The Value of a Delaware Statutory Trust
A Delaware Statutory Trust (DST) gives you a legal way to complete a 1031 exchange without having to buy and manage another property yourself.
Instead of taking the proceeds from your sale (and paying capital gains tax), you reinvest those funds into a DST. That trust owns income-producing real estate — and pays you monthly.
You stay in the real estate game, defer the taxes, and retire from being a landlord.
The Benefits of a DST
Defer Capital Gains Taxes
No tax hit on the sale if you reinvest correctlyMonthly Passive Income
You still get paid — just without the workNo More Property Management
Leave the tenants, repairs, and late-night calls behindAccess to Bigger, Better Properties
DSTs pool funds to buy high-quality commercial real estate most individuals couldn’t afford on their own
Who Is a DST For?
If you’re…
Tired of dealing with tenants or contractors
Concerned about taxes eating into your sale
Wanting income but not more work
Looking to simplify your life while protecting your wealth
…then a DST might be the right move.
How it Works
Step 1: Sell your investment property
You close the sale like normal, but your proceeds are held for a 1031 exchange.
Step 2: Transfer funds into a DST
We help you place those funds into a qualified DST that fits your goals.
Step 3: Start receiving income
You begin receiving monthly distributions — and you’ve deferred the tax burden.
Why ICON1031?
We specialize in helping experienced property owners protect what they’ve built — and enjoy the next chapter without being tied to toilets, tenants, or taxes.
Our clients typically come to us when:
They’re ready to sell but don’t want to pay the tax
They want income, not headaches
They want to simplify their portfolio without giving up returns
Let's Talk
Schedule your free consultation now and let’s talk through your options — no pressure, just clarity.
What is a Delaware Statutory Trust?
A Delaware Statutory Trust — or DST for short — is a legal entity used to hold real estate investments. It lets multiple investors co-own large commercial properties without managing them directly. Best part? DSTs qualify for 1031 exchanges, so you can sell a property and reinvest the profits without immediately paying capital gains taxes.
How does a DST fit into a 1031 exchange?
When you sell investment property, the IRS lets you defer taxes if you reinvest the proceeds into another “like-kind” property. A DST counts. Instead of buying another building (and becoming a landlord again), you can place your funds into a DST. You still qualify for the exchange, but now your income is truly passive.
Why would someone choose a DST?
For many property owners, a DST just makes life easier. Here’s why:
You defer capital gains taxes
You get monthly income without managing tenants
You gain access to premium real estate
You skip the stress that comes with repairs, vacancies, or evictions
Who usually invests in DSTs?
We see a lot of Baby Boomers making the move into DSTs — especially those retiring or simplifying their real estate portfolios. If you’re thinking, “I want income but I’m done being a landlord,” you’re in the right place.
What kind of real estate is inside a DST?
DSTs typically own large, stable properties like:
Apartment complexes
Medical offices
Distribution centers
Grocery-anchored retail
Long-term leased commercial space
These are the kinds of buildings you’d see in major markets, often with big-name tenants.
Is this a safe investment?
Like any investment, there’s some level of risk — but DSTs are generally considered lower risk than managing a single property on your own. They’re backed by real assets, handled by experienced managers, and often leased to creditworthy tenants. Still, it’s wise to review each offering carefully.
Can I put just part of my 1031 money into a DST?
Yes, you can. It’s common for investors to use DSTs to fill gaps in a 1031 exchange — especially if your sale amount doesn’t match the purchase price of a single replacement property. It’s a great way to diversify.
What’s the typical minimum investment?
Most DSTs start around $100,000, though some vary. If you’re doing a 1031 exchange, we can help match you with options that fit your total reinvestment needs.
Can I sell my interest later?
DSTs aren’t like stocks — they’re not liquid. Most hold the property for 5 to 10 years. When the trust sells, investors get their share of the proceeds. At that point, you can choose to cash out or roll the funds into another 1031 exchange.
How do DSTs help with estate planning?
This is where things get interesting. If you hold your DST until death, your heirs may receive a step-up in basis, wiping out the deferred tax liability. Plus, they won’t have to manage any properties — just collect the income.
Want to Know More?
We’re here to help you keep more of what you’ve built — and make life simpler in the process.
Click here to book a free consultation or call us anytime.
