1031 Exchange Solutions for High-Net-Worth Investors
As a high-net-worth investor (HNWI), managing your real estate portfolio goes beyond acquiring new assets. You also have to consider other aspects like tax exposure, wealth preservation, and long-term flexibility. One strategy designed to help address these considerations is the 1031 exchange. Also called the like-kind exchange, this strategy can potentially allow you to defer capital gains taxes, diversify your portfolio, and even enjoy passive income.
How DSTs Can Complement a Traditional Real Estate Portfolio
Real estate remains a widely used investment option due to its perceived relative stability and the range of market sectors available. However, many investors maintain portfolios made up primarily of traditional, directly owned real estate. This concentration can introduce increased risk exposure and often requires ongoing, active management. For those seeking broader diversification or reduced management demands, alternative structures may be worth considering.
DST Market Trends Advisors Should Watch
Delaware Statutory Trusts (DSTs) are playing a growing role in tax-deferred real estate strategies.. While DSTs have long been used in 1031 exchanges, market forces are shaping new dynamics that are influencing how advisors and investors evaluate these structures.
Can You 1031 Out of a TIC?
Being a co-owner in a tenancy-in-common (TIC) can offer advantages, such as access to larger properties, but it may also introduce structural limitations. Investors seeking greater control or portfolio simplification may consider exiting a TIC interest. This raises an important question: can a TIC interest be exited through a 1031 exchange?
Making IPWM Part of Your Core Offering: Operational Integration Tips
Investment Property Wealth Management (IPWM) is no longer a niche service. It’s becoming an increasingly relevant capability, particularly for advisors working with clients who have substantial real estate holdings. For advisors looking to differentiate and add value, integrating IPWM into the core offering may offer a strategic opportunity.
How DST Investments May Support Estate Settlements
When someone passes away, their loved ones don’t only face grief and loss. Estate settlement can become a complicated legal and financial process, involving debt resolution, tax considerations, and asset distribution. Managing debts, resolving taxes, and distributing assets can become a burden. You do not want to leave this type of legacy to your loved ones.
How Fractional Real Estate May Support Multi-Generational Wealth Strategies
As families prepare for wealth transfer, advisors are increasingly called upon to help families create strategies that support preservation and grow capital across generations. Real estate continues to play a meaningful role in legacy portfolios —but traditional ownership models can present challenges. Management responsibilities, illiquidity, and concentrated risk often hinder long-term planning.
Using 1031 Exchanges for Succession Planning in Family-Owned Businesses
A family-owned business is often created with the goal of building a legacy and supporting future generations. However, succession planning can be a complex and sensitive undertaking. The stakes can be high, especially if real estate is part of your business’s assets. One strategy that may be used to defer capital gains taxes and align real estate holdings with long-term planning goals is the Section 1031 exchange.
Do Qualified Intermediaries Provide Audited Financial Statements?
1031 exchanges provide tax-deferral benefits that can support long-term portfolio growth and estate planning goals. However, in order to complete the like-kind swap, you’ll need to work with entities like a qualified intermediary or an accommodator. These are the third-party entities that hold your funds between the sale of your relinquished property and the purchase of your replacement property until a replacement property is acquired.
How UPREIT Transactions Can Help Mitigate Depreciation Recapture
While depreciation deductions are a standard and useful component of real estate tax planning, depreciation recapture can create a significant tax liability if a property is later sold at a gain. There are ways to mitigate this tax liability, however, and one of the strategies is the Umbrella Partnership Real Estate Investment Trust (UPREIT). UPREITs are structured to allow property owners to contribute real estate in exchange for operating partnership (OP) units—potentially avoiding a taxable sale at the time of contribution
