A Qualified Personal Residence Trust (“QPRT”) is a Trust where a Grantor (you) can either transfer your principal residence or one vacation home and retain the right to live in the residence for a term of years (ex. 10 years) during which time you pay for all the expenses of the residence. After the term of years expires, the beneficiaries of the QPRT will own the house and you can continue to live in the house by paying reasonable rent. A QPRT will remove the house held in the Trust from your taxable estate; the value of the gift is reduced by the value of your retained interest in the house; and if you survive the term of the QPRT, you will be able to further reduce your taxable estate by paying rent to the beneficiaries of the QPRT, who are most likely the intended beneficiaries of your estate (ex. Children).