QPRT Mortality Calculator 2026
QPRT mortality calculator estimates the gift-tax discount on a Qualified Personal Residence Trust under IRC §2702, the probability the grantor dies within the trust term (which pulls the home back into the estate), and post-term fair-market rent owed to remainder beneficiaries.
| Home fair market value | — |
| Retained interest value (term + reversion) | — |
| Remainder interest (taxable gift) | — |
| Gift discount vs outright | — |
| Probability grantor dies within term | — |
| Projected home value at term end | — |
| Estate value removed (if grantor survives) | — |
| Annual post-term rent obligation | — |
A Qualified Personal Residence Trust (QPRT) lets a homeowner transfer a residence to heirs at a discounted gift-tax value while retaining the right to live in it for a set term. The discount comes from valuing the grantor's "retained term interest" and "reversion" under IRC §2702 — the larger those, the smaller the taxable gift. Last updated 2026.
How the QPRT Discount Is Calculated
The taxable gift equals the home's fair market value minus the present value of the grantor's retained term interest and the contingent reversion (the home reverts back if the grantor dies during the term). Treasury Regulation §25.2702-5(c) prescribes the actuarial method using the IRC §7520 rate and the grantor's age. Higher §7520 rates produce bigger discounts; younger grantors with longer terms get the biggest discounts but face higher mortality risk.
Mortality Risk — The QPRT Trap
If the grantor dies during the QPRT term, the entire residence is pulled back into the estate at date-of-death value under IRC §2036 — wiping out all gift-tax savings. A 65-year-old picking a 15-year term has roughly a 30-35% chance of dying within term. Estate planners typically split residences across two QPRTs of different terms (e.g., 8 and 12 years) to diversify mortality risk.
Post-Term Rent Obligation
After the term ends, the residence belongs to the remainder beneficiaries (usually children or a continuing trust). The grantor must then pay fair-market rent to keep living there, or the IRS may argue the original transfer was not bona fide. Paying rent is actually a feature, not a bug — every rent dollar shifts more wealth out of the grantor's estate without using additional gift exemption.
Sources and References
This calculator follows: IRC §2702 (special valuation rules for transfers in trust), Treasury Reg §25.2702-5 (qualified personal residence trust requirements), IRS §7520 monthly rate tables, and IRS actuarial mortality Table 2010CM. Always confirm current §7520 rate with the IRS and consult a qualified estate-planning attorney before funding a QPRT.
Last updated May 2026. Sources cited in tool output.