1031: Rent to Child, then give in Inheritance to that child?

[Uzair Syed]

Hi,

I've read prior posts about permissibility of renting a 1031 exchange property to family members (as long as it is fair market rent and well-documented).

Is it permissible for the parents to leave the property in inheritance to the child that was renting the property from them?

Ex: Parents do a 1031 exchange of a multifamily home to a SFR (or commercial property), which they rent to a child at FMV. Then that property is designated as inheritance for that child who is renting it.

Is that allowed?

Thank you