RENT Magazine Q1 '22

The shared beneficial interest structure of DSTs allows an investor to easily diversify their 1031 reinvestment with flexibility. For example, an investor owns 30 units in an apartment DST and 50 units in a DST portfolio of Dollar General, FedEx and Amazon net lease properties. The individual wants to leave the DST investments to his two grown children. He can choose to give the apartment DST to one child and the Dollar General, FedEx and Amazon DST to the other child, or he can divide up the units within each DST to give some of each to both children. In comparison, carving up ownership for heirs in a wholly owned property can be difficult and even contentious. You can’t give the roof to one child or grandchild, the walls to another, and the doors to a third. It’s all or nothing. Some heirs may want to sell, while others don’t. If they all agree to sell, then they also have to agree on when to sell and at what price. In some cases, that process can drag on for years. During that time, the heirs also need to assume the management responsibilities for that property or pay someone else to do it. That process can get complicated. DSTs are commonly used in 1031 exchanges as a means to defer taxes. Yet the tax advantages of the fractional ownership structure also can be passed onto future generations to help build family wealth. For more information on how DSTs can be used in estate and tax planning strategies, it is always wise to consult with your tax and legal advisors. For a look at the types of DST properties investors are using for estate planning purposes, please visit the Kay Properties marketplace at

CREATING MORE LEISURE TIME TO SPEND WITH FRIENDS AND FAMILY In addition to the tax deferral and estate planning benefits of DST 1031 exchanges, there is another powerful benefit investors discover upon investing in DSTs: they have more free time! Because DSTs remove the responsibility of active management responsibilities and provide investors monthly income potential, investors are able to create more time for leisure. This gift of time is considered by many to be the most valuable asset available to us. More leisure time allows investors to get more involved with their friends and family or pursue new activities, like traveling, learning new hobbies, improving their health, etc.

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