DELAWARE STATUTORY TRUST INVESTMENTS (DSTS) ATTORNEYS BASED IN NEW YORK

As a legally recognized trust set up for business purposes, a Delaware Statutory Trust (DST) does not necessarily have to be based in Delaware. DSTs are private agreements for property and are usually offered as a replacement for investors who are looking to defer their capital gains taxes. If you have suffered from unexpected losses due to your investment in a DST, under the misguided advice of your broker or their failure to conduct due diligence, legal recourse is available to you.

Get in touch with our securities litigation attorneys at Weltz Law by calling (877) 905-7671 to discuss what can be done.

What Are DSTs?

The Delaware Statutory Trust Act, or the DST Act, was adopted in 2002. This allowed for more freedom in defining a contract between the trustor and trustee as previous terms were deemed disadvantageous. Allowing both parties more freedom to determine their respective liabilities as well as the way in which a trust is administered, this allows smaller investors to own a stake in larger, institutional commercial properties as an individual owner within a trust. To this end, each investor also receives their fair share of any income, tax gains and appreciation associated with the property.

However, investing in DSTs does not come without its risks. Although it allows investors to defer their capital gains taxes, a DST is an illiquid asset and investors do not get a say in property operations. They also have no control over when the investment will be sold and do not have the ability to add new loans or renegotiate the terms of their existing loan.

Proving DST Investment Losses

DSTs are considered “non-conventional investments” (NCIs) by FINRA. Unlike more conventional forms of investments such as ETFs and mutual funds, stockbrokers have additional requirements to fulfill when selling NCIs to investors. This includes conducting due diligence and a suitability analysis alongside highlighting all risks and rewards associated with it to the investor, alongside many others. If your broker has failed to balance all considerations before making a DST recommendation to you, resulting in financial losses on your end, you could have a case.

Recovering Damages from DST Investment Losses

If you have misguidedly made a DST investment through a brokerage firm and suffered unexpected losses, FINRA arbitration is open to you. As a fair and effective way of resolving securities disputes, investors who are unfamiliar with their legal rights and the arbitration process will benefit from engaging an experienced attorney to fight for their best interests. At Weltz Law, our attorneys have a collective experience of over 30 years in securities arbitration and can represent you to maximize your claim.

Meet With Our Attorneys to Discuss Your Case. We Represent Clients Nationwide.

Have you made a loss from DSTs because of your broker’s failure to conduct due diligence? If so, come to Weltz Law and we can help you explore your legal options, starting with FINRA arbitration representation. In certain cases, we operate on a contingency basis, where you do not pay any fees unless a positive recovery has been made. Contact us to see if you're eligible.