LLCs and corporations often lock heirs into conflict when land passes down. A Delaware Statutory Trust (DST) separates ownership, provides direct distributions, and reduces family disputes—helping preserve wealth and relationships. While DSTs still involve paperwork and fees, they they give families breathing room that old structures rarely can.

A 1031 exchange lets landowners defer capital gains by rolling into like-kind property, but strict IRS rules require equal or greater debt, equity, and purchase price. Delaware Statutory Trusts (DSTs) ease this with built-in non-recourse loans, giving investors access to larger real estate, steady cash flow, and debt kept off balance sheets.

Delaware Statutory Trusts (DSTs) are built to solve real challenges for property owners. They can defer capital gains taxes, create potential retirement income, reduce management headaches, and simplify estate planning. In this section, we’ll walk through real scenarios to show exactly how DSTs help people in practice.

You worked hard to be debt-free—so why take on debt again? In a DST, 50% non-recourse leverage isn’t risk on your shoulders, it’s a tool. It magnifies depreciation, cuts taxable income, boosts cash-on-equity, and broadens diversification—all without personal liability. For debt-averse investors, it’s the one form of debt that can actually protect and reward you.

Underwriting a Delaware Statutory Trust (DST) means more than just reviewing a sales brochure. We dig into the sponsor’s track record, audited financials, property fundamentals, financing terms, and fees—then weigh findings against independent third party reports. Only a handful of DSTs pass our rigorous due diligence process, protecting investors and our reputation.

Many landowners assume capital gains tax is just 15%, but the true cost can climb to 30–40% once federal, state, and depreciation recapture are factored in. Paying upfront also destroys future compounding power under the Rule of 72. By consulting a CPA for a pre-closing tax analysis and exploring 1031 exchange options, you can protect and preserve wealth.

Farmers and ranchers weighing DSTs versus REITs should know the differences are huge. DSTs allow 1031 exchanges, depreciation benefits, and direct ownership in real estate. REITs offer liquidity and diversification but come with upfront taxes and no control. Unless you’re simply cashing out, DSTs typically keep more of your wealth working for you and your heirs.

Delaware Statutory Trusts (DSTs) offer potential income, 1031 tax deferral, and estate planning benefits, but they are not risk-free. DSTs are long-term, illiquid, and depend on sponsor performance, property markets, fees, and debt. This article explains the risks in plain English and how Iron Ridge Advisors carefully selects and manages DST options to help clients make informed choices.

Farmers and ranchers often lose 30–50% to taxes when selling livestock, grain, or machinery. A Charitable Remainder Unitrust (CRUT) avoids that tax hit by selling inside the trust and paying you potential income for life. Pair it with a Wealth Replacement Trust that funds life insurance for your kids, giving them tax-free inheritance and keeping your family legacy strong.

When selling land, a Structured Installment Sale just spreads your tax bill over time—you’ll still pay every penny, and your heirs may inherit the tax burden. A Delaware Statutory Trust (DST) through a 1031 exchange, on the other hand, defers all taxes immediately. Hold it until death, and your heirs can get a full step-up in basis, wiping out the tax bill completely.