Thanks a lot for your previous responses to my various
queries.

At this time my husband and I are considering taking advantage of the gift tax laws to transfer assets to our son and his wife. The asset in question is appreciated real estate which they are presently renting from us. I understand an appraisal is necessary before issuing a grant deed for a percentage ownership
equivalent to $ 40'000. max. per year. If we continue
this pattern in subsequent years, will it be necessary
to have appraisals each year, so the percentage reflects the latest and possibly changed value of the
property?

In our area with high real estate values, this process
may take quite a number of years before they are 100%
owners and we have successfully transferred an entire
asset without incurring capital gains tax on the appreciation. Do you have any other suggestions on
accomplishing this goal (we don't want to move into it
ourselves for two years!)?

Thanks very much.