QPRT Exit Strategy

Okay — you've sold your clients on the potential estate tax benefit to be achieved with a qualified personal residence trust (QPRT).¹ And you've explained that, with a married couple, the benefits can be even greater if each deeds only a 50 percent interest in the residence to a separate QPRT. Then, in addition to the valuation discount available for the QPRT, an additional fractional interest discount will be applied, thereby further reducing the taxable gift.