Bob, age 72, is a widower who owns a partial interest in a ski resort in Vermont. His ownership…

Bob, age 72, is a widower who owns a partial interest in a ski resort in Vermont. His ownership interest in the property is currently valued at $8 million. The ski resort continues to appreciate every year, and bob’s estate is now worth $10.5 million. Bob wants to remove this property from his gross estate, and he is contemplating making a gift of his interest to his son Tyler, a successful hedge fund manager. However, Bob realizes he may need the income from the property for the rest of his life. What planning technique will meet Bob’s objectives?

1. An installment sale
2. A gift lease-back
3. An outright gift of his shares in the ski resort to Tyler.
4. A private annuity