Inherited property into a 1031 exchange

[Donnie Mac]

I have a unique situation with property owned by my Mother (still in her name). She currently owns a 10 acre parcel in rural Southwest MO with a 2,000 s.f. 3/2 SFR. Due to neglect, this house is a serious fixer-upper & will need a complete renovation. We both live in different states and at this time are not interested in flipping the house, but selling as-is. As a cause of the neglect, the home is currently unoccupied, not her primary residence and Mother is currently renting a home from a private landlord. My brother & I (the only benefactors) are trying to help her do some estate planning and want the best strategy that makes the most financial sense. A 1031 Exchange on the surface seems like a good option that we could then roll into an additional investment property for her to occupy (house-hack). If my Brother and I can use the proceeds to purchase say- a duplex property, Mom can live on one-half, we can rent the other half out & it will save her a large portion of her fixed-income. The main goals with selling the property are to: 1.) shelter the proceeds from sales/inheritance tax 2.) alleviate the monthly expenditure to an outside landlord 3.) provide a long-term investment for both siblings 4.) shelter (by transferring of title) what has become Mom's sole asset from being garnished should she need long-term care (nursing home, etc.). We are anticipating a sell price of $75k-$90k that can then be used as a down-payment for a rentable property.

    Here are my questions:

1.)  If we sell the house & transfer it into our names, do we need to transfer Title before the sale/1031 Exchange, or can this be done after?

2.) By selling the home and purchasing a home for her to "rent", are there any problems created with 1031?  I am assuming since the property will be in our names and not hers, we will not run into primary residence issues with 1031?

3.) The plan is most likely to sell the existing property and invest the proceeds in a different state- does this make any difference?

4.) In transferring the property to the sibling's names', what is the timeframe that the assets will be protected from garnishing from long-term care, etc.?  I know each state is different.

I am sure a lot of these questions would be best dealt with a financial advisor/estate planner, but this seems like a good opportunity for my brother and I to begin a  portfolio of long-term investing that will benefit everyone much more than the traditional sale of property with sales taxes paid and put into an account.  Thanks in advance for all of the help, go easy on me, it is my very first post!