Who uses a Delaware Statutory Trust?

[Justin R.]

If you have set up a DST for asset protection, and/or anonymity, please let me know your thoughts. I have just started communicating with an attorney about this method but would like to hear from others as well. Who did you use to set up the structure? Any negatives to this strategy? Are you paying state filing fees in your residency state (CA myself)? Troubles with book keeping, bank accounts, accounting? Taxable consequences? Thanks for your input!! Justin

[Jillian Sidoti]

@Justin R. - I am a securities attorney that deals with DSTs. @Brandon M. is correct in saying you should involve a securities attorney but you don't need a series 7 license to sell interests necessarily as there is an issuer exemption available so long as you follow the rules. 

Even with a DST investment, you need a PPM and Trust Agreement. You still need to file Form Ds.

A DST is not necessarily the right vehicle to use for asset protection and anonymity - it is the right vehicle to use in lieu of a 1031 exchange for certain tax advantages. Please google "7 Deadly Sins of a DST" prior to considering a DST to use with investors. Let me know if you have further questions. I am also in California.