The rehab budget will also be held back which would not make sense in her current situation if she is short on funds.

When you donate appreciated securities that you have held for more than one year, you can avoid paying capital gains tax on the appreciation.

You have to make sure they do quality work and communicate well, otherwise you're held hostage. 

My mother has a rental property she has held for about 15 years in Washington state and has rented it out for the first 12 of those years.

I assume (a risk, I know) that the original poster is referring to conditions at a parcel of real estate and the improvements thereon, and the ownership of the subject real estate is held by a land trust, probably an Illinois land trust (which is a specific type of trust, not one limited to real estate in Illinois or which itself is located in Illinois), and the poster assumed that his ownership interest was sheltered, or his liability limited.Are those assumptions accurate?

Does anyone have advice regarding doing a 1031 exchange, where the goal is to take title back as an individual and dissolve the LLC that the relinquished property was held in (without triggering a taxable event)?

Depending on the lender, short term rentals usually require the borrower to be considered an experienced investor which for some lenders means you have held an investment property for at least a year.

Now the buyer is being held liable for damages and commissions.

In fact, we are looking at a portfolio that has been held for 25 years. 

So, I provide equity capital under a type of JV Agreement with a Deed from the flipper held in escrow.