Which trust places a residence in a trust either for the benefit of one’s spouse and children or for a charity?

• A. Testamentary trust
• B. Clifford trust
• C. Qualified personal residence trust
• D. Charitable remainder annuity trust

Answer: (C)

The key idea is using a trust to move a personal residence out of your immediate estate while still allowing you to live there for a period, which can reduce gift and estate taxes and benefit successors. A Qualified Personal Residence Trust is designed for this exact purpose: you transfer the home into the trust but retain the right to occupy it for a defined term. After that term ends, the residence passes to your chosen beneficiaries, typically your spouse and/or children, at a reduced value for tax purposes. This structure focuses on turning a personal residence into a trust asset with a specified occupancy period, aligning with the goal of benefiting family (and, in broader planning, coordinating with charitable goals) rather than being driven mainly by charitable remainder mechanics or by other types of trusts that don’t center on a residence. That makes a Qualified Personal Residence Trust the best fit among the options.