Qualified Personal Residence Trust

Another technique used in advanced estate planning is the Qualified Personal Resident Trust (QPRT). Generally, a large part of an estate is the family residence(s). You can remove up to two homes from your taxable estate by placing them in a QPRT, and you retain the right to live there rent-free during the term of the trust.

You retain the right to buy and sell the home(s) in QPRTs, which are permitted the Homestead tax exemption in most Florida counties. If a home is sold but not replaced, the money is retained by the trust to provide cash flow to you for the remaining trust term or until your death.

After your death, the home(s) passes to your family heirs. If the QPRT expires during your lifetime, the home(s) must be rented for continued use. This can be provided for in a favorable manner, which often produces a beneficial outcome.

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