Delaware Statutory Trust

Welcome to our informative webpage about Delaware Statutory Trusts (DSTs). On this page, we will provide you with a comprehensive overview of DSTs, their benefits, and how they can be utilized for various investment purposes.

What is a Delaware Statutory Trust?

A Delaware Statutory Trust is a legal entity created under the laws of the state of Delaware. It is commonly used as a vehicle for holding and managing real estate investments. DSTs offer investors the opportunity to own fractional interests in large-scale, professionally managed properties, such as apartment complexes, office buildings, retail centers, and industrial parks.

How does a Delaware Statutory Trust work?

When investing in a DST, investors purchase beneficial interests in the trust, which entitle them to a proportional share of the income, tax benefits, and potential appreciation of the underlying property. The trust is managed by a professional trustee, who is responsible for overseeing the day-to-day operations and making investment decisions on behalf of the investors.

What are the benefits of investing in a Delaware Statutory Trust?

There are several advantages to investing in a DST:

1. Diversification: By investing in a DST, investors can gain exposure to a diversified portfolio of high-quality properties, reducing the risk associated with investing in a single property.
2. Passive Income: DST investors receive regular distributions from the rental income generated by the underlying properties, providing a steady stream of passive income.
3. Tax Benefits: DSTs offer potential tax advantages, including the ability to defer capital gains taxes through a 1031 exchange and the potential for depreciation deductions.
4. Professional Management: The properties held by DSTs are professionally managed by experienced real estate professionals, relieving investors of the burden of day-to-day property management.

Who can invest in a Delaware Statutory Trust?

Delaware Statutory Trusts are available to both accredited and non-accredited investors. However, it is important to note that DSTs are typically offered through private placement offerings, which may have certain minimum investment requirements.

Frequently Asked Questions

Q: Are Delaware Statutory Trusts only for real estate investments?

A: Yes, DSTs are primarily used for investing in real estate properties. They provide a convenient and efficient way for investors to access the benefits of real estate ownership without the need for active management.

Q: Can I use a Delaware Statutory Trust for a 1031 exchange?

A: Yes, DSTs are commonly used in 1031 exchanges, which allow investors to defer capital gains taxes by reinvesting the proceeds from the sale of a property into a like-kind property. However, it is important to consult with a tax advisor or qualified intermediary to ensure compliance with the specific requirements of a 1031 exchange.

Q: How long does a Delaware Statutory Trust typically last?

A: The duration of a DST is typically specified in the trust agreement. It can range from a few years to several decades, depending on the investment strategy and objectives of the trust.

Q: Can I sell my beneficial interest in a Delaware Statutory Trust?

A: Yes, it is possible to sell your beneficial interest in a DST. However, the sale is subject to certain restrictions and may require the approval of the trustee and other investors in the trust.

Thank you for visiting our webpage and learning more about Delaware Statutory Trusts. If you have any further questions or would like to explore investment opportunities, please don't hesitate to contact us.

Included in all incorporating services:

• Company Name Check Verification & Availability
• Preparation & Filing of Articles of Formation
• Same Business Day Processing
• Registered Agent (1st Year FREE)
• Email Reminders & Alerts
• Lifetime Customer Support