What is a Delaware Statutory Trust?

1031xchange14 May, 2019Real Estate

A Delaware Statutory Trust or a DST is offered mainly as real estate securities to 1031 Exchange investors. DST investments are passive real estate investments that allow investors to acquire fractional ownership in real estate properties without the burden of property management. The structure for a DST investment was first created in Delaware in 1947. However, it isn’t mandatory for a DST to be located within the State of Delaware. DSTs are generally responsible for purchasing, managing, administering, and selling real estate properties. Investors within a DST enjoy their pro rata share of income, appreciations, and tax benefits. DST investments offer similar benefits and risks as any other real estate investment.