Qualified Personal Residence (QPRT): Data Input Fields

[Kathleen Reynolds]

#4769

Enter the appropriate values into the data input fields for this calculation model.

• Transfer Date: Enter 1 to 12 to indicate the month for the transfer date and then enter the year of the transfer (mm/yyyy). See Transition Period Notes.
• §7520 Rate: The program automatically displays three allowable 120% Midterm Applicable Federal Interest Rates (the current month and two preceding months) and places the rate that is most favorable in this input. You can override the program’s value by entering another rate. In which case, the phrase “Invalid §7520 Rate” appears. In some cases, 30% will appear as a rate. Thirty percent is the default value that appears when there is not a current AFR available for the chosen month. Download or manually update your AFR table. Check our web site at brentmark.com for an updated list of AFR Rates.
• Principal: Enter the fair market value of the assets placed in the trust.
• Grantor’s Current Age: Enter a value from 0 to 109 to indicate the age of the person whose life is being used to measure the term of the trust.
• Second Age (0 if None): Enter a value from 0 to 109 to indicate the age of the second person whose life is also being used to measure the term of the trust.
• Term of Trust: Enter the number of years the trust will provide income to the grantor.
• After-Tax Growth Rate: Enter the after-tax growth rate of the trust assets.
• Combined Death Tax Bracket: Enter a bracket which takes into account both the state and federal death taxes.

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IMPORTANT NOTE: Mortality table 2010CM was included in version 2022.10 of the software. Table 2010CM reflects longer life expectancies than table 2000CM, and will generally result in life interests worth more, while remainder interests worth less. Once finalized, the new 2010CM table will go in effect on the first day of the first month after regulations have been finalized. If you have a prior version of the software, it is advised to update to the latest version before the transition period ends (see below).

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