5 Types of Investors Who Should NOT Do a Delaware Statutory Trust

Delaware Statutory Trusts, or DSTs, solve a lot of problems for real estate investors interested in a 1031 exchange … but they’re not right for everyone.

Someone pushes a red button that is labeled "No!"
(Image credit: Getty Images)

If you have found this article, you likely understand the many benefits that exist for real estate investors who exchange their property for DST, Delaware Statutory Trust fractionalized replacement interests.

Since 2004, when DSTs qualified for the 1031 exchange rules, those benefits include saving vast amounts of tax via the 1031 Exchange, preservation of the “step-up in basis” rule, moving away from loan guarantees, cash calls and the three T’s: Tenants, Toilets and Trash.

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Daniel Goodwin
Chief Investment Strategist, Provident Wealth Advisors

Daniel Goodwin is a Kiplinger's contributor on various financial planning topics and has also been featured in U.S. News and World Report, FOX 26 News, Business Management Daily and BankRate Inc. He is the author of the book Live Smart - Retire Rich and is the Masterclass Instructor of a 1031 DST Masterclass at www.Provident1031.com. Daniel regularly gives back to his community by serving as a mentor at the Sam Houston State University College of Business. He is the Chief Investment Strategist at Provident Wealth Advisors, a Registered Investment Advisory firm in The Woodlands, Texas. Daniel's professional licenses include Series 65, 6, 63 and 22. Daniel’s gift is making the complex simple and encouraging families to take actionable steps today to pursue their financial goals of tomorrow.