Hello, When you want to pay your children out of your real estate business, do you need to put them on the payroll just like a normal employee or is there a way to avoid paying tax, workmans comp and etc?

If it is medical personel, then I would think you want to be in an area with multiple hospitals or facilities like UTSW/Parkland/Scottish Rite/Children's area in Dallas.   

These are my father's properties to be passed down to his children. 

We did a lot of case studies including our story which was the use of a combination of sec 121 primary residence sales and 1031 exchanges to end up buying a 53 ft sailboat with tax free dollars and raising our 4 children on it for 10 years using cash flow from deferred tax in vacation rentals - never paying a penny in capital gains tax. 

So if owner occupant chooses to live in smallest unit the owner is generally not going to have a gaggle of children as there aren't extra bedrooms and they want to earn the greatest amount of rents from the other three. 

My father is interested in options that will set his children up for the future, as well as net him some hard-earned cash from equity now, which is where the long-distance assistance in managing the property comes in.From the responses I've received it seems like this is not the best way to go.

View report*This link comes directly from our calculators, based on information input by the member who posted.The owner of this house recently passed away and there are 3 children remaining who will decide on which offer they will accept to sell the house.I asked them about listing it with an agent and decided not to because it was suggested they do some updating of the house, which they don't want to do.They said the house was appraised for $150K and they are asking $167K.

In De I believe the first in line is children, then parents, then siblings, and that's as far as I know.  

Granny Hilda for example that constantly tells her grand children to put that evil box down (phone).

Children cause way more damage than pets do.