Change my mind. "APARTMENTS SHOULD BE HANDED DOWN VIA YOUR WILL"

[Justin Hennig]

What's the best way to divest an apartment asset for an older owner who wants the best for their family is Option #1

1) hand down asset to children via a will

Other options:

2) Sell outright and pay taxes

3) Exchange into a 1031 fund (Merrill Lynch has a 1031 exchangeable index fund starting at $500k I believe)

4) Contract for deed, pay recapture now and taxes gradually (maybe 2nd best option).

[Michael Skoczylas]

As the others alluded to- there are many factors. 

1. What does the current owner want out of this? 

2. Is the current owner's estate going to be taxable? 

3. Does the current owner have the cash to pay taxes? 

4. Does the current owner need current cash or an income stream? 

Lots of options depending on what they want to accomplish, and the estate tax must be thought about if the investor may be taxable.