A qualified personal-residence trust allows you to give your home to your children and avoid estate taxes.
If you find yourself in this situation, a qualified personal-residence trust can be a helpful tool in your estate planning. With a properly established QPRT, you can give your home to your children, continue to live in it for a period of time, remove it from your estate and protect the property from estate taxes. The IRS does not require the residence to be your primary residence, only a personal residence.