qualified personal residence trust
A term to know.
An irrevocable trust authorized under the Code and the Regs whereby a grantor can reduce estate and gift taxes by transferring a residence to the trust for a term of years. During the term, the grantor occupies the residence, and if he or she survives the term, the residence and any appreciation thereon is excluded from the grantor's gross estate. At the end of the term, the residence typically passes to heirs.