Delaware Statutory Trusts Can Help Clients
Carl E. Sera, CMT
January 14, 2020
Delaware Statutory Trusts can help clients:
• Defer long term capital gains and depreciation recapture
• Receive tax-advantaged income
• Provide heirs with a stepped-up cost basis
• Assist in estate planning
• Unwind real estate positions
• Ensure that real estate transactions close in the 45-day identification period
• Match debt and equity
• Solve the “boot” problem, when relinquished property costs more than the replacement property
• Acquire vacant farmland or real estate for development
• Sell their businesses when properties and land are part of the conditions of sale
And as always, with many DSTs, broker/dealer commissions are baked into the cost of each deal. When considering DSTs, it’s important to work with an investment fiduciary who will waive these commissions and work on a consulting basis, that way, clients receive more beneficial interest in each DST.
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