Deferred Sales Trust™ Structure

When deciding to sell a business, real estate, a highly appreciated stock position or other appreciated assets, capital gains may stop you from proceeding. For the owner, who does not want to continue with the same business, a Deferred Sales Trust™ (DST™) may be the answer. IRC 453 of the Internal Revenue Code, used by The Estate Planning Team for the Deferred Sales Trust™, provides investors a solution whereby deferring capital gains upon sale of their asset may become the only good option. Sale proceeds, cash, are redirected into the trust and into whichever types of investments suit their needs, income requirements, and objectives.

 

Step one:       Seller Transfers the Asset into the Trust

Step Two:      Trust then sells the asset to a cash Buyer

Step Three:   Cash is invested per the contract decided by the Seller and Trustee

Step Four:     Cash distributions paid to original owner from new business and investments