A QPRT lets you transfer a primary or vacation residence to a trust while you reserve the right to live in the home for a term of years. The value of the interest you retain (that is, the right to live in the house for a term of years) is calculated using IRS tables. The value of the property transferred into trust, minus your term interest’s value, is a gift known as the “remainder interest.” This gift can be sheltered from gift tax by your gift tax exemption. If you survive the term of years, the trust is not included in your estate for federal estate tax purposes. QPRT’s may provide creditor protection by insulating the residence from your creditor’s claims.