Can I 1031 exchange property held in a Title Holding Trust?
Yes, the Title Holding Trust is a fully revocable grantor trust that can be terminated, altered, amended or updated by the trustor and/or beneficiary at any point in time. It is also classified as a pass-thru entity and a disregarded entity. The property held in the Title Holding Trust is characterized for tax purposes as held by the underlying beneficiaries of the Title Holding Trust. A full or partial assignment of a beneficial interest in the Title Holding Trust is treated as a conveyance of the underlying property held in the Title Holding Trust.
