Identification and solution of common problems with the QPRTs


Many clients set up qualified personal residence trusts (QPRTs) in years past when the exemption was much lower and estate tax rates were higher. Back then, it often made sense for some clients to sacrifice the step-up in income tax basis that would otherwise result from holding a residence until death. QPRT planning was helpful in those earlier years when high interest rates reduced the value of the residual interest for gift tax purposes, allowing clients to get more value out of



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