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I have a question:
If my primary residence is placed in a 10 year QPRT, with my adult children to inherit after the term ends, am I allowed to buy that same house back from them once they own it outright?
Are there any rules preventing me from purchasing it again?
I'm going off memory here, but if a house in a QPRT is sold before the term of the QPRT ends, the cash basically turns into an annuity for you for the remainder of the term, then to the kids when the term ends. I may be wrong on that, though, so others can correct me.
I'm thinking the best reason to buy back a house is if the house has some special non-tax significance and you want to distribute it in a way that is different than spelled out in the QPRT. Maybe an old family home or something.
You are better than me. I haven't done a QPRT in a decade and I can't see recommending one. But I also don't live in a red hot housing market. That's usually the only time it makes sense.
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I agree with all of this. I'm still just trying to figure out what OP is trying to accomplish. Any transaction is going to have to involve FMV as determined by a qualified appraisal. Assuming the appraisal is legitimate and accurate, I cannot see any benefit at all. On the down side, depending on the house's basis, there could be capital gains generated.