QPRT (Qualified Personal Residence Trust)

Wealthy individuals can lower or zero-out an estate tax with a QPRT. A QPRT, if designed properly, can facilitate tax-free transfers of real estate or the proceeds from property sales. Depending on the prevailing interest rates when the QPRT is established, the QPRT transaction may involve a small or large gift. Taxes on the gift can be offset by applying a portion of the Lifetime Exemption to the QPRT transaction.