Qualified Personal Residence Trust (QPRT) Calculator

Personal Information

Grantor’s Age

Marital Status

State of Residence

Property Details

Type of Residence

Fair Market Value of Residence ($)

Existing Mortgage Balance ($)

Trust Details

QPRT Term (Years)

Number of Remainder Beneficiaries

Relationship to Grantor

Tax Considerations

Federal Gift and Estate Tax Exemption Amount ($)

Federal Gift and Estate Tax Rate (%)

Applicable Federal Rate (AFR) (%)

Property Appreciation Assumptions

Expected Annual Appreciation Rate (%)

Additional Considerations

Professional Fees ($)

Results

Gift Tax Valuation

Estate Tax Impact

Heir Benefit Analysis

Cash Flow Considerations

Tax Compliance Considerations

AI Suggestions

Disclaimer: This calculator provides estimates for informational purposes only and does not constitute legal, tax, or financial advice. QPRTs involve complex regulations and risks. Please consult a qualified attorney or tax professional for personalized guidance.

Data Privacy: All data entered is confidential and will not be stored or shared without your consent.

Frequently Asked Questions

What is a Qualified Personal Residence Trust (QPRT)?

A QPRT is an irrevocable trust that allows the transfer of a personal residence to beneficiaries at a discounted gift tax value while the grantor retains the right to live in the home for a specified term.

What are the benefits of establishing a QPRT?

A QPRT can significantly reduce gift and estate taxes by freezing the property’s value for tax purposes at the time of the transfer, allowing future appreciation to pass to heirs tax-free.

What happens if the grantor dies before the QPRT term ends?

If the grantor does not outlive the trust term, the property’s full market value is included in the taxable estate, and the intended tax benefits of the QPRT are not realized.

Can the grantor continue to live in the residence after the trust term?

Yes, but the grantor must pay fair market rent to the beneficiaries to avoid potential estate tax inclusion and maintain the integrity of the original gift.