Don’t Be This Guy: The Hidden Costs of Ignoring Transitional Real Estate Wealth Planning

Here’s a little fictional tale of caution put together rooted in experience

Meet Tom.

In his prime, Tom was unstoppable -- A sharp, driven real estate entrepreneur who thrived on the thrill of every deal and the pride of building an enviable portfolio of properties.

His identity? Modest, yet still inextricably linked to his success. And as he got older, Tom made sure everyone knew that age was just a number, that he was still 'the guy' at the club, swapping stories with peers and younger members."

Tom figured he’d eventually hand the reins to his kids. But there was a problem: his kids weren’t interested.

Two of them had built thriving careers and families on opposite coasts, and the third, well… let’s just say Tom couldn’t trust him to handle complicated real estate that represented the family’s legacy.

Still, Tom was sure it would work out... Although with each passing year, he increasingly knew he’d have to figure it out once and for all. Someday.

Then life threw a curveball. At 72, Tom’s mind began to slip. His kids noticed first. His sharpness dulled, his decisions less certain, and his trademark discipline around daily routines diminished.

Then the diagnosis came: dementia. Suddenly, what Tom had built was at risk. His wife, who had never been involved in the day-to-day, was overwhelmed. The two capable kids, juggling their own careers and families, faced the daunting task of managing properties they knew little about. The third? Suddenly confrontational.

The solution? Sell. Fast.

But that urgency came with a heavy price. For months the family endured avoidable intra-family conflict capped by nearly $1 million in taxes that could have been deferred. A lifetime of wealth-building, chipped away in an instant.

Tom’s wife was left with less income, fewer options, and a family burdened with resentment that things ended up this way. All because Tom didn’t take the time to plan. He didn’t know about Transitional Real Estate Wealth (TREW) planning options like Delaware Statutory Trusts (DSTs) that could have preserved his legacy.

Or maybe he did, but his pride and procrastination got in the way.

Don’t be Tom. Ignoring the future doesn’t make it go away. Transitional real estate wealth management isn’t about giving up control, it’s about making sure your life’s work supports you and your family long after you’ve stepped back.

Planning isn’t just wise; it’s necessary.

Is it time to rethink your approach? Explore what’s possible before it’s too late.

---

This is not an offer or solicitation to buy or sell any securities. 

Some of the risks related to investing in commercial real estate include, but are not limited to: market risks such as local property supply and demand conditions; tenants’ inability to pay rent; tenant turnover; inflation and other increases in operating costs; adverse changes in laws and regulations; relative illiquidity of real estate investments; changing market demographics; acts of God such as earthquakes, floods or other uninsured losses; interest rate fluctuations; and availability of financing. Investments in real estate or real estate securities are not guaranteed and have the potential to suffer losses.

This site provides brief and general description of certain tax strategies including Opportunity Zones, Sections 1031, 1033, and 721 Exchanges. There are various risks related to purchasing securities as part of any planning strategy, including tax complexity, illiquidity and restrictions on ownership and transfer. RCX Capital Group and its representatives do not provide Tax Advice. Because each prospective investor’s tax implications are different, all prospective investors should consult with their tax advisors.