Houston Qualified Personal Residence Trust (QPRT) Attorney

Qualified Personal Residence Trust

Benefits of a Qualified Personal Residence Trust

 For many of us, our homes are our most valuable asset and therefore, one of the largest parts of our taxable estate.  A Qualified Personal Residence Trust (QPRT) (pronounced “cue-pert”), can allow you to gift away your home or vacation house at a great discount, and also freeze its value for estate tax purposes, while allowing you to continue living in your home. 

How QPRT Works

First you transfer the title to your house to the QPRT (typically for the benefit of your family members or other loved ones), reserving the right to live in the house for a specific number of years. If you live to the end of the specified period, the house (as well as any appreciation in its value since the transfer) passes to your family members or other beneficiaries free from any estate or gift taxes.  After the end of the specified period, you may continue to live in the house but you must pay rent to your loved ones/designated beneficiary to prevent inclusion of the house’s value in your estate. 

There may be an added benefit because it further reduces the value of your taxable estate by the amount of your rental payments. However, the rental income does have income tax consequences for your loved ones/beneficiary.  Should you pass away before the end of the specified period, the full value of the house will be included in your estate for estate tax purposes, though in most instances you are no worse off than you would have been had you not established a QPRT. Additionally, a QPRT can also serve as an excellent asset/creditor protection tool since you technically no longer own the property once the trust is established and your property is transferred to the QPRT. This is especially true for non-homestead property.

Contact Schnurr Law Firm for QPRT in Houston

We can help save on estate taxes with sound succession planning. Contact our office and schedule an appointment to see if a Qualified Personal Residence Trust is right for you and your family.

Schnurr Law Firm, PLLC serves clients throughout the greater Houston area, including, but not limited to Houston, Bellaire, West University, Sugar Land, Missouri City, Richmond, Rosenberg, Katy, Cypress, The Woodlands, Kingwood, League City, Webster, Clear Lake, Pearland, Angleton, and throughout Harris County, Fort Bend County, Montgomery County, Brazoria County and Galveston County.

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