re: Annual/Lifetime Gift Tax Exemptions

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Of course, in 40 years, the level may be even higher, and they may lose the benefit of holding it til death and granting their heirs their step up in basis. Or the step-up on basis may disappear entirely

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These are the age-old questions.

Gift it today, get all the future growth out of the estate, and your heirs don't get the step up. Or, leave it in, deal with estate tax, but heirs get the gift.

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family loans exist.

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If these intrigue you, then you should read up on SCINs (self-canceling installment note)

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I haven’t figured out how to employ an 18 month old in a way to justify $6,000 of compensation per year.

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You mentioned modeling... that's usually the best way to do this for very young children.

Since it's earned income you can actually pay them up to the amount of the standard deduction, you just have to make sure it is a legit wage, and not partially an implied gift.