Qualified Personal Residence Trust Template

What Is the Qualified Personal Residence Trust?

A qualified personal residence trust removes your home from your taxable estate while you continue living there. You transfer your residence to the trust, retain the right to occupy it rent-free for a specified term (typically 5-15 years), then ownership passes to your children or other beneficiaries. The gift tax you pay is calculated on the remainder interest only, not the full property value.

A $2 million home transferred through a 10-year QPRT might generate a taxable gift of only $800,000, saving $1.2 million in gift tax value. This strategy works for primary residences and vacation homes, protects appreciated real estate from estate taxes, and lets you remain in your home during the trust term without triggering any tax consequences.

 

 

Is This Qualified Personal Residence Trust Right for You?

You need this agreement if you're:

• Owning a home worth $1 million or more
• Facing federal or state estate taxes
• Wanting to transfer wealth to children at reduced gift tax
• Planning to stay in your home for 5+ more years
• In good health with normal life expectancy
• Looking to remove appreciated real estate from your estate

You definitely need this agreement if:

• Your total estate will exceed the federal exemption amount
• Your home has appreciated significantly since purchase
• You want children to inherit but need to live there now
• Estate taxes would force your family to sell the property
• You're under 75 and healthy enough for a 10-year term

 

 

Why Thousands Trust Legal GPS Templates

Save Money: Estate attorneys charge $4,000-$10,000 to draft a QPRT. Get the same protection for $35.

Save Time: Download immediately and complete in under three hours with our step-by-step guidance.

Look Professional: Courts and title companies accept our attorney-drafted templates without question.

Keeps You Out of Court: Comprehensive provisions including proper retained interest terms, qualified indebtedness rules, and IRC Section 2702 compliance prevent IRS challenges to your gift valuation and estate exclusion.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout

Complete your purchase through our secure payment system. Your template downloads immediately.

Step 2: Instant Download

Receive your attorney-drafted template in Microsoft Word format. Open it in Word or Google Docs and start customizing.

Step 3: Fill In the Highlighted Fields

Follow the bracketed guidance to complete the retained interest term, remainder beneficiary designations, distribution provisions, and expense allocations. Work with a real estate attorney to prepare and record the property deed transferring your home to the trust.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. Your purchase includes unlimited lifetime use. Create separate QPRTs for your primary residence and vacation home, update the trust if you move, or use it for multiple clients if you're an advisor. You own the template forever.

Is this contract legally binding?

Yes. This is the same qualified personal residence trust document estate planning attorneys draft for clients paying $6,000-$12,000. Courts, title companies, and the IRS recognize properly executed QPRTs as legally binding instruments that qualify under IRC Section 2702. Execute the agreement, record the deed transferring the property, and file the required gift tax return.

What happens if I die during the retained interest term?

The property is included in your taxable estate as if the QPRT never existed. Your beneficiaries still inherit the home, but you lose the gift and estate tax savings. This is why choosing the right term length for your age and health is critical—the entire strategy depends on surviving the term.

Can I have a mortgage on the property?

Yes, but the mortgage must be "qualified indebtedness" under IRS rules—meaning it was used to acquire, construct, or substantially improve the residence. The mortgage balance should not exceed 50% of the property value. You or the trust can make the mortgage payments during the retained interest term.

What if I want to sell the home during the term?

You can sell the residence during the term if the trust agreement permits it. The sale proceeds must be used to purchase a qualified replacement residence within two years. If you don't buy a replacement, the proceeds typically convert to an annuity payable to you for the remaining term.

Will this trigger property tax reassessment?

In some states, yes. California provides exemptions that can prevent reassessment during the term if you file the proper forms. When the term ends and the property passes to your children, they may qualify for parent-child exclusions. Consult a property tax specialist in your state before creating the QPRT to understand the tax consequences.