taxable gift value of the home using the retained-interest discount.
- Removes post-transfer appreciation from your gross estate if you survive the term.
- If you do not survive the term, the home is generally included in your estate.
- Does NOT let you continue living in the home rent-free after the term without tax consequences.
Important Trade-offs
- Requires surviving the trust term to achieve the estate-transfer benefit.
Relevant Assets
Federal IRC § 2702 governs QPRTs; state property and recording rules apply.
Questions to Discuss with an Attorney
- What term length balances the gift-tax discount against my life expectancy?
Related Documents
Sources & References
This article was prepared using publicly available legal and government sources. Laws change, and readers should verify current rules in their jurisdiction.
Reviewed for educational accuracy
Last reviewed: September 30, 2026 · Next scheduled review: March 2027
This article is educational information and is not legal advice. Laws vary by jurisdiction. No attorney has reviewed this material unless a named, licensed attorney is credited above.
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