DEFERRED SALES TRUST
Become a hero to your clients, while growing your business
Looking to stand out from your competition?
Many sellers are hesitant to sell because of the capital gains taxes they’ll face with the sale of their highly appreciated asset. When you become an Estate Planning Team Member, we empower you to remove this considerable obstacle for your clients by providing you with exclusive access to our proprietary capital gains tax deferral strategy, the Deferred Sales Trust.
The DST process starts with initial due diligence. If the transaction is viable, the trust and property owner will negotiate to reach terms with regard to the asset(s). Then, the property owner transfers ownership of the property to a dedicated trust. The trust then sells the property, stock or other capital asset to the buyer. Next, the trust “pays” the client with a payment contract called an “installment sales contract.”
The contract promises to make installment payments to the seller, and those payments can even be structured to continue to future generations with additional estate planning. There are generally minimal taxes to the trust at the time of the sale since the trust often acquires the property from the client for a price that may not be materially different from the sales amount.
Should your client choose, they can defer the start date of the principal payments if they have other income and don’t need the payments right away. The tax code does not require payment of the capital gains tax until the seller starts receiving installment payments. The capital gains tax paid to the IRS is only that portion of the capital gains tax due in proportion to the number of years established in the term of the installment agreement. The Deferred Sales Trust has the ability to generate substantially more money over the long run than a direct and taxed sale. It is also superior to a direct installment sale as the concerns of a defaulting buyer are eliminated.
Additionally, even in a depressed real estate market, because the seller is making money (an interest payment) on the full value of the sale (the sales price) and not the net after tax dollars, your seller clients can reduce their price, SELL NOW, and still make out better over time via proper tax planning with a qualified tax professional.
Here are just a few of the ways your clients and prospects can benefit from a DST:
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Tax Deferral: When appreciated property is sold, tax on gain is deferred until receipt of payments.
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Estate Tax Benefits: Accomplishes an estate freeze for estate tax purposes.
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Maintains Family Wealth: Helps to maintain wealth within the family.
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Estate Liquidity: Converts an illiquid asset into monthly payments.
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Retirement Income: Provides a stream of income for retirement.
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Probate Avoidance: With proper estate planning.
For more than 25 years, Estate Planning Team has been helping sellers defer their capital gains taxes through the Deferred Sales Trust
By joining Estate Planning Team and offering the Deferred Sales Trust, you’ll not only deliver incredible value to your clients, but you’ll establish a unique and compelling competitive advantage, and become part of a network of the nation’s top legal and financial service experts dedicated to helping professionals just like you preserve their client’s wealth and protect their estates.
As an Estate Planning Team member, you will…
- Learn how to connect with professional partners that generate referral business.
- Receive access to training, resources and a turnkey marketing plan with step-by-step instructions on how to earn more business.
- Generate leads with your own personalized website.
- Receive guidance on how you can help your clients defer capital gains through the Deferred Sales Trust or other innovative tax solutions.
- Build your business as you deliver powerful tax deferral solutions, and stand out from your competition.
“Joining the Estate Planning Team and incorporating the Deferred Sales Trust into my financial advisory practice has transformed my business and fast tracked it to a level that I could not have imagined as an independent producer. EPT’s unique marketing support and offerings have enabled me to find bigger prospects and have a ton of success establishing long term successful relationships.”
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John Balmer
Financial Advisor