How a Qualified Personal Residence Trust Saves on Estate Tax

In episode 38, Lucas and Luna explore the Qualified Personal Residence Trust (QPRT), a powerful estate planning strategy that lets homeowners transfer a primary or secondary residence to heirs at a deep discount on the gift tax. They walk through a concrete example: a $2 million home placed in a QPRT with a 10-year retained term, a Section 7520 rate of 5.2 percent, and a resulting taxable gift of roughly $1.19 million — saving $324,000 in potential gift taxes versus an outright transfer. The hosts explain how the trust works, what happens if you outlive or die during the term, and the key trade-offs like losing the stepped-up basis. They also discuss why recent high Section 7520 rates make QPRTs especially attractive right now. No prior episode covered this specific trust structure. #QPRT #QualifiedPersonalResidenceTrust #EstatePlanning #GiftTax #RealEstate #Trusts #WealthTransfer #TaxStrategy #Section7520 #SteppedUpBasis #Finance #EstateTax #IrrevocableTrust #Housing #FamilyWealth #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo Keep every episode free: buymeacoffee.com/fexingo