A family partnership (actually a multi-member LLC) has owned a property for many years and wishes to do a 1031 exchange. The LLC was owned 60% by dad and 20% each by two sons. Dad died earlier this year and his trust currently owns his LLC interest, but the son’s should be getting that interest transferred to them any day now (so each son will own the LLC 50%).
It seems that there is no issue doing a 1031 exchange since the LLC has owned the property for years; the partnership will continue on and there is no technical termination. I was just concerned that the ownership change may create some kind of wrinkle with meeting the holding period requirements.