If a person wants to transfer a home to a child or beneficiary, but continue to live in the house for the remainder of their years, they might consider getting a Qualified Personal Residence Trust (QPRT). This is a good trust to recommend to a client whose residence is the primary part of their estate and which is expected to rapidly appreciate. When setting up a QPRT the grantor should pick a term of years that he or she expects to survive for. If a grantor outlives the set term of years they would be required to make arms-length rental payments to the trust.
See Roger Russell, Home Transfers For Children Can Work For Estate Planning If Done The Right Way, Accounting Today, May 14, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
