The sale will create a sizeable gain that I intend to 1031 to avoid taxes.It’s not clear to me how many properties I’m eligible to 1031 with the sale proceeds.

But equally important for you to think about is going to be the allocation of your net proceeds in the purchase. 

Any proceeds from the sale of the note can be added to the 1031 exchange account to allow for more tax deferral. 

Even though my wife is executrix, she shared the estate with two siblings and one thing she had to do before proceeding is she has to obtain a letter from her siblings that they had no objections to how the assets are distributed.

Wait until you're certain to build and not more than 18 months out to proceed.

They act as a neutral third party and are the ones who hold the proceeds and facilitate the transaction in accordance with IRS rules.

It's a strict 2-year requirement.As for strategies to avoid capital gains on the sale, if your client doesn't meet the ownership and use requirements for the Section 121 exclusion, they might explore other options such as:1031 Exchange: If the property is an investment property rather than a primary residence, your client could consider a 1031 exchange to defer capital gains tax by reinvesting the proceeds into another investment property.Installment Sale: If your client is willing to accept payments over time, they could consider structuring the sale as an installment sale, spreading the recognition of the gain over multiple tax years.Charitable Remainder Trust: If your client is charitably inclined, they could contribute the property to a charitable remainder trust, receive income from the trust for a certain period, and then have the remaining trust assets pass to charity upon their death, potentially reducing or eliminating capital gains tax.These are just a few options, and your client's specific financial situation and goals would need to be considered in determining the best approach.

We require a copy of your ID, proof of funds, and lender pre-approval letter to proceed with working with our team.

I am by no mean an expert on how to proceed, these are just a few options I would consider.

Erase everything in your plan concerning an LLC and proceed.