Trusts
- Understanding Trusts
- Qualified Personal Residence Trust
- Qualified Terminable Interest Property Trust (QTIP)
- Grantor Retained Annuity Trust
- Wealth Replacement Trust
- Charitable Remainder Trust
- Charitable Lead Trust
- Charitable Gift Annuity
- Glossary
Qualified Personal Residence Trust
A qualified personal residence trust (QPRT) is an arrangement where a personal residence is transferred to a trust for a term of years, with the residence passing to beneficiaries at the end of the trust term. A QPRT allows you to make a gift of your current remainder interest in a residence, but continue to occupy the home for a number of years in the future. The residence will revert to your estate if you die during the trust term. Second homes (e.g., vacation homes) are especially good candidates for transfers to a QPRT.
Because you retain a term (and reversionary) interest in the trust, the value of the interest transferred to beneficiaries is reduced—which can result in significant tax savings. Another benefit is that all future appreciation is transferred to beneficiaries without being subject to gift or estate tax.
Upon expiration of the term, you can continue to occupy the residence, provided fair market rent is paid. The payment of rent to beneficiaries further reduces your estate value.
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Securities and insurance products are offered through INFINEX INVESTMENTS INC. and its affiliates, member FINRA/SIPC. Infinex Investments Inc. and Exchange Investment Services, Inc. are independent entities.
Securities and insurance products are offered through INFINEX INVESTMENTS INC. and its affiliates, member FINRA/SIPC. Infinex Investments Inc. and Exchange Investment Services, Inc. are independent entities.
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