Special circumstances that require additional documents: Successor trustees: If the trust ownership is being/has passed to you from someone else, provide additional documentation as to why the original/current trustee is no longer acting (i.e., death certificate, letter of incapacitation). We are glad you found our article helpful. Real Estate Tip: 1031 Delaware Statutory Trusts | Kiplinger What have you learned about scuba diving? The cookie is used to store the user consent for the cookies in the category "Analytics". The rules can be complicated, even for experienced investors. The statutory definition of "Statutory Trust" generally incorporates the common law concept and the modern requirements of a written instrument and the filing of a document with the secretary of state. 45 Minute Call/Zoom A Zoom invite will be emailed with a conference call number if you wish to use your phone. I am from Melbourne, Australia but I lived in Texas for many years in a marriage situation. the Delaware statutory trust (DST) described therein qualifies as an investment trust under IRC 301.7701-4(c) that will be classified as a trust for federal tax purposes, and; that a taxpayer may exchange real property for an interest in the trust without recognition of gain or loss under 1031 if the other requirements of 1031 are satisfied. Nothing provided shall constitute financial, tax, legal, or accounting advice or individually tailored investment advice. **There's no annual account service fee if you sign up to receive statements and other important documents electronically or if you have at least $50,000 in qualifying Vanguard assets. The State of Delaware, in 1988, adopted the Delaware Business Trust Act, the name of which was changed to the Delaware Statutory Trust Act (DST Act) in 2002. Log in and add a plan to your account. 1031 Exchange vs. Delaware Statutory Trust (DST) Liability protection: The DST wrapper shields the exchanger/investor from any liabilities with respect to the property. Are there any companies she should gravitate towards or avoid? Not all of services referenced on this site are available in every state and through every representative listed. Click to register for our FREE online real estate class! Therefore, investors who are particularly adept within the real estate industry and know how to navigate the market well may find that investing in their own strategy is better. A DST offering can be any type of commercial property; apartments, retail space, office buildings, industrial parks, etc. Is it necessary for a Delaware Trust to have an US-EIN? Investors may gain access to one of the most under-appreciated strategies ever in converging unique tax-sheltering advantages, passive income, and an actively managed portfolio of cash-flowing real estate assets. Roger W. Bowlin - Founding Partner of Real Estate Transition Solutions, provides exit strategy analysis, execution, income and equity replacement options for investment property owners. This cookie is set by GDPR Cookie Consent plugin. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Investors also must complete the acquisition within 180 days. Nonetheless, those familiar with these impressive wealth-building vehicles are more than aware of the unique advantages they award savvy investors. We use cookies to provide you with a great experience and to help our website run effectively.