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Delaware Statutory Trust, also known as DST, brings people numerous advantages when it comes to financial transactions. However, very few people are actually aware of the benefits these trusts bring, which is why it is recommended to resort to the professional advice of a specialist in the domain who can offer you the necessary information about Delaware trusts and who can guide you through this process. Here are some of the best benefits of these trusts.

Minimal cost of maintenance and easy to form

According to experts, DSTs are quite easy and cost-effective both to form and maintain. You have to file a “short form” certificate of trust and to enter into some sort of a Trust Agreement. You also have to pay a modest fee to the Delaware Secretary of State the moment you file the certificate of trust, but there will be no other annual fees or other franchise taxes required.

There is contractual freedom

When it comes to the DST Act, the basic approach is to allow the parties to establish their business relationship and to establish rules in case they have failed to agree. One of the principles these trusts are based on is related to freedom of contract and to the enforcement a DST’s Trust Agreement is given, which means that both parties can create relationships that best match their business interests and needs and can define together the aspects of those relationships.

The management is flexible

When it comes to the affairs and businesses of a Delaware Statutory Trust, they are usually managed by either one or more trustees, not to mention the fact that the Trust Agreement can address nearly any aspect regarding the DST’s management, thus making the management flexible.

There is limited liability

Generally speaking, those who benefit from a DST have actually no personal liability regarding the obligations and the debts of the entity. However, the fact that personal liability is limited and that there is broad scope of permissible indemnification makes prospective investors and other industry specialists see these things as favorable.

There are tax advantages

Worth mentioning is also the fact that this US federal income tax law allows DST to be structured in a way that it does not subject it to tax when it is seen from the business organization level. As a result, DSTs provide a better tax alternative to companies from the corporate system and not only. It is worth noting that the contractual freedom enables both parties to choose the tax treatment that best fits their business interests and needs.

As it can be seen, these are some of the greatest benefits that come with Delaware Statutory Trust Act. In case you want to learn even more about this aspect, all you have to do is some detailed online research and look for a specialist in this domain who has several years of experience in the domain, because this way you can be sure you will understand everything clearly and you will benefit from the best results.