16.) Ricardo has a gross estate of $10.8 million. He wants to gift some property to his son Laredo to reduce the value of his gross estate at death. Which property should Ricardo gift?

1. A vacation home worth $600,000 that Ricardo inherited from his mother at a basis of $100.000. Laredo and his family vacation there every year and would never sell the home.
2. Four lakefront cottages that Ricardo bought for $150,000, which he owns and manages. The cottages were recently appraised at $600,000. Ricardo and his wife do not want to manage the cottages after Ricardo dies, and they plan to sell them soon after his death.
3. An investment in undeveloped land valued at $600,000 that Ricardo purchased for $700,000