ESTATE PLANNING ATTORNEY · AKRON, OH
Qualified Personal Residence Trusts in Akron, OH
Spatz Law Group creates qualified personal residence trusts, often called QPRTs, for Northeast Ohio homeowners, so your home or vacation property passes to your children at a reduced gift tax value.
Leaving the family cottage without a big tax bill
For many families, a vacation home like a lake cottage, or the house the kids grew up in, carries more meaning than any account. If it keeps rising in value, it can also add to your taxable estate. A qualified personal residence trust moves the home to your children now, at a reduced value for gift tax purposes, so future growth stays out of your estate. Ohio has no estate tax, so the savings are federal. With the federal exemption at $15 million per person in 2026, a QPRT matters mainly for families whose estates are near or above that line.
Living in your home while it's already promised to your children
Nothing changes day to day. You keep living in the home, paying the expenses and using it as you always have for the term you choose. When the term ends, the home belongs to your children. If you want to stay, you can rent it from them at fair market rent, which moves even more money to them without gift tax.
Choosing a term you'll outlive
The longer the term, the lower the gift value, but the trust only works if you outlive it. If you die during the term, the home comes back into your estate. Choosing the right term means weighing the tax savings against your age and health, and that's a conversation worth having carefully.
Your attorney
Debra A. Spatz
Licensed in Ohio since 2008 · Ohio Supreme Court Reg. #0083356
Chicago-Kent College of Law · University of Illinois, Finance
Meet DebraBefore your first conversation
Bring the deed to the home, any mortgage statement, a recent appraisal or estimate of value, and the names of the children or others you want to receive it.
★★★★★Google review
If you are looking for a local estate attorney in Bath, Ohio, Deb Spatz with Spatz Law Group is truly exceptional. I know several people who have worked with Deb, and they consistently share nothing but positive experiences. Deb takes the time to get to know you and your story, allowing her to create a plan that brings real peace of mind for you and your family. She even offers the option to record a legacy video for your loved ones, which is an incredibly meaningful and lasting gift. Do not wait until it is too late. I highly recommend calling Deb today.
Frequently Asked Questions
When does a QPRT make the most sense?
Usually when four things line up: your estate is likely to owe federal estate tax, the home is expected to keep rising in value, you're healthy enough to outlive the term, and the IRS interest rate is relatively high, which lowers the gift value. If your main goal is simply keeping the family cottage in the family, a different trust may fit better.
What happens if I sell the house during the term?
You can sell. The trust can use the proceeds to buy a new residence, or the trust can convert to paying you an annuity for the rest of the term. Your trust spells out these options so a move doesn't undo your plan.
Do my children get a step-up in tax basis on the home?
No. Because the home passes by gift, your children take your original tax basis rather than a stepped-up value at your death. That can mean more capital gains tax if they sell. Debra weighs that trade-off against the estate tax savings before recommending a QPRT.
Can I put a home with a mortgage into a QPRT?
It's possible, but a mortgage complicates the trust, since each payment you make can count as an additional gift. These trusts work best for homes that are paid off or nearly paid off.
Who pays property taxes and upkeep during the term?
You do, as the person living in the home. That's expected, and it doesn't count as a gift to your children. After the term ends, if you rent the home back, the rental agreement sets who pays what.
Can my spouse and I both use QPRTs for the same home?
Yes. Married couples often each transfer their half of the home into separate trusts, sometimes with different terms. That spreads the risk if one spouse dies during the term.