Ashley Stefan Explains Common 1031 Exchange Legal Pitfalls in Wealth Management

First American Exchange Company Divisional Counsel Ashley Stefan recently authored an article for Wealth Management exploring the common legal pitfalls that can disrupt or derail a 1031 exchange. Ashley explains why early planning, detailed documentation, and careful coordination with a qualified intermediary are essential to preserving the intended tax benefits of an exchange. She highlights key issues investors and advisors should watch for, including constructive receipt, disqualified intermediaries, strict 45-day and 180-day deadlines, identification errors, ownership structure concerns, related-party transactions, and miscalculating value, debt, and equity. Ashley emphasizes that while 1031 exchanges can be a powerful tool for tax deferral and portfolio management, success depends on understanding the rules and working closely with tax, legal, and exchange professionals before starting the transaction.

Read the full article on Wealth Management’s website.