Your home is usually the largest asset your estate holds, which means the real estate decisions your family makes after a loss can shape their finances for decades. This guide covers the real estate side of trusts, probate, wills, and capital gains, and how Michael works closely with tax advisors, trust and estate attorneys, and financial advisors to build, protect, and transfer generational wealth.
Wiz's tip
Designate one family member as the point of contact for the real estate process. One clear communicator reduces the confusion that estate transitions can create for everyone else.
The steps, in order
01
Get the documents in order
Locate the will, trust, deeds, insurance policies, and bank records. Knowing where the documents live, and that they are current, is the foundation of every estate decision that follows.
02
Understand how the home passes
A home titled in a trust can pass to heirs outside probate, while a home held in a name alone typically goes through probate. A trust and estate attorney maps the path for your specific situation.
03
Understand stepped-up basis and capital gains
Heirs generally receive an inherited home at its stepped-up basis, the value on the date of death, which often means far less capital gains tax than families fear. Knowing the number changes the sell, keep, or rent decision.
04
Consider a 1031 exchange for investment properties
For rental or investment properties, a 1031 exchange can defer capital gains when one property is sold and a like-kind replacement is purchased. Timing rules are strict, so planning starts early.
05
Build a Complete Legacy Plan with your team
Michael consults with your tax advisor, trust and estate attorney, and financial advisor so the home, the proceeds, and the family's goals all point the same direction. The result is a plan, not a hope.
Trusts, probate, and wills: the real estate difference
A will names who inherits the home. A trust can control how and when they inherit it, and can keep the home out of probate entirely. For real estate, the difference is practical: probate can take months and is a public process, while a trust passes privately and on the timeline the family chose. This is attorney territory, and Michael works hand in hand with trust and estate attorneys so the real estate side of the plan is set up the way the documents intend.
Capital gains and stepped-up basis
When an heir sells an inherited home, capital gains are generally figured from the stepped-up basis, the fair market value on the date of the original owner's death, not what the owner originally paid decades ago. That single rule is why inherited homes often sell with far less tax than heirs expect. The tax question should never decide the family question alone, but it belongs in the conversation, and a tax advisor plus a planning advisor will make sure the sale is structured correctly.
How 1031 exchanges fit the plan
For investment properties, a 1031 exchange lets a property owner sell one investment and buy another like-kind property while deferring capital gains tax. Combined with a Delaware Statutory Trust, an exchange can even turn an active landlord into a passive owner. The exchange has strict identification and closing deadlines under IRS rules, which is why Michael consults on the structure long before the listing goes live.
The team approach
As a Certified Real Estate Planning Advisor, Michael brings the specialists together: tax advisors for the capital gains picture, trust and estate attorneys for the documents, and financial advisors for the long-term plan. His role is to make sure the family home, often the largest asset in the room, is handled in a way that serves the whole plan. The result for the family is fewer surprises, less stress, and a legacy that is protected, not eroded.