Gifting your home directly to a child may not be the best course of action since it opens up the equity in the house to your child’s creditors. Additionally, if your children plan to sell the home after you pass away, they may have to pay substantial capital gains. One way to ensure that you can legally remain in the house and your heirs avoid capital gains tax is to retain a life estate. Placing the house in an irrevocable trust might be a better option if you want to maintain a greater level of control or foresee any possibility of moving in the future.