Delaware Statutory Trust 2023
Delaware Statutory Trust 2023
A Delaware statutory trust (DST) is a legal entity that is created to hold and manage assets for the benefit of investors. It is a popular structure for real estate investment vehicles, as it provides the benefits of a traditional trust while also allowing for the flexibility and pass-through taxation of a partnership. The trust is formed under Delaware state law and is managed by a trustee, who is responsible for overseeing the trust's assets and making decisions on behalf of the investors. The trust is composed of beneficial owners, who hold an interest in the trust's assets and receive a share of the income generated from those assets.
One of the key advantages of a DST is the ability to divide the trust's assets into separate units, known as "fractional ownership interests." This allows investors to purchase a partial interest in a particular property or portfolio of properties, rather than having to invest in the entire asset. Another advantage of a DST is the ability to pass through income, gains, losses, and deductions to the beneficial owners on a pro-rata basis. This allows investors to avoid the double taxation that can occur with a traditional corporation, as the trust itself is not subject to corporate income tax. In addition, Delaware has a long history of providing favorable legal and regulatory environments for trusts and other business entities. This, along with the state's highly developed trust law, makes it a popular choice for forming a DST. Overall, a Delaware statutory trust can provide investors with a flexible and tax-efficient structure for holding and managing real estate assets. It offers the benefits of a traditional trust, while also providing the pass-through taxation and fractional ownership opportunities of a partnership.
Despite some of the positives that comes with the Delaware Statutory Trust, there are also some negatives that are associated with the 1031 DST. When it comes to the fees, they can range from 4-9% depending on the Delaware Statutory Trust company, leverage, and portfolio. These fees can be high for some real estate investors. When it comes to the Delaware Statutory Trust, you are also giving up control when you invest into a Delaware Statutory Trust. This means that you do not have voting rights, or any input when it comes to selling the Delaware Statutory Trust property. This lack of control and voting rights can be a negative for some real estate investors looking to maintain control of their properties. This is why the Delaware Statutory Trust considers the income, passive income. If you have questions about the newest Delaware Statutory Trust 2023 manufactured housing / mobile home park DST properties, please fill out the form below or call our office directly at 805-583-2720 and we would be happy to answer your Delaware Statutory Trust 2023 questions in a timely manner.
Delaware Statutory Trust 2023 Mobile Home / Manufactured Housing DST Properties
*The properties depicted here are representative examples of the types of property that can be owned within a DST. They are not intended to depict or represent any particular investment offering.
