Qualified personal residence trust (QPRT)
Definition
An irrevocable trust in which the trust res/corpus is the grantor's personal residence, and the grantor retains the right to live in that residence.
Illustrative caselaw
See, e.g In re Earle, 307 B.R. 276 (Bankr. S.D. Ala. 2002).
See also
Definition from Nolo’s Plain-English Law Dictionary
A trust designed to save on estate tax by moving a residence (or vacation home, if certain conditions in the tax code are met) out of the owners taxable estate. The owner transfers ownership of the property to the trust but keeps the right to live there for a number of years. QPRTs are most popular when real estate values are going up rapidly.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:22 pm
