Why Use a 1031 Exchange instead of the Deferred Sales Trust?

Created by Client Experience Team, Modified on Wed, 15 May, 2024 at 2:25 PM by Client Experience Team

Consider a 1031 exchange over the Deferred Sales Trust for the following reasons:


  1. Stepped-Up Basis: Retain the stepped-up basis with a 1031 exchange, whereas the DST does not provide this benefit. However, heirs can step into your shoes and maintain the DST trust to preserve capital gains tax deferral.


  1. Lower Fees: A 1031 exchange typically involves lower one-time fees compared to ongoing annual fees with a DST.

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