Participant has life insurance and real property in his QRP account. I know the life insurance cannot be rolled into an IRA. How is he to treat the real property? More specifically, how is it characterized as property in an IRA? What documents are needed to do this?

You will need to find a custodian who will hold real property. There are issues regarding valuation of the property and some EPA rules which make many Custodians of self-directed IRAs hesitant to allow it as an investment option.