A. The answer is quite simple - do nothing!
Just keep living in your home and die there, assume your estate is below the Unified Federal Estate Gift and Estate Tax exemption amount ($5.46 million for 2016), your home's tax basis will be stepped up to fair market value as of the date of death.
In this way, neither you nor your children will pay any capital gain tax on all of the appreciation on the house. Also, because the value is below $5.46 million, there will be no federal estate tax either.
When your children sell the house later, their tax basis to calculate the gain or loss on the sale will be the home's fair market value at the time of your death.