A Delaware Statutory Trust (DST) is an entity that lets investors hold fractional interests in real estate, and DST interests can qualify as like-kind replacement property.
A DST is a trust that owns one or more properties, and investors buy beneficial interests in it. IRS guidance has allowed DST interests to qualify as like-kind replacement property in a 1031 exchange. Investors are passive and have no role in management, which appeals to those who want to step away from active ownership. The trade-offs include limited control over when the property is sold, restricted liquidity, and fees. A DST should be reviewed with an advisor who understands the offering.