Gifting property to my children

[Lance Neighbors]

Hey guys! I hope you all are doing well! I have a huge question that I hope you all can help me answer. I have a financial plan to purchase a duplex each for my children when they turn 5 years old, hopefully have the property paid off when they turn 20, and dispense all Cashflow from the properties into their personal accounts monthly. With that being said, I know there are a lot of legal hoops I would need to jump through in order to do that successfully and I was wondering exactly how would I transfer the property over to them. Any help is appreciated!

[Lynnette E.]

I would put it in a family trust and have them identified as the beneficiaries.  You can also stipulate conditions for when the assets of the trust is distributed such as age, working or attending college, drug free, whatever.

Family or AB or ABC trusts  are easy taxwise, you put it on your personal income tax same as it was yours, because it is.  You manage it, can sell the assets or whatever in case the situation changes and you do not want to give it to them.  

Plan ahead, but leave options open.   Neighborhoods change, people may not grow as you want.