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Estate Planning Strategies

Permanently defer taxes
with a step up in cost basis

Image by Gabby Orcutt
Smiling Family

Permanently Defer Tax on Real Estate

Step Up In Cost Basis

Sale Price

Capital Gains

&

Depreciation

Purchase price (cost basis)

Business Woman with Laptop

Upon the passing of her parents, Jane would receive a "stepped-up cost basis" reflecting the then-current market value of the property.  If she sold the property at the time of inheritance no capital gains would be recognized.

Happy Couple

Arthur and Linda would like to minimize their family tax exposure on the sale of real estate.

A 1031 exchange can defer taxes and ultimately provide a stepped-up cost basis for their daughter Jane.

Step Up In Cost Basis

Empty Factory

To remedy the situation, they sold their industrial property...

...and completed a 1031, purchasing shares of a Delaware Statutory Trust

Fractional Shares

for Multiple Beneficiaries

Dancing Couple

Marty and Sally owned an industrial warehouse that had appreciated in value.  They were concerned that their two children might have differing opinions on what to do with the property upon their passing and wanted to simplify their options.  

Young Business Colleagues

Each sibling was assigned DST shares as beneficiaries.  Upon the passing of their parents, they will continue to own their proportionate shares until the dissolution of the DST.  At that time, they could each go their separate ways with their cash proceeds.