Gifting interest in an LLC

[Max Householder]

Does anyone have experience gifting an interest in a LLC?

My parents are thinking about buying a 2nd home and wanted to know if there was a way to do so such that they could gift it to my brother and I over time in a tax-efficient manner. His goal is that we would eventually own it outright and could to either sell it or rent it out as a vacation rental without having to wait for transfer on death were they to live another 30-40 years. Basically instead of gifting money over time, he could buy/control an asset right away that we could all use and then gift it to us incrementally.

My thought was he could fund an LLC with myself, my brother, and him as the partners in the LLC and then gift his interest over time at an amount that stays under the gift tax. Is this something that can be done? How would the tax basis of the property work? How would our initial interests in the LLC be treated taxwise?

Obviously we would work with a RE attorney/tax/attorney/cpa etc. if they decided to pursue this idea. I was just curious if anyone had done something similar. Thanks BP!