How to retire from being a landlord: A Delaware Statutory Trust (DST) is a legally recognized trust formed under Delaware law, primarily used for business purposes, such as holding real estate or other assets. It’s a flexible, separate legal entity where a trustee manages assets for the benefit of investors (beneficiaries), who hold beneficial interests rather than direct ownership. DSTs are commonly used in real estate for 1031 exchanges, allowing investors to defer capital gains taxes by reinvesting proceeds from property sales into like-kind properties. They offer limited liability, passive investment opportunities, and streamlined management, with the trustee handling operations. However, investors have limited control, and DSTs are subject to specific IRS rules for tax benefits.
If you have heirs, you can gift money,
tax-free to them, during your lifetime. Experience the joy of seeing their lives improved while you live. The federal estate tax is levied on the estate of the deceased, not the beneficiary. For 2025, the federal estate tax exemption is $13.61 million per individual. If the Florida decedent’s estate is valued at or below this amount, no federal estate tax applies, and Johnny would receive the $2 million without federal estate tax liability. If the estate exceeds $13.61 million, the estate may owe tax (up to 40% on the excess), paid by the estate before distribution, not by Johnny.
Citation: Internal Revenue Service, "Estate Tax," updated for 2025,
Estate tax | Internal Revenue Service, which details the 2025 exemption amount of $13.61 million and clarifies that estate tax is the responsibility of the estate.
Additional Reference: IRS Publication 559, "Survivors, Executors, and Administrators," 2024,
Publication 559 (2024), Survivors, Executors, and Administrators | Internal Revenue Service, which explains that beneficiaries typically do not pay estate tax on inheritances.