A wealthy family is concerned about their future income and estate tax bills. Their annual income exceeds $1M, the estate is worth approx. $15M. They want to begin gifting to their daughter in a manner that will minimize their future income and estate taxes. They want to know how this will affect their 2015 taxes and the taxes of their daughter. They are also wondering if it would make more sense to put their daughter on the payroll of their S-corporation and pay some or all of her gift as a salary during 2015. Their goal is to minimize the total amount of tax liability paid by the family now and in the future. The daughter has no income, is unmarried, has no dependents, and is the family's only child. I need to provide three recommendation for the family to minimize their total tax liability, provide two pros and two cons for each recommendation. In addition, I need to explain the tax benefit the gifting will provide relative to other alternatives (including taking no action) and explain my stance on the family's proposed solution of putting their daughter on the corporate payroll (S-corp the family owns).