Estate & Trusts calculator
Qualified Personal Residence Trust (QPRT) Calculator
How much future home growth may pass to family if the trust works as planned?
What this tool helps you answer
How much future home growth may pass to family if the trust works as planned?
A QPRT transfers a residence while the grantor retains the right to occupy it for a stated term. The potential estate-planning benefit comes with meaningful mortality, housing, tax, liquidity, and post-term occupancy tradeoffs that a gift-value estimate alone cannot capture.
Transparent method
How the estimate works
See how the estimate is calculated
Project the residence value over the retained term using the entered appreciation assumption and current property value.
Illustrate the economic effect of the retained occupancy term and current Section 7520 rate without pretending to replace the IRS actuarial valuation tables.
Compare the projected future property value with the assumed taxable gift and consider whether post-term rent and continued occupancy are realistic.
What to check before acting on the result
How to read it
- The projected future value shows the appreciation at stake; it is not the same as the reportable gift value.
- A longer retained term may reduce the actuarial gift but increases the chance the grantor dies before the term ends.
- A mortgage, major improvements, sale during the term, or inability to pay market rent can materially change the strategy.
Not included
- Exact actuarial gift valuation or preparation of a gift-tax return
- Grantor mortality probabilities or estate inclusion calculations
- Mortgage amortization, property taxes, maintenance, insurance, or capital improvements
- State homestead, creditor, reassessment, property-tax, or trust-law consequences
Common questions
Frequently asked questions
What property can be placed in a QPRT?
A QPRT is designed for a personal residence and must satisfy detailed qualification rules. Vacation homes and associated property can raise additional use and qualification questions for counsel.
What happens when the QPRT term ends?
The residence generally passes according to the trust terms. If the grantor continues living there, a documented market-rate lease is commonly part of the planning discussion.
What if the grantor dies during the QPRT term?
The residence may be brought back into the grantor’s taxable estate, reducing or eliminating the expected estate-tax benefit. This tool does not price that mortality risk.
Does a QPRT preserve the income-tax basis step-up?
Not necessarily. Moving appreciated property out of the estate can trade a potential estate-tax benefit for a less favorable income-tax basis result, which should be modeled before implementation.
Sources
Rules and references behind this calculator
Want the fine print? See sources, methods, and limits.