--- title: What are the Responsibilities and Duties of DST Trustees and Beneficiaries description: "Generally, two parties are involved with a successful DST: Trustees and beneficiaries. Both roles carry specific requirements." image: https://www.realized1031.com/hubfs/Images/Blog/paperwork-realestate-investing-transaction-is1365251457.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # What are the Responsibilities and Duties of DST Trustees and Beneficiaries Posted Aug 7, 2023 ![What are the Responsibilities and Duties of DST Trusties and Beneficiaries ](https://www.realized1031.com/hs-fs/hubfs/Images/Blog/paperwork-realestate-investing-transaction-is1365251457.jpg?width=750&height=393&name=paperwork-realestate-investing-transaction-is1365251457.jpg) The Delaware Statutory Trust (DST) is a passive investment structure that offers investors partial ownership of real estate properties. In some instances, this investment type can provide certain benefits to investors, including access to certain real estate investment types, potential portfolio diversification, and possible cash flow.  Generally, two parties are involved with a successful DST: Trustees and beneficiaries. Both roles carry specific requirements.  ### The DST Trustee The trustee is the individual or entity that has oversight of the trust. The trustee is responsible for hiring a sponsor (or sponsors) to manage the DST. The DST sponsor [is the person or entity](https://www.realized1031.com/glossary/dst-sponsor#:~:text=A%20DST%20Sponsor%20is%20a,assets%20held%20by%20the%20DST.) responsible for the day-to-day business management and decisions including finding and holding real estate property assets. The sponsor also issues the DST’s beneficial interests to investors. One requirement for the DST trustee is that [it must be based in Delaware](https://www.realized1031.com/blog/what-are-the-delaware-statutory-trust-dst-trustee-requirements), though it can have a managing or signatory trustee somewhere else.  In addition to creating, maintaining, and overseeing the trust, the trustee must follow certain rules: - Income generated by DST operations can’t be used to purchase additional properties or to improve existing assets (other than essential repairs or maintenance). - New investors can’t be accepted when the trust closes. - Trustees can’t renegotiate loans or leases in hopes of generating better terms. Trustees also have [fiduciary responsibilities including:](https://www.realized1031.com/blog/what-are-the-fiduciary-duties-involved-with-delaware-statutory-trust-dst-investment) - Duty of care, encompassing informed, thoughtful decision-making based on currently accessible information - Duty of loyalty, which requires acting in good faith and with the idea that a particular action or decision is in the best interests of the trust and its beneficiaries ### The DST Beneficiary “Beneficiary” means “investor.” In other words, the DST beneficiary is an investor in the trust. Though the beneficiary has no specific duties or responsibilities, each must be an accredited investor to legally participate. An [accredited investor must:](https://www.realized1031.com/blog/who-can-be-the-beneficiary-for-a-dst-and-can-there-be-more-than-one) - Have a personal income of $200,000 ($300,000 for married people), with assurances of similar levels in the current year - Have a net worth of more than $1 million (excluding a primary residence) - Hold professional investment credentials - Be a “knowledgeable” employee of a private investment fund DST beneficiaries should understand that they have no control over decisions made by the sponsors. Furthermore, DSTs tend to be long-term investments. This means capital will be tied up in the trust for several years. ### Understanding the Details While Delaware Statutory Trusts can be productive investments, trustees and beneficiaries must understand the requirements for launching, managing and investing in one. It’s also important to realize that DSTs are long-term investments. As such, investors should work with an advisor to understand the pros and cons of participating in a DST. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. No public market currently exists, and one may never exist. DST programs are speculative and suitable only for Accredited Investors who do not anticipate a need for liquidity or can afford to lose their entire investment. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation. 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For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "The Delaware Statutory Trust (DST) is a passive investment structure that offers investors partial ownership of real estate properties. In some instances, this investment type can provide certain benefits to investors, including access to certain real estate investment types, potential portfolio diversification, and possible cash flow. Generally, two parties are involved with a successful DST: Trustees and beneficiaries. Both roles carry specific requirements. The DST Trustee The trustee is the individual or entity that has oversight of the trust. The trustee is responsible for hiring a sponsor (or sponsors) to manage the DST. The DST sponsor is the person or entity responsible for the day-to-day business management and decisions including finding and holding real estate property assets. The sponsor also issues the DST’s beneficial interests to investors. One requirement for the DST trustee is that it must be based in Delaware, though it can have a managing or signatory trustee somewhere else. In addition to creating, maintaining, and overseeing the trust, the trustee must follow certain rules: Income generated by DST operations can’t be used to purchase additional properties or to improve existing assets (other than essential repairs or maintenance). New investors can’t be accepted when the trust closes. Trustees can’t renegotiate loans or leases in hopes of generating better terms. Trustees also have fiduciary responsibilities including: Duty of care, encompassing informed, thoughtful decision-making based on currently accessible information Duty of loyalty, which requires acting in good faith and with the idea that a particular action or decision is in the best interests of the trust and its beneficiaries The DST Beneficiary “Beneficiary” means “investor.” In other words, the DST beneficiary is an investor in the trust. Though the beneficiary has no specific duties or responsibilities, each must be an accredited investor to legally participate. An accredited investor must: Have a personal income of $200,000 ($300,000 for married people), with assurances of similar levels in the current year Have a net worth of more than $1 million (excluding a primary residence) Hold professional investment credentials Be a “knowledgeable” employee of a private investment fund DST beneficiaries should understand that they have no control over decisions made by the sponsors. Furthermore, DSTs tend to be long-term investments. This means capital will be tied up in the trust for several years. Understanding the Details While Delaware Statutory Trusts can be productive investments, trustees and beneficiaries must understand the requirements for launching, managing and investing in one. It’s also important to realize that DSTs are long-term investments. 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