Qualified Personal Residence Trust

Qualified Personal Residence Trust

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Qualified Personal Residence Trust

Qualified Personal Residence Trust definition:  (QPRT) transfers your residence to beneficiaries at your death or after a specified number of years.  The residence is held by an irrevocable trust with children or other heirs as the beneficiaries.  The grantor may occupy the home until the trust expires, at which point in time it transfers to the beneficiaries.  If the grantor dies before the trust expires, the value of the home is included in the estate and subject to estate taxes. However, the value of the home is not subject to estate taxes as long as the grantor dies after the trust expires. QPRTs are irrevocable. Gift taxes may apply on the beneficiaries remainder interest in the property at the time the trust is established.  When the beneficiaries sell the property, their cost basis is not “stepped up” as it is with inherited property (making capital gains tax a possibility on appreciated property).

Download our free Family Office Report to learn more about the family office industry.

Read more Family Office Definitions

Tags: What is qualified personal residence trust?, qualified personal residence trust definition, qualified personal residence trust family office, qualified personal residence trust term, define qualified personal residence trust, qualified personal residence trust wealth management, qualified personal residence trust multi-family office, qualified personal residence trust single family office

Leave Your Response

* Name, Email, Comment are Required

We run the Family Offices Group, the #1 largest family office association with 84,000+ global members. We offer live events, a bestselling book, Webinars, a family office database, and a family office training & certificate program called the Qualified Family Office Professional (QFOP). To get to know us please watch this 2 minute video, and contact us any time during pacific business hours by calling (212) 729-5067 or emailing us at Clients@FamilyOfficesGroup.com.

Free Family Office Report (PDF)

Contact Details for 1,000 Family Offices in Excel