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

Structuring and Financing the DST, Advantages Over TIC Ownership, Preserving 1031 Tax Treatment

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE webinar with Q&A


Conducted on Thursday, September 26, 2019

Recorded event now available

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Program Materials

This CLE webinar will provide real estate finance and tax counsel with a review of the advantages and risks of Delaware Statutory Trusts (DSTs) as a structure for real estate investments. 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.

Description

DSTs have become the investment vehicle of choice for syndicated IRC Section 1031 exchanges. DSTs can be used with many different classes of real estate assets, can accommodate a wide range of financing in place, and can 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 DSTs that are not structured correctly may be a trap for the 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.

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Outline

  1. Trends in the use of DSTs for real estate investments
  2. Structuring the DST
  3. Assets for DST programs
  4. Financing DST investments
  5. DST governance
  6. Workouts of DST programs
  7. Non-traditional uses for DSTs--REITs/funds vs. direct investment

Benefits

The panel will review these and other key issues:

  • What are the trends in using DSTs as real estate investment vehicles?
  • What opportunities exist for using DSTs and what are some of the legal pitfalls?
  • What types of investment properties are DSTs well-suited for as an investment structure?
  • What challenges do DSTs present for lenders and how should these problems be addressed?

Faculty

Hannon, Edward
Edward J. Hannon

Shareholder
Polsinelli

Mr. Hannon concentrates his practice on providing advice and counsel to clients on the development of tax savings...  |  Read More

Meier, Steven
Steven R. Meier

Partner
Seyfarth Shaw

Mr. Meier's diverse tax practice involves all aspects of federal taxation. He regularly advises clients on the...  |  Read More

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