Who can be the trustee in a QPRT?


Well, anybody could be the trustee of QPERT, but normally, the initial trustee during the retain term will be the client, the donor, the person who created the QPERT and was gifting the house. When the term ends, and now, the actual ownership of the house reverts to the beneficiaries of the trust, or to the trust, itself, on behalf of the beneficiaries, it’s probably proper to name a new trustee, probably one of the beneficiaries, or a professional trustee, especially if the donor wants to remain in the house and is going to pay fair rental value to remain in the house.

Note: The Tax Cut and Jobs Act of 2017 signed into law in December 2017 increased the exemption amounts mentioned in these videos. The personal estate, gift, and generation-skipping tax lifetime exemption was increased to $11.18 million per person. The annual gift tax exclusion was increased to $15,000 per donee per year.

Both amounts are indexed for inflation and may increase year over year until December 31, 2025, when the law sunsets and reverts to 2017 values.