Can a South Dakota asset protection trust hold real estate from another state? If so, can the real estate be sold in the trust and avoid capital gains or would a standard 1031 exchange be required to avoid the capital gains of the sale?
Yes, it can hold real estate from other jurisdictions. Short answer related to the tax question is that it can. However, it needs to be structured properly to accomplish this. *Not legal or tax advice. Educational purposes only.
There are laws that prohibit abuses of these strategies, but otherwise, no there are not specific laws that prohibit the use of irrevocable trusts and LLCs. Great question!
Can a South Dakota asset protection trust hold real estate from another state? If so, can the real estate be sold in the trust and avoid capital gains or would a standard 1031 exchange be required to avoid the capital gains of the sale?
Yes, it can hold real estate from other jurisdictions. Short answer related to the tax question is that it can. However, it needs to be structured properly to accomplish this.
*Not legal or tax advice. Educational purposes only.
thought a new law passed stopping these strategies?
There are laws that prohibit abuses of these strategies, but otherwise, no there are not specific laws that prohibit the use of irrevocable trusts and LLCs. Great question!