Severing land from a SFH for estate planning

[Nathan Lee]

Land is separate for property taxation and for depreciation schedules.  I’m sure it can be done somehow.  

At issue is whether I can exceed the $15,000 annual gift exclusion to my kids by essentially making the properties functionally unmarketable by separating the two.   (Would you buy a house if you didn’t own the land and had to pay a variable ground lease?)

If a sever can’t be done, an easement from another party could serve the same purpose.   (One child owns the house, the Trustee of my trust owns an easement around the entire perimeter, for example)

I would think a very good argument could be made that the house is worth only 30 percent of its previous value.  

Obviously, heirs with a common interest would be able to rejoin the properties for their benefit.  But a third party would take no such risk.  

Thoughts?