My father (retired) is currently planning to move his assets into an irrevocable trust (for his kids) for purposes of estate planning and Medicaid planning. But, one of his assets is an investment in a real estate DST which was recent sold and so he needs to roll the money from the sale into another 1031 to avoid the capital gains. The real estate broker warned us that once the 1031 is done we will not be able to transfer it into the trust for 2 years or it will invalidate the 1031 as the IRS requires the investment to remain in your name for 2 years. So, even if he moves all of his other assets into the irrevocable trust, this asset will need to remain outside for 2 years (and impacts Medicaid planning). Does anyone have any advice? Is it possible to transfer a 1031 investment into irrevocable trust within 2 years? Any other options? If it makes a difference, we do have the option to pull 70 percent of the investment out into cash without a tax hit due to a 1031 + Refi. But that still leaves 30% in the 1031 with the same 2 year issue. Any advice is appreciated. Thanks.
Submitted March 20, 2018 at 08:37AM by aripy http://ift.tt/2G6Xll7
