For instance, let’s say something bad occurs at a rental property (i.e. wrongful death, fire, bad drug deal...).

But those are often involved in a lengthy, bureaucratic selling process, which is, like, death to wholesalers. 

death in the family?

Obviously, he is scared to death, because he is not sure how much he stands to lose.

Set up your estate to liquidate upon your death, and give the kids equal shares of the profits. 

I don't wholesale though not into being near Death, Divorce, Despair.

The taxable gain will be paid at the end of the 30 year deferral period, while the 1031 Exchange allows you to continually defer the tax and then the investor generally receives a full step-up in cost basis upon their death so that the taxable gain completely disappears.  

I got death and legal threats.

If properly drafted, the house would still be part of her taxable estate, and as such, upon death, you would get a step up in basis.I have some advanced trust and estate planning with my clients, as many other professionals do as well.

@Wayne Brooks so pretty much what she told me was, "we met with the lawyer and he told us to get her mom's death certificate so we went to her sister's house and she is already in the process of becoming executor of the estate.