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.
We will work closely with you as we do with any of our clients to determine the best solution for your 1031 Exchange. Contact us today.