What is a Delaware Statutory Trust?


It is a type of like kind transfer that is available to small investors yet qualifies under the Internal Revenue Code rules for like kind transfers so that the exchange is not subject to the capital gain at the time the transfer is made. The investor transfers the property in return for a security which is an interest in a trust. The Trust invests in commercial grade properties having substantial value. The investor no longer owns his or her property directly, and so has no hands-on duties. Further, the strict time periods and number of investor limitations applicable to like kind transfers do not apply. The investor receives monthly distributions based on a percentage of the value of the investment. The holding period is normally around 10 years but may be shorter. Investment amounts are frequently in the range of $250,000 but may be smaller in some cases, depending upon the sponsor.

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Call Attorney C. Stephen Gurdin Jr. at his Gurdin Law Wilkes-Barre Scranton Pennsylvania area office today, 570.826.0481 toll free 1.800.221.0618.email Stephen@gurdinlaw.com to schedule a free consultation
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