The father would like to find the best way to help his (~40 year old) daughter with approximately $200k in home loans.
Without (yet) seeking professional advice, he has loosely considered:
- Gifting her the money.
- Loaning her the money at 2% interest, and allowing her to pay him conventionally, perhaps forgiving the loan at some later point in time (or upon his death).
- Buying the home and place it in trust for the daughter and her children.
The daughter is unmarried and has two children, one 6 years old and the other 22 years old.
From a U.S. federal tax liability point of view (for everyone concerned), what would be the best option here? What concerns would be involved?