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(D) Special rules for estates and trusts
For purposes of determining whether any interest paid or
accrued by an estate or trust is qualified residence interest,
any residence held by such estate or trust shall be treated as
a qualified residence of such estate or trust if such estate or
trust establishes that such residence is a qualified residence
of a beneficiary who has a present interest in such estate or
trust or an interest in the residuary of such estate or trust.
The beneficiary of the trust (the resident beneficiary) who is living in, taking care of, and paying for the property is entitled to deduct mortgage interest and property taxes.