Leaving a legacy

Inventory has seen a modest increase compared to this time last year, while sales activity is up 12%, reflecting sustained demand, particularly within the higher-end segment of the market.

Market fluctuations and economic shifts could result in opportunity, as outlined in our Mid-Year Luxury Outlook report. This comprehensive report examines how fluctuating interest rates, shifting trade dynamics and changing homebuyer preferences are reshaping our markets: View Report

A home by the water is more than an investment. It’s where families gather, memories are made, and legacies take shape. In Coastal Delaware, property owners have a unique opportunity not only to enjoy the lifestyle now but also to pass on something meaningful to the next generation.

With the proper structure, your beach home or income-producing property can serve as a vehicle for long-term family wealth and tax-efficient transfer. Here are several ways to position your property as part of a multigenerational legacy strategy.

Delaware trust structures and estate tax advantages

Delaware is one of the most favorable states for estate planning. Since January 1, 2018, the state has imposed no estate or inheritance tax, a key advantage when planning a long-term legacy.

Delaware also offers powerful tools, such as the Delaware Statutory Trust (DST), which allows for fractional ownership of real estate, streamlined inheritance, and eligibility for 1031 exchanges. This is ideal for families seeking both control and continuity.

High-net-worth individuals may also benefit from non-grantor trust structures, which can provide state and local tax (SALT) deduction workarounds by creating multiple trusts, each of which is eligible for up to $10,000 in SALT deductions.

Gifting property to heirs: pros and pitfalls

The IRS gift tax exclusion allows individuals to gift up to $19,000 per recipient per year in 2025 without triggering federal gift tax obligations. For couples, this means gifting $38,000 annually to each child or grandchild, supporting gradual wealth transfer.

However, direct gifting of appreciated property passes on your cost basis, which may expose heirs to significant capital gains when they eventually sell. A better approach may be using a trust, which can reset the basis upon your passing and protect the property from creditor claims or marital division.

Structuring for smooth succession and control

Trusts can do more than reduce taxes. They enable thoughtful distribution, safeguard long-term control, and prevent probate delays. Irrevocable trusts, in particular, can lock in strategic outcomes, ensuring the property remains in the family and that your intentions are carried out.

Delaware Statutory Trusts (DSTs) also simplify inheritance logistics. By converting a property into shares, multiple heirs can each inherit fractional ownership without the complications of shared title or forced sales.

A legacy that lives on

Whether your home is a second residence, a short-term rental, or a long-held family property, positioning it strategically can help you build wealth across generations, without sacrificing the moments that make it meaningful.

If you’re interested in exploring Delaware trust structures, gifting strategies, or other options, I’d be happy to connect you with local experts and resources. -Henry