Broker Check

Delaware Statutory Trusts (DSTs)

The primary benefits of Delaware Statutory Trusts include:

  • 1031 eligible

  • Deferral of Capital Gains tax

  • Timing 

  • Sizing

  • Potentially Increased Cash Flow

  • Non-recourse Debt

  • Pre-packaged

  • Institutional-Grade Assets

  • Diversification

  • Passive Ownership

1031-DST Estate Planning Advantages

  • The heir of your clients likely receives the DST interests at a step up in cost basis. 

  • So when the DST liquidates they will have little to no capital gain to pay. Also, DSTs don’t have management responsibilities, so it simplifies the investment for the heirs. 

  • Everyone wants the best possible scenario for their heirs before they pass. Investing in DST eliminates the opportunity for heirs to argue over what to do with an investment property when the owner passes away. The heirs continue to receive distributions from the investment, if any, and upon the sale of the property owned by the DST, each of the heirs can choose what to do with their inherited portion. One heir can continue to exchange the investment, while another can cell and receive cash proceeds. 

10 Reasons to Consider DSTs

1) Avoid Financial Obstacles

2) DSTs Make Great Back Up Properties

3) Avoid Taxable Gains on Boot

4) No Property Management Headaches

5) Diversification Benefits

6) Don’t Get Sidelined

7) Swap Till You Drop

8) Estate Planning Tool

9) Quality Properties and Leverage Options

10) Low Minimums