A Personal Residence Trust ("PRT") is an irrevocable Trust, created for a term of years, to which you transfer your personal residence. You retain the right to live in the residence for the term of the Trust. Provided you survive the term of years for which the Trust has been created, the remainder beneficiaries of the trust (usually your children) become the owners of the residence upon the expiration of the term of years. At that time, you must either vacate the residence or enter into a formal lease with the remainder beneficiaries and pay fair market rent to them. Upon your death, the value of the residence (including any appreciation) is not included in your taxable estate. On the other hand, if you die before the trust's term of years ends, then the residence is included in your taxable estate.