Top Reasons to Consider a DST When Estate Planning | DST Investment

While estate planning is something that no one likes to think about, it is an important process that everyone should go through. One way to plan your estate is to use a Delaware Statutory Trust or DST. However, most people are unfamiliar with this type of trust, which can lead to confusion about whether it is the right estate planning tool for them.

This article will cover everything you need to know about Delaware Statutory Trusts, including how they work and the benefits they offer. By the end of this article, you will have a better understanding of whether a DST is right for your estate planning needs.

What is a Delaware Statutory Trust?

A Delaware Statutory Trust is an entity created by state statute that allows for the pooling of assets for investment purposes. DSTs are commonly used by investors who want to diversify their holdings or those who want to invest in a property without the hassle of dealing with day-to-day management.

DSTs are managed by a trustee responsible for handling all of the trust’s affairs. The trustee is typically a bank or other financial institution. The trustee will also handle the distribution of trust assets to the beneficiaries.

How Does a DST Work?

Investors in a DST can pool their resources to purchase property, such as office buildings, shopping centers, or apartments. The property is then held in the trust and managed by the trustee. The trust agreement will outline the trustee’s duties and the beneficiaries’ rights.

Benefits of a DST

There are several benefits of using a DST for estate planning purposes, including:

Asset protection: One of the main benefits of a DST is that it can offer asset protection. By holding assets in the trust, they are shielded from creditors and lawsuits.

Simplified ownership: DSTs can simplify ownership of complex investments, such as commercial real estate. Rather than each investor owning a fraction of the property, the trust owns the property, and the investors own an interest in the trust. This can make it easier to transfer ownership or sell your interest in the trust.

Probate avoidance: Another benefit of a DST is that it can help to avoid probate. Probate is the legal process of distributing a person’s assets after they die. If an asset is held in a DST, it will not go through probate, which can save time and money.

Estate tax savings: A DST can also offer estate tax savings. When a person dies, their estate is typically subject to estate taxes. However, if the assets are held in a trust, they may be exempt from estate taxes.

Improved cash flow: DSTs can also provide improved cash flow. This is because the trustee is responsible for managing the trust and collecting rent from tenants. The trustee will then distribute the income to the beneficiaries. This can provide a steady stream of income, which can be helpful for retirees or those with a limited income.

Who Should Use a DST?

A DST can be a good option for anyone who wants to protect their assets, simplify ownership of complex investments, or avoid probate. A DST can also be a good choice for those who want to save on estate taxes or improve their cash flow.

If you are considering using a DST for your estate planning needs, it is important to work with an experienced attorney. An attorney can help you determine if a DST is right for your situation and can assist you with the creation of the trust.

Important Facts to Remember About Estate Planning and DSTs

Estate planning is an important process that everyone should go through, regardless of their age or health. Estate planning can help you protect your assets and make sure your wishes are carried out after you die.

A Delaware Statutory Trust can be a helpful tool for estate planning. A DST can offer asset protection, simplified ownership, probate avoidance, and estate tax savings. If you are considering using a DST for your estate planning needs, it is important to work with an experienced attorney.

Estate planning is a complex process, and there are many factors to consider. If you have any questions about estate planning or DSTs, please contact our office. We would be happy to help you with your estate planning needs.

Thank you for reading! We hope this article has been helpful. Please feel free to share it with your friends or family who may be interested in using a DST for their estate planning needs. It’s important to be prepared, and we can make the process simple and stress-free.