Webinar Replay – Tax-Efficient Solutions for Rental Property Transitions

Baby Boomers hold nearly $18.9 trillion in real estate and own more than half of all U.S. rental properties. For financial advisors, helping clients transition these holdings to the next generation is one of the most important conversations happening right now.

In this webinar, Hamilton Zanze’s Aaron Sagin, estate planning attorney Susan von Herrmann, and tax advisor Ed Hanley share tax-efficient strategies for navigating the transition while minimizing tax exposure and building generational wealth.

Your Speakers

Ed Hanley, Managing Director, CBIZ

Susan von Herrmann, Partner, Nutter McClennen & Fish

Aaron Sagin, Director, Investor Relations, Hamilton Zanze

Key Takeaways

Below is a summary of the key themes discussed. For the full conversation, including real-world examples, detailed tax scenarios, and the Q&A session, watch the full replay above.

The Pressures Facing Today’s Rental Property Owners

Many aging property owners are navigating real challenges that make holding onto rental properties increasingly difficult:

• Landlord fatigue and rising maintenance costs
• Regulatory challenges
• Complex family dynamics around succession
• Uncertainty about whether heirs can or want to manage properties

For advisors, understanding these pressures is the first step to guiding clients toward tax-efficient solutions that protect their wealth and simplify the transition for the next generation.

Tax-Efficient Transfer Strategies

Several tools can help property owners defer taxes and preserve more capital:

• 1031 exchanges allow owners to reinvest sale proceeds into like-kind properties while deferring capital gains taxes
• Direct 721 exchanges into a fund provide immediate access into professionally managed investment vehicles
• Step-up in basis can eliminate capital gains tax on prior appreciation for heirs
• Gifting to grantor trusts provides additional flexibility for high-net-worth clients

Building flexibility into any estate plan is key, as circumstances and tax laws evolve over time.

The Case for Working with a Multifamily Sponsor

Investing through a multifamily sponsor can solve many of the challenges rental property owners face:

• Removes the management burden from heirs
• Simplifies ownership transfers through a straightforward title change
• Turn hands-on rental property management into a passive income experience

Advice for Advisors

• Start the conversation early
• Build a cross-disciplinary team that includes tax specialists, estate planning attorneys, and real estate professionals
• Focus on naming trusted decision-makers rather than trying to plan for every contingency

Additional Resources

For Advisors:

• 1031 Solutions For Advisors: Learn how Hamilton Zanze helps advisors guide their clients through tax-efficient rental property transitions using 1031 exchanges.
• Advisor Education Center: Access our full suite of educational materials to help you advise clients on deferring taxes and earning passive income when selling rental properties.

For Investors:

• 1031 Exchange: Learn how rental property owners can defer capital gains taxes and transition into professionally managed real estate investments through a 1031 exchange, plus download our educational guide.

Contact Us

Aaron Sagin
Director, Investor Relations
[email protected]