What Is a QPRT?
A Qualified Personal Residence Trust (QPRT) is an estate-planning strategy designed to help homeowners transfer a primary or secondary residence to their heirs while potentially reducing future estate and gift tax exposure. A QPRT allows you to retain the right to live in your home for a specified period-of-time, after which ownership passes to the beneficiaries you’ve chosen. By removing future appreciation from your taxable estate, this strategy can play an important role in preserving family wealth and supporting long-term legacy planning when structured as part of a comprehensive estate plan.
Key Considerations When Using a QPRT
While a QPRT can be a valuable estate-planning tool, it is not appropriate for every situation. The term of the trust must be carefully selected, as the anticipated tax benefits generally apply only if the grantor outlives the trust term. In addition, because the residence is transferred out of the estate, beneficiaries may not receive a step-up in cost basis, which can affect future capital gains considerations. Ongoing flexibility, liquidity needs, and long-term residency plans should also be evaluated before implementing a QPRT. For these reasons, QPRTs are most effective when designed in coordination with experienced legal, tax, and trust professionals.
Why Choose Nevada Trust Company® as Your Trust Services Provider?
At Nevada Trust Company®, our team brings extensive experience in trust administration and fiduciary services, helping clients navigate complex planning strategies with clarity and confidence. We remain attentive to evolving laws and regulations to ensure the guidance we provide is informed, thoughtful, and aligned with each client’s goals.
For more information about QPRT services or other trust-related questions, please complete our contact form and a member of our team will be in touch shortly.
