Using Delaware Statutory Trusts in Real Estate Investments: Opportunities and Legal Risks

This CLE webinar will provide real estate finance and tax counsel with a review of the advantages, disadvantages, and risks of using Delaware statutory trusts (DSTs) as a real estate investment structure. The panel will offer approaches for structuring and financing DSTs and discuss the key tax issues associated with DSTs, including the "seven deadly sins," which can jeopardize 1031 tax treatment.

DSTs have become the investment vehicle of choice for syndicated IRC Section 1031 exchanges. DSTs can be used with many different real estate asset classes, accommodate a wide range of financing, and be structured to have multiple assets. Nevertheless, the qualification of DST interests as replacement property for purposes of IRC Section 1031 is a complex subject, and incorrectly structured DSTs may trap an unwary investor.

Listen as our authoritative panel of real estate and tax practitioners reviews the opportunities and pitfalls of using DSTs in real estate investments. The group will discuss structuring and financing the DST with particular attention to the tax issues and ramifications.