Parents investing in kids’ real estate venture

[Alex Wong]

If parents are interested in investing in their kids’ real estate venture (2 parents, 2 kids), if their parents are going to leave the assets to their kids 50-50 when they pass, and if the kids plan to honor the parents obligations (a percentage of the principal), should the proceeds be structured as a gift or as a loan? One of the kids is married and plans on getting a postnuptial agreement due to different level of net worth.