The Curious Case of QPRTs: Underused and Underappreciated

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Qualified personal residence trusts were added to the Internal Revenue Code by Congress to permit parents to pass to their heirs what is often the emotionally most significant asset at a reduced estate and gift tax cost. However, QPRTs are still underused more than 20 years after they were added to the law. In addition to their obvious transfer tax benefits, they are an excellent way to make the home equity much less attractive to a future creditor.


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