A New Mexico Qualified Personnel Residence Trust (PRT) is a legal arrangement that allows an individual to transfer ownership of their primary residence or vacation home to their beneficiaries while still retaining the right to live in the property for a predetermined term. In this case, a One Term Holder refers to the granter or the person who established the trust and will retain use of the property for a specified period. The New Mexico PRT is designed to provide estate tax and probate advantages by removing the value of the property from the granter's taxable estate. By placing the residence in the trust, the granter can potentially reduce estate taxes while gifting the property to their chosen beneficiaries. The term of the trust is usually determined by the granter, typically ranging from several years to their lifetime. This type of trust is commonly used by individuals who have an estate valued above the federal estate tax exemption limit and wish to pass down their primary residence to their loved ones while minimizing potential estate tax liabilities. It can also be an effective strategy to protect the value of the property, as any appreciation that occurs during the term of the trust is generally not included in the granter's estate. There are several variations of Parts, including the Granter Retained Annuity Trust (GREAT) and the Granter Retained Unit rust (GUT). These types of trusts have similar purposes of transferring property while generating tax benefits for the granter. The specific differences lie in the payment structure and valuation method used to calculate the gift tax value. It's important to note that establishing a New Mexico PRT requires careful planning and consideration. Consulting with a qualified estate planning attorney or financial advisor is essential to ensure the trust is structured correctly and aligned with your specific goals and objectives. Additionally, tax laws and regulations may change over time, so staying informed about any updates that might impact the implementation or benefits of a PRT is crucial.