PASSING A HOME TO THE NEXT GENERATION
FROM BALTIMORE WASHINGTON FINANCIAL ADVISORS
with
Thad Ismart | CFP®, ChFEBC, CEPS
Senior Financial Planner
About This Episode
A Qualified Personal Residence Trust, or QPRT, can be a powerful estate planning tool for transferring a home while managing estate taxes. Learn how it works and when it may be appropriate.
Full Description
Transferring a home to the next generation can be one of the most complex parts of estate planning. Between emotional attachment, tax considerations, and long-term planning goals, families often struggle to find the right approach. A Qualified Personal Residence Trust, commonly known as a QPRT, is one option that may help address these challenges.
In this episode of Healthy, Wealthy & Wise, Thad Ismart, CFP®, ChFEBC, CEPS, explains how QPRTs work and why they are sometimes used in estate planning strategies. He outlines how a QPRT allows a homeowner to transfer a residence out of their estate while continuing to live in the property for a specified period of time. If structured properly, this approach can help reduce the taxable value of the estate.
The discussion also highlights important considerations and potential risks. QPRTs are not a fit for every family, and they involve long-term commitments that should be carefully evaluated. Factors such as life expectancy, future housing needs, and changes in tax law all play a role in determining whether a QPRT makes sense.
Thad emphasizes the importance of coordination between estate planning, tax strategy, and overall financial goals. Decisions involving property transfers should never be made in isolation. Understanding both the benefits and limitations of a QPRT helps families avoid unintended consequences.
At BWFA, we work with clients and their estate planning professionals to ensure advanced strategies align with their broader financial picture. This episode provides a practical overview of QPRTs and their role in thoughtful estate planning.
To learn more about estate planning strategies, visit BWFA’s Financial Planning page.
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