1031 exchange - related party involving trust

Taxpayer is selling his real estate in a 1031 deferred exchange. As one of his replacement properties, he has his eye on a rental property that is held in his mother's trust.

This trust is an irrevocable trust. His mother is the grantor, trustee and beneficiary. He is a successor trustee and successor beneficiary.

I have reviewed the relationships listed in Sec 267(b). I do not see a direct relationship here.

However, I am not sure if either:
1. There is an indirect relationship due to him being a successor beneficiary, or
2. If the trust, with mother as a trustee, is an indirect 'member of the family'.

Will the property be held by him for at least 2 years?

Yes. But the 2-year requirement is on both parties. The mother's trust will not be holding his relinquished property for 2 years. That property is going to a 3rd party.

This case held a contingent beneficiary is still a beneficiary.

https://casetext.com/case/wyly-v-united-states

Thank you, Pitch78. Great cite.

Contrary to the taxpayer's agrument, the "remoteness" rule applicable under §§170 and 2055 has no impact on the entirely separate income tax provision set forth in §267. Neither §170 nor §2055 contains a cross reference to §267 and, in the absence of clear congressional intent to the contrary, there is no justification for interpreting the sections in pari materia. In fact, the existence of the concept of remoteness in §§170 and 2055 militates against the notion that a similar concept should be applied in §267 where no reference is made in the statute to such concept. The congressional failure to insert a "remote contingent interest" rule into the attribution rules of §267 cannot be considered as merely the product of oversight. We must, therefore, reject the taxpayers' attempt to rewrite §267 to exclude from consideration beneficiaries which they describe as having an actuarially insignificant chance of sharing in the trust property at some future date.