Understanding the Role of the Signatory Trustee in a DST
Delaware Statutory Trusts (DSTs) are entities that allow investors to earn income from underlying properties. As a trust, the DST naturally has a trustee, but its investment nature means that the trustee isn’t like those in other trusts. In fact, there’s more than one trustee involved in a DST.
Delaware Statutory Trust Fees Explained: What Investors Actually Pay
In recent years, Delaware Statutory Trusts (DSTs) have become a popular investment vehicle for passive investors, offering hands-off management and tax-deferral benefits. The steady cash flow is another appealing feature, but the amount you receive as income doesn’t always match the gross revenue you’ll see in financial reports. This discrepancy stems from the fact that DSTs charge fees to cover an array of expenses. Knowing where these costs apply and how they affect your overall return is crucial for understanding the overall DST investment.
Exchanging Vacation Rentals Into DSTs: Satisfying ‘Held for Investment’ Use Tests
If you’re an investor who owns a vacation rental, exchanging into a Delaware Statutory Trust (DST) may be an appealing strategy. Benefits like passive income and hands-off involvement are akin to owning the rental, minus the headaches of direct ownership. However, entering a DST through a 1031 exchange involves a few rules, one of which is that the properties must be like-kind. In other words, both relinquished and replacement assets must be held for investment.
Lease Renewals and Re-Tenanting in DSTs Given Operational Restrictions
While Delaware Statutory Trusts (DSTs) are passive investments that enhance diversification and provide tax-deferral benefits to investors, their restrictive nature creates certain limitations on a few aspects of operations. In this article, Realized 1031 focuses on DST leases and why the trust itself has little to no control over renewals and re-tenanting.
Environmental Issues in DSTs: Who Owns the Risk and What Remediation Is Permitted?
As you may well know, a Delaware Statutory Trust (DST) is a promising investment offering benefits like tax deferral and passive income. However, many risks are involved, including environmental issues that result in losses or destruction of the underlying assets. Repairs and remediations are necessary to ensure continued operations, but the nature of DSTs creates a problem over who is responsible for this risk and how involved the DST can actually be in the remediation efforts.
Ground-Lease DSTs vs. Fee-Simple DSTs Inside a 1031: Structural Differences That Matter
As you enter a Delaware Statutory Trust (DST) for the passive income and tax-deferral benefits, you acquire a beneficial interest under a fractional ownership framework. What about the DST? How does it own the underlying properties?
