Lee and his son, Bruno, bought an apartment building in Phoenix in a distressed sale for $2,500,000. The building is significantly undervalued. Lee wants income for his life and Bruno wants an investment that he can benefit from later in life. Lee is paying his share, $1,500,000, as a life estate and Bruno is paying the other $1,000,000.
Since both are happy with the arrangement, they asked you to handle the transaction. What are your comments to them and explain why?