Frank Nitto is considering purchasing a parcel of income-producing real estate for $50,000. Frank lives in a common law state, files a joint income tax return with his spouse, and has four children all over age 25. Franks objectives regarding this property are:

to reduce taxation of the income by as much as possible while retaining an ownership interest

to have only a small portion of the real estate included in his gross estate

to incur no gift tax liability

Which one of the following statements is correct concerning the most appropriate form of titling for this real estate?

Frank should title the property in joint tenancy with right of survivorship with his spouse.

Frank should title the property in joint tenancy with right of survivorship with his children.

Frank should title the property in tenancy by the entirety with his spouse.

Frank should title the property as equal tenants in common with his children.