Delaware statutory trust

[1] Delaware statutory trusts are formed as private governing agreements under which either (1) property (real, tangible and intangible) is held, managed, administered, invested and/or operated; or (2) business or professional activities for profit are carried on by one or more trustees for the benefit of the trustor entitled to a beneficial interest in the trust property.

Each owner receives their percentage share of the cash flow income, tax benefits, and appreciation, if any, of the entire property.

[3] The DST ownership option essentially offers the same benefits and risks that an investor would receive as a single large-scale investment property owner, but without the management responsibility.

[4] The concept for business trusts, especially those that involve the holding of property, dates back to 16th century English Common Law.

[7] Since the year 2000, Delaware statutory trusts have increasingly been used as a form of tax deferral, asset protection, and balance sheet advantages in real estate, securitization, mezzanine financing, real estate investment trusts (REITs), and mutual funds.

[5] The formation of a Delaware statutory trust is relatively simple and inexpensive, when compared to that of the more complex filings of other entity types.

[5] The signatures of the trustee(s) involved are then required, followed by submission of the forms to the Division of Corporations, along with a one-time $500 processing fee.

[2] If no desire for the statutory trust to be an investment company exists, the only remaining requirement is that it must have at least one trustee who resides in, or has a principal place of business within the State of Delaware.