The Approaching Wealth Transfer: A Trillion-Dollar Catalyst for DSTs
The United States is on the cusp of the largest wealth transfer in history. Over the next two decades, Baby Boomers and older generations are projected to pass down an estimated $124 trillion to spouses, heirs and charitable causes.[i] Of this staggering amount, nearly $100 trillion will flow directly from Boomers, who today hold a dominant share of the nation’s wealth.[ii]
Real estate is at the center of this wealth transition.
Baby Boomers alone control roughly $19 trillion in U.S. real estate, almost half of the total market.[iii] For many, real estate has been both a store of wealth and a source of income. But as owners age, the responsibility of managing properties — collecting rents, coordinating repairs and navigating tax obligations — can become overwhelming. Moreover, forecasts suggest the next generation of heirs is even less inclined to manage complex real estate holdings directly.
The first stage of the wealth transfer is expected to see more than $40 trillion moving to surviving spouses and widows, many of whom prioritize simplicity and stability.[iv] From there, assets will flow to heirs who are often younger, professionally mobile and more comfortable with passive investment strategies than active property management.
What’s the turnkey solution to the massive real estate wealth transfer before us?
Delaware statutory trusts (DSTs) are the tax-advantaged real estate investment platform primed to answer the approaching trillion-dollar wave of real estate inheritance. DSTs offer a turnkey, passive ownership structure that preserves the benefits of real estate investing — income potential, diversification and tax efficiency — without the day-to-day headaches of property management like toilets, tenants and trash. They are especially powerful tools for investors seeking to defer capital gains taxes through 1031 exchanges, allowing wealth to compound across generations with minimal friction.
- For investors in older generations, utilizing a Section 1031 exchange via a DST now, means that heirs can receive a step up in tax basis later, eliminating capital gains taxes.
- For those inheriting rental or business real estate, transferring that family wealth to a Delaware statutory trust investment allows for passive income and continued wealth accumulation.
DSTs provide the ideal bridge: a professionally managed, tax-advantaged vehicle that converts ownership into streamlined wealth preservation.
For investors and their advisors, the implications are clear. With trillions in real estate wealth in motion, DSTs are poised to become a default solution for families seeking continuity, efficiency, tax-benefits, income generation and peace of mind.
Capital Square was founded by a pioneer in fractionalized investments and tax-advantaged real estate, with Delaware statutory trusts as one of our specialties since the beginning. If you have questions, our expert team is ready to provide the context and clarity you need.
Discover our open DST offerings and connect today.
[i] Chayce Horton, “The Cerulli Report—U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024,” Cerulli, December 2024.
[ii] Ibid.
[iii] AJ LaTrace, “Boomers now hold nearly 40% of US housing wealth,” Real Estate News, July 22, 2025.
[iv] Chayce Horton, “The Cerulli Report—U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024,” Cerulli, December 2024.
Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.
