As you can see, It can sometimes be difficult to figure out where you are in your financial life, but you should consider your age, health and family medical history, and the value of all your assets and the likelihood that they will appreciate or continue to generate income as you age.

2) What type of asset do you wish to sell?

A 1031-TIC deal will only work with investment real estate. You can't sell use your own residence or a second home. You can use commercial or residential rental property. If you're looking to sell commercial assets or other highly appreciated illiquid assets, a PAT or CRT may work better for you. As I've mentioned in an earlier post, securities can be sold through a PAT, but not if they're in a restricted account like a 401K or an IRA.

3) Do you need income now, or later in retirement?

A 1031-TIC deal generally provides income immediately, but there are properties such as land deals which allow you the opportunity to accrue appreciation without taking income. A PAT and a CRT can provide income immediately, but income from either trust can also be delayed. In the case of a PAT, your receipt of the income can be delayed until you are 70 ½ years old.

4) Do you have an estate large enough to be subject to estate tax?

If you have an estate large enough to be subject to estate tax, a PAT or a CRT may work better for you than a 1031-TIC structure. With the PAT or the CRT, the asset is, for tax purposes, removed from your estate on account of you giving up control of it. Since the asset is no longer in your estate, it is no longer subject to estate tax when you die, even though, in the case of a PAT, the contents of the trust may pass to your heirs. They will also receive the assets gift tax, transfer tax and generation skipping tax free.