Interlocking Asset Protection

Description: Interlocking asset protection.

HOH client: Real Estate Investor

Key issues: Create trust to take title to key real estate investment, arrange §1031 like-kind exchange.

A real estate investor was suffering from health problems. There was no clear plan to pay for his rapidly-increasing medical expenses and most of his money was tied up in underperforming multifamily investment real estate. Because of the investor’s uncertain state of health, title to this key asset was transferred to a trust. Holm & O’Hara LLP attorneys then worked with the trustee and other professionals to execute a §1031 like-kind exchange in which the original investment property was sold, several NNN replacement properties purchased and capital gains taxes deferred. This set of transactions nearly doubled the client’s income. In addition, the trust structure streamlined the investor’s holdings and avoided the probate process.

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