QPRT

Qualified Personal Residence Trusts are special house trusts designed to transfer principal residences to your kids while minimizing gift tax. The trustees must deed the house to the kids (or to trusts for them, depending on the language QPRT). The kids need to insure the house and lease it back to you and you need to pay fair rent. Sign a written lease. The kids should sign a document governing their ownership of the house to avoid issues later.