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 is $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.

propose gift strategy where each kid gets 300,000 and discuss the tax consequences of that strategy. any asset must be divided equally between the 3 children