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What is a Delaware Statutory Trust?

A Delaware Statutory Trust is a separate legal entity formed as a trust under Delaware statutory law and recognized by the IRS for federal tax purposes. The trust is structured so that each beneficiary (investor) owns a beneficial interest in the trust and has the right to receive distributions from its operation, either from rental income or eventual sale of the property. The trust holds title to 100% of the interest in the property. Investors do not possess the deeded title nor do they have the authority over the day-to-day handling of the property or the timing and details of its eventual sale. The Delaware Statutory Trust can expand investors’ options and benefits.