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When the trust term is long, the value of the gift the corresponding
gift tax will be low. In contrast, when the trust term is short,
the value of the gift will be high and the gift tax high. In theory,
a Qualified Personal Residence Trust affords the greatest transfer
tax savings when the grantor is young and the trust term is long.
In fact, with a sufficiently long trust term there will be no gift
tax.
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