What Is Distributable Net Income (DNI)?
April 2, 2026
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855-758-7878
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855-758-7878
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Ask most people what a trust holds, and they’ll say stocks, bonds, and cash. That’s the picture in everyone’s head: a tidy investment account with a trustee keeping an eye on it.
The reality is much broader. Trusts can and do own real estate, closely held businesses, private equity stakes, mineral rights, and all kinds of assets that never show up on a brokerage statement. If your wealth is tied up in a building, a company you built, or a fund you invested in early, you can usually put it in a trust.
But “can a trust own it” is only half the question. The other half is whether your trustee will actually administer it.
Plenty of trust companies say no to anything that isn’t liquid and easy to value. So the practical answer often comes down to one thing: choosing a trustee with real experience handling these assets.
Unique assets are holdings that need more specialized administration than a publicly traded stock or a money market fund. They tend to be harder to value, slower to sell, and heavier on paperwork and oversight.
Common examples include:
These assets show up constantly in trusts created by entrepreneurs, real estate investors, and families passing wealth down through multiple generations. They’re often the assets that matter most, both financially and personally.
Yes. In most cases, a trust can own unique assets the same way it can own a portfolio of stocks. The trust becomes the legal owner of the asset, and the trustee holds and administers it according to the terms the grantor set out.
In practice, a trust can hold things like:
What ownership looks like depends on the asset. Here’s how the three most common ones tend to work.
A trust can own real estate directly, or hold it through an LLC that the trust owns. Many families prefer the LLC route because it adds a layer of liability protection and makes it easier to manage the property, bring in co-investors, or transfer interests over time. Either way, the trustee is responsible for seeing that the property is properly titled, insured, valued, and administered. The day-to-day work of managing tenants and maintenance can stay with a property manager or the family.
Private equity, venture, and other fund interests can sit inside a trust, but they come with their own demands: capital calls, distributions, K-1s, and valuations that don’t update daily. The trustee needs systems that can track all of that and meet the fund’s documentation and reporting requirements. A trustee built only for liquid securities often struggles here, which is one of the more common reasons these assets get rejected.
A trust can hold shares or membership interests in a closely held business, which is a powerful tool for succession planning and keeping a company in the family across generations. The trustee’s role is fiduciary oversight of that ownership stake, not running the company. The people who operate the business keep operating it. This is one area where the structure of the trust, and the willingness of the trustee, matter enormously.
Not every trust company is set up for non-traditional holdings. Their systems, staff, and risk policies are often built around assets that are simple to custody, value, and report.
Unique assets create friction in ways that liquid portfolios don’t:
Because of that, some trustees only accept marketable securities and cash. Others will take the trust but require the unique assets to be sold first. For a family that wanted to keep a business or a long-held property, that condition can defeat the entire purpose of the plan.
For a lot of families, these holdings aren’t side investments. They’re the core of the long-term plan.
A family business may produce income for children and grandchildren. Real estate may deliver both appreciation and steady cash flow, often with a low cost basis that makes selling expensive. A private equity position may be the highest-growth piece of the whole estate. Selling any of it just to satisfy a trustee’s intake rules can mean a tax hit, a lost opportunity, or the end of something the family meant to pass on.
Keeping the asset in the trust, with a trustee who can actually administer it, preserves both the value and the intent behind it.
Families holding complex assets often look to South Dakota, which is widely regarded as one of the top trust jurisdictions in the country. A few features make it especially well suited to unique assets.
Its directed and delegated trust statutes let a family separate investment authority from trust administration, so the people who already manage the business, the real estate, or the fund can keep doing so while a South Dakota trustee handles the fiduciary side. The state also allows perpetual dynasty trusts, which matters when the asset is meant to stay in the family for generations. Add no state income tax on trust income, strong asset protection, and the strongest privacy protections in the country, and you have a framework built for exactly this kind of wealth. You can read more about the advantages of South Dakota trust law and how wealthy families are using South Dakota trusts for the bigger picture.
Families with an existing trust in a less flexible state sometimes move the trust to South Dakota specifically so it can hold these assets under better terms.
Whether you’re setting up a new trust or moving an existing one, a few direct questions up front can save a lot of trouble later:
The answers tell you quickly whether a trustee is genuinely equipped for your situation or just willing to take the liquid part of it.
Independent Trust Company serves as an independent corporate trustee and has experience administering trusts that hold a wide range of unique assets. As a non-competing trustee, ITC does not manage the investments inside the trust. It works alongside the family’s existing advisors, attorneys, and asset managers, often through a directed trust structure, to evaluate complex holdings and build the right fiduciary and administrative framework around them.
The bottom line: trusts can own real estate, private equity, and family businesses. The more important question is whether your trustee is prepared to administer them. Choosing one experienced with unique assets helps preserve the holdings that matter most while providing professional administration and long-term continuity.
Yes. A trust can own real estate either directly or through an LLC that the trust holds. Many families use the LLC approach for added liability protection and easier management. The trustee is responsible for proper titling, insurance, valuation, and administration, while day-to-day property management can remain with a property manager or the family.
Yes. A trust can hold stock or membership interests in a closely held business, which is a common tool for succession planning and keeping ownership in the family across generations. The trustee provides fiduciary oversight of the ownership stake but does not run the company. The people who operate the business continue to do so.
Yes, though these holdings require a trustee equipped to handle capital calls, distributions, K-1s, and valuations that don’t update daily. Not every trust company has the systems for this, which is why private and venture fund interests are sometimes declined. A trustee experienced with unique assets can administer them properly.
Many trust companies are built around liquid, easily valued portfolios. Unique assets involve limited liquidity, complex valuations, specialized tax reporting, and ongoing oversight their systems aren’t designed for. As a result, some trustees accept only marketable securities and cash, or require unique assets to be sold before the trust is funded.
Not in the way most people fear. With a directed or delegated structure, the family’s chosen advisors and managers can keep handling the investments and operations while a South Dakota trustee handles administration. South Dakota’s flexible laws are designed to preserve meaningful family involvement while delivering the trust’s tax, privacy, and protection benefits.
If your wealth includes a business, real estate, private investments, or other unique assets, the trustee you choose is as important as the trust itself. The right partner helps you keep those assets in the family rather than forcing a sale to fit a system.
Independent Trust Company works with families and advisors across the country to administer trusts that hold both traditional and unique assets, often within South Dakota’s trust-friendly framework. Contact us today to start the conversation.
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