This technique is known as a Qualified Personal Residence Trust. The technique contemplates that you will give your home away after a period of time, say 25 years. The gift takes place in the present, so that the value of the gift is typically only a small fraction of the full value of the home, since the value is discounted by the value of your right to use the property during the term. If you live beyond the term of the trust, the property passes to your children or in a trust for them, escaping any other transfer taxes. If, however, you were to die during the term of the trust, the full value of the residence would be included in your estate.