The executor of an estate and the beneficiary of the estate in a trust are also considered related parties. A taxpayer can sell a property to a related party and acquire like-kind replacement property from a non-related party without violating 1031 rules, however, both parties must hold the respective properties for a minimum of 2 years to qualify.The IRS has offered several private letter rulings which may dispose of the 2 year holding period for the related buyer.
A taxpayer cannot SELL to a related party and buy property from a related party unless both parties are completing their own 1031 Exchange or can prove that the transaction was not completed to avoid taxes. A taxpayer cannot sell to an unrelated party and buy from a related party. The IRS has issued Revenue Ruling 2002-83 which describes its position on related party exchanges. Click here for the document.