Why Legal Expertise Matters in a 1031 Exchange
A 1031 exchange is governed by the Internal Revenue Code and IRS regulations. The exchange agreement, assignment agreement, and escrow instructions are binding documents. The decisions made during your exchange have significant tax consequences that can last for decades.
Yet most qualified intermediaries are not attorneys. They are financial professionals or real estate specialists who have learned the mechanics of 1031 exchanges but do not have the legal training to identify and address the legal issues that arise in complex transactions.
What an Attorney-Led QI Provides
Document Review and Drafting Attorney Steve Wolterman reviews and drafts all exchange documents with legal precision. Every exchange agreement, assignment, and escrow instruction is prepared by a licensed attorney.
Legal Issue Identification Complex exchanges often involve legal issues that non-attorney QIs may miss: related party rules, partnership and LLC considerations, estate planning implications, and state-specific requirements. Steve identifies these issues before they become problems.
IRS Compliance The IRS has specific requirements for qualified intermediaries. Steve ensures that every exchange is structured to meet IRS safe harbor requirements and withstand scrutiny.
Coordination With Your Tax Advisor Steve works directly with your CPA and tax advisor to ensure that the exchange is properly reported on your tax return and that all documentation is in order.
The Certified Exchange Specialist Credential
In addition to being a licensed attorney, Steve Wolterman holds the Certified Exchange Specialist (CES) designation, the highest professional credential in the 1031 exchange industry. The CES is awarded by the Federation of Exchange Accommodators (FEA) and requires passing a rigorous examination and meeting ongoing continuing education requirements.
Free Consultation
Contact 1031 Federal Exchange today for a free consultation with attorney Steve Wolterman, CES. Call 513-586-6879 or fill out our contact form.
Author
Steve Wolterman, Esq., CES
Attorney and Certified Exchange Specialist with over 20 years of experience guiding real estate investors through 1031 exchanges nationwide. Member of the Federation of Exchange Accommodators (FEA).