---

@Mike12321 wrote:

I don't understand how the transaction would be at his death for the remaining payments. Does the buyer have the title, or do the kids inherit the property until it is paid off?

---

The property would have been sold, so the buyer now owns the property.  The kids would just inherit the installment payments, including the tax on the profit.

So strictly from a tax perspective, this would probably be a silly thing to do.  It is subjecting the taxpayer and his children to taxable income, versus waiting until death and having a probable step-up in Basis.

Obviously there is more to life than taxes, so perhaps the taxpayer needs the money or thinks the value of the property will decrease.    But you should explain to the taxpayer that strictly from a tax viewpoint, it may not be a good idea.