Frank is $65$ years old and has three children. Frank wants to help his children financially and prefers to help them now rather than when he is dead. Frank is considering making a substantial gift to each child, approximately $$300,000$ to each. Frank owns the following assets that he would consider gifting:

Rental property worth $$300,000$ that generates $$30,000$ of rental income each year. Frank's income tax basis in the property $$50,000.$

Rental property worth $$250,000$ that generates $$20,000$ of rental income each year. Frank's income tax basis in the property is $$200,000.$

Rental property worth $$350,000$ that generates $$40,000$ of rental income each year. Frank's income tax basis in the property is $$100,000.$

Cash in bank account of $$200,000$

Frank has retirement income of $$100,000$ per year in addition to the rental income he receives. Frank lives a fairly modest lifestyle and is generally concerned with being financially independent and not getting himself into a situation where he cannot support himself.

Frank has come to you for advice about which assets he should consider gifting to the kids. He would like to know the tax consequences of any proposed gifts. His goal is to treat the kids equally. Please propose a gifting strategy to Frank and explain the tax consequences of the proposed gifts. Also discuss any other issues you think are relevant to Frank's situation.