An Alternative to QPRTsAn Alternative to QPRTs
Transferring a personal residence to a qualified personal residence trust (QPRT) is a common estate-planning technique used to make an inexpensive gift of a residence to the next generation. QPRTs may be particularly attractive now. The bursting of the real estate bubble and economic downturn make it very tax-efficient to transfer a residence now, while values are depreciated. (See QPRTs Can Be a
Deborah V. Dunn, Alison E. Lothes & James J. Thibodeau
Transferring a personal residence to a qualified personal residence trust (QPRT) is a common estate-planning technique used to make an inexpensive gift of a residence to the next generation. QPRTs may be particularly attractive now. The bursting of the real estate bubble and economic downturn make it very tax-efficient to transfer a residence now, while values are depreciated. (See QPRTs Can Be a Good Deal Now)
Pursuant to Internal Revenue Code Section 2702, the QPRT reduces the value of the gift to the remaindermen by the value of the grantor's retained right to live in the residence for a term of years. The value of the gift made by funding a QPRT is further limited by the Internal R...
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