Paulo Aguilar, CFA, CAIA

For families with significant real estate holdings, estate planning challenges are rarely theoretical. They are structural.

For many real estate owners, estate planning becomes most complex at the point where tax strategy, income continuity, and family dynamics intersect.

Net asset value, or NAV, is often treated as a precise signal in passive real estate investing. It appears in quarterly reports, performance summaries, and, in some cases, liquidity discussions.

A 1031 exchange is often evaluated as a transaction tool. Investors sell a property, reinvest the proceeds, and defer taxes. That framing is incomplete.

Most failed or discounted business sales do not collapse because a buyer disappears. They unravel because financial issues surface late, when leverage has already shifted and options have narrowed.

Delaware Statutory Trusts (DSTs) are often discussed in shorthand. Passive income. Tax deferral. Institutional real estate. Those descriptions are not wrong, but they are incomplete.

Liquidity is one of the most misunderstood aspects of Delaware Statutory Trusts (DSTs). DSTs are intentionally illiquid to meet the requirements of passive ownership and 1031 exchange eligibility.

When Delaware Statutory Trusts are used as replacement property, the exchange timeline introduces a level of sequencing discipline that is often underestimated.

Learn the critical steps for a successful 1031 exchange to defer taxes and reinvest in like-kind properties with expert guidance from Wealthstone Group.