Wilmington Trust Corporation

03/05/2019 | Press release | Distributed by Public on 03/05/2019 09:49

Wilmington Trust Expands Escrow Services with Designation as Qualified Intermediary for 1031 Exchanges

Industry veteran David Gorenberg hired to lead product development for 1031 Like-Kind Exchanges


WILMINGTON, DEL-Wilmington Trust, N.A. expanded its suite of escrow services to operate as a qualified intermediary for the facilitation of Section 1031 like-kind exchanges. In an effort to address the growing demand for 1031 like-kind exchanges and to help clients navigate changes made by the tax reform act, Wilmington Trust hired industry professional David Gorenberg to lead product development for the like-kind exchange business. Under Section 1031 of the Internal Revenue Code, individuals or businesses may exchange qualifying property for like-kind replacement property, and defer up to 100 percent of the capital gains and depreciation recapture taxes that would otherwise be owed on the sale of the property. A majority of like-kind exchange transactions require a qualified intermediary to establish accounts to hold the exchange funds until the transaction is complete. The Job Cuts and Tax Act of 2017 made significant changes to what type of assets can be placed in a 1031 like-kind exchange. As of Jan. 1, 2018, the only assets eligible for Section 1031 treatment are business or investment real estate. 'Becoming a qualified intermediary expands our role as a full-service solution provider in the like-kind exchange and escrow space,' said Jack Beeson, head of Wilmington Trust's Global Capital Markets division. 'We are very pleased to have David join our strong escrow services team to grow the 1031 business. Our clients will benefit from his deep expertise with like-kind exchanges.' Gorenberg comes to Wilmington Trust with more than 20 years of business management experience in financial services and real estate industries, holding leadership positions at several qualified intermediaries including six years as director and product manager of 1031 exchange services at Citibank. He also served as president of the Federation of Exchange Accommodators (FEA), the only national association for 1031 exchange professionals. 'It was a great opportunity to join the Wilmington Trust team and develop this QI service for the market,' said Gorenberg. 'The use of 1031s has steadily increased since the recession, and with the changes made by the tax reform act, clients in the real estate space need a trusted partner who can help them successfully execute an exchange. By offering our services as a QI and escrow agent, backed by our expertise in the escrow industry as well as our parent company M&T Bank Corporation, we are uniquely positioned to serve our clients.' Gorenberg is a regular speaker on 1031 exchange topics for industry organizations including FEA and the Real Estate Investment Securities Association (REISA), as well as at law and accounting firms around the country. He earned a Juris Doctor from Widener University School of Law, where he graduated cum laude. He also received a bachelor's degree in Political Science from Rider University. For more than a century, Wilmington Trust has been a leader in corporate trust services, serving on some of the largest and highest profile transactions. As a unique provider due to our non-creditor role in transactions, the company can act as a neutral, impartial trustee or agent, taking a creative and collaborative approach to transactions. Gorenberg is based at Wilmington Trust's headquarters located at 1100 N. Market St. in Wilmington, Del., and can be contacted at 302-636-6584.