What is a Delaware Statutory Trust for senior housing?
Direct answer
A Delaware Statutory Trust is a trust that holds real estate and sells fractional ownership interests to investors. Under Revenue Ruling 2004-86, those interests qualify as replacement property in a 1031 exchange. DST interests are securities, offered to accredited investors, and Haven does not sell them.
What to know
For a senior housing investor, a DST is a passive structure. The trust owns the property, a sponsor manages it, and investors hold beneficial interests. Because the IRS treats those interests as real property, a seller can exchange into a DST and defer tax without taking on day-to-day operations.
The trade-offs are loss of control and liquidity. You cannot manage the property, interests are hard to resell, and offerings are limited to accredited investors because they are securities. If you want to explore DSTs, work with a licensed securities professional; Haven's role stops at the real estate itself.
This is general information, not tax, legal or investment advice. Talk to your CPA and attorney about your situation.
How Haven helps
Haven helps sellers who plan to exchange understand their replacement options, including when a DST may be worth discussing with a securities-licensed advisor. Read our 1031 exchange guide for senior housing.