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Multidisciplinary Valuation and Corporate Advisory Firm Transparently Serving the Full Range of Attorneys, Asset Managers, CFOs, and CPAs TM

NAV Valuation & Advisory LLC - Alternative Investment Valuation & Financial Advisory Firm

Alternative Investment Valuation and Financial Advisory Firm Transparently Serving the Full Range of Asset Managers, Attorneys, CFOs, and CPAsTM

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Justin Kuczmarski,

Lease Valuation - QPRT Trusts

NAV analyzes and values lease payments for qualified personal residence trusts, or QPRTs.

A QPRT remains an effective gift/estate planning technique. When structured correctly with tax CPAs and tax attorneys' help, a QPRT will minimize the grantor’s estate. How? The QPRT serves to "freeze the property value" of the grantor taxpayer’s residence, whether it is a primary residence or vacation home. The value is set at the time the grantor establishes the QPRT.

The end of a QPRT often creates a situation where the grantor may lease the property back from the beneficiaries. The catch: the lease payments require an arm's-length lease payment. A defendable, third-party valuation helps substantiate the arm's-length payment.


How We Assist Clients In QPRT Lease Valuations


NAV's team can help with both informal analysis and formal valuation opinions. We research comparable market data on real estate trends and utilize our valuation expertise with IRS tax opinions to deliver a range of reporting options from spreadsheet support to a limited or detailed report.

Careful consideration is required, and we work alongside seasoned tax attorneys in the review, analysis, and valuation of these lease payments. 

Our analysis can be utilized in tax appraisals, financial reporting valuations, fund valuations, and litigation support. 

Please contact us for more information.