QUALIFIED PERSONAL RESIDENCE TRUST

A form of grantor retained income trust sanctioned by the Internal Revenue Code in which the grantor transfers a personal residence to an irrevocable trust which gives the grantor the right to use the residence and receive whatever income it generates for a specified term and gives the remainder interest to others, such as the grantor?s children. If the grantor survives the term, the principal will be excluded from the grantor?s estate for death tax purposes.