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Delaware Statutory Trust (DST)
the hands-off 1031.

Sell your investment property, put off the tax bill, and collect income without managing anything: how a Delaware Statutory Trust works as a 1031 alternative, explained by a financial planner.

By Scott Efrusy, CFP®, Financial Planning Analyst, Horizon Advisers · Published July 12, 2026

The plain-words version

What a DST is

DST stands for Delaware Statutory Trust. It is a big, professionally managed pool of income properties. When you sell a rental or another business-use property, you can move the money into the trust instead of buying another building yourself.

You own shares of the pool. The tax bill on your sale stays deferred, the trust manages the properties, and income is often paid monthly. Scott explains it below. Chapter3 does not sell DST shares; a financial planner does. Our agents sell the Grand Strand property that funds the trust and coordinate the closing with your planner and your qualified intermediary so the deadlines hold.

In the expert’s words

A financial planner on how the DST works

A DST (Delaware Statutory Trust) is a great tool for real estate investors to utilize when selling property used for business. With the DST, the investor can shield and defer any taxation from the transaction by transferring the proceeds into a DST which is classified as a separate legal entity. Once the property owner transfers the proceeds into the DST, they get ownership and "shares" of the trust and often receive monthly income from the trust. The DST is structured similarly to a REIT (Real Estate Investment Trust) in the sense that it provides a diverse portfolio of real estate holdings instead of transferring into a single physical piece of property using a traditional 1031 exchange. On top of the benefits of diversification, a DST requires less physical demand of maintaining a property that a traditional 1031 exchange entails. Like all investments and financial planning strategies, the DST has many benefits, but also has disadvantages. Please make sure to consult a financial professional for guidance when implementing a DST.

Scott Efrusy, CFP®, Financial Planning Analyst, Horizon Advisers

The 10-second read

The trade, in one look

Two facts to carry into the conversation with your planner: DST offerings are private placements open to accredited investors, and the minimum for a 1031 investor is commonly $100,000, with minimums nearer $25,000 to $50,000 mostly reserved for cash investors. Fees exist at several layers and are listed in the offering documents. Read them before you commit.

Two roads, same tax break

DST or traditional 1031?

New to the 1031 itself? Chapter3 has worked the traditional kind on the Grand Strand for years. Read our plain-words 1031 guide first.

Is it for you

Who a DST tends to fit

The classic fit is a landlord near retirement. You want the income and the tax deferral, but you are done with tenants, toilets, and 2 a.m. phone calls. Our agents on the Grand Strand meet that landlord every month, and the first question we ask is whether a regular exchange or a DST fits the years ahead.

It tends NOT to fit someone who wants control, quick access to their money, or the chance to force a property’s value up with their own work. As Scott says above: talk to a financial professional before implementing one. Many of the landlords Chapter3 has sold for on the Grand Strand fit the first description: years of rentals here, and no interest in the next roof.

Let us help with your next investment.

Send us an address you are looking at, or have us send you an investment property for sale. We will run the rent, the expenses and the association documents before you write an offer, at no cost.

Quick answers

Frequently asked questions

Selling an investment property on the Grand Strand?

We handle the real estate side, run the numbers on the sale, and coordinate with your financial advisor on the rest.