Wednesday, 8 September 2021

4 Key Benefits of Investing in Delaware Statutory Trust Companies

If you're in the market for new investment, you may want to consider investing in Delaware statutory trust companies. This type of investment offers many benefits that you'll find appealing if you succeed in it. Here are a few benefits of investing in Delaware statutory trust companies.

Estate planning

Estate planning is one of the main benefits you get from investing in Delaware statutory trust companies. For estate planning, you have to make decisions about how you want your assets to be distributed when you die. It also helps with reducing taxes on those assets while you are still alive. This can help both you and your family tremendously because it protects what's yours for you and your family, but you also avoid the hefty taxes you would pay if you were to die with assets in your name.

DSTs are a great way to set up your estate plan because they make sure that your beneficiaries will not pay capital gains taxes when you die as they would with other types of investments. For example, if you were to pass away and leave stock in a company you own directly to your child or another beneficiary, that person would have to pay capital gains tax on the difference between what you paid for it initially and its value at the time you died. If you invest in DSTs, you can avoid this. Also, DST investments are easily divisible. That means that you can easily break up your DST investments and give them to multiple beneficiaries easily.

Investment control

When you invest in DST companies, you have full control over your investments. You'll enjoy complete discretion with regards to the assets you hold and how you choose to protect them. In addition, you'll be able to invest in a wide variety of assets that you can then use as you see fit. When it comes to your investments, there are no limitations or restrictions and you'll have complete autonomy over them.

In this respect, when you invest in these companies, you'll likely find that it's much more difficult to invest in other types of assets, and you may feel limited when you do. You may not have access to the same variety of assets you would find in DST companies, and you'll also likely be restricted when it comes to how you can use your investment.

Tax deferral

Another benefit you'll enjoy when you invest in DST companies is tax deferral. If you realize a gain on a commercial real estate asset, you can exchange the proceeds into a DST company without worrying about the gain's recognition for tax purposes. As a property owner who has owned a particular asset for a long time during which there has been a significant price appreciation, this kind of tax benefit should be very attractive to you. Instead of paying capital gains taxes after selling the property, you can sell the property and put the proceeds into the trust and, in the process, defer the tax bill.

Low minimums and diversification

Investing in DST companies also offers you the benefits of low minimums and diversification. With a $100,000 initial investment, you can get started with these accounts. You'll be able to add on additional investments later if you want without having to worry about high fees or other costs that may affect your profits as time goes by. This is a low-risk way you can build up your investment portfolio. The initial investment is lower than what you'd find with other types of investments, and you'll also be able to diversify your portfolio by investing in a wide variety of assets.

In addition, you'll also be able to diversify by investing in a wide variety of properties, such as office spaces, retail locations and apartment buildings. If these properties are in multiple locations, you'll be able to diversify even further. That will protect you against any negative consequences of exposure if you invest in these properties.

As we've seen, investing in DST companies offers you a number of benefits you won't find elsewhere. To diversify your portfolio and gain control over the assets you own, these are great investment choices for you to consider.

Author: Aleena Jones
She has worked with various business magazines like Business Today Outlook as a freelancer before joining the team. She is an addicted reader of self-help books, fiction, and journals.