Qualified Personal Residence Trusts (QPRTs)
A qualified personal residence trust (QPRT) allows an individual to remove a personal residence from his or her estate. QPRTs allow the owner of the residence to remain in the home for a period of time with a retained interest in the property. Once that period expires, the interest remaining in the property is transferred to the beneficiaries or a trust for the beneficiaries. Because a fraction of the value of the property is retained by the owner, the gift value is lower than its fair market value.