Is a Delaware Statutory Trust (DST) Right for Your 1031 Exchange?

If you’re exploring passive replacement property options for a 1031 exchange, a Delaware Statutory Trust (DST) might be on your radar—and for good reason. DSTs offer fractional ownership in institutional-quality real estate, no active management responsibilities, and potential for steady monthly income. Most DSTs are compliant with IRS Revenue Ruling 2004-86 and designed to meet 1031 “like-kind” requirements, making them an attractive alternative for many investors.

But before diving in, it’s important to understand both the benefits and the risks. DSTs come with specific IRS rules (think “Seven Deadly Sins”), accreditation requirements, and limited investor control.

Want a breakdown of the key pros and cons?
Read the full article here to learn more about how DSTs work—and whether they might be a fit for your next exchange.