Transfer Residence

QRPT

Irrevocable trust established for the client’s benefit for a fixed term of years. Upon expiration of the retained term of years, the residence may remain in trust for the client’s beneficiaries or be distributed outright.

During Retained Term of Years

Client retains right to use the residence. Ideally, the property will appreciate in value. If the client survives the retained term, the trust property and appreciation since the funding of the QPRT pass to clients’ beneficiaries, estate tax free.

If client dies during the retained term, the trust property and the appreciation on the trust property is included in the client’s estate for estate tax purposes.

Upon Expiration of Retained Term or Client’s Death

Property may remain in trust for beneficiaries or be distributed to beneficiaries outright and free of trust. Client may continue to occupy the residence if the client pays fair market rent.