WHO WE HELP
Trustees
Trusted Growth Strategy
The DST Trustee is an essential part of the Deferred Sales Trust strategy’s success. The DST is an irrevocable trust that utilizes installment sale treatment under Internal Revenue Code §453 in order to defer the taxes due on the sale of a business, real property, or other capital assets.
The DST process starts with initial due diligence. If the transaction is viable, the trust and seller of a highly appreciated asset 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.
The trust payments are based on what the seller/taxpayer arrange and pre-negotiate with the DST trained and approved Trustee. Depending on the seller’s income goals and other objectives, the amount and length of term of the installment sales note are negotiated with the seller and subject to their approval. When structured correctly, a DST allows the seller of a capital asset to defer capital gains taxes, earn interest on the sale proceeds, and diversify the investments securing their note.
Estate Planning Team has recognized the need for highly experienced, trained DST Trustees to manage the DSTs for each seller/creditor who holds a secured interest in the trust. Each DST trustee is vetted and approved by EPT and must have a legal, tax, or financial background to be considered. If interested, please contact us to learn more about DST Trusteeship.
What can you do with the DST?
- Sellers are provided with diversification, flexibility, and liquidity.
- You’ll have the opportunity to build stronger relationships with your clients by providing the tax deferral solution they’ve been looking for.
- Grow your business with new networking relationships.
If you’re a top professional with a financial and/or tax background, there may be an extraordinary opportunity for you to become a Deferred Sales Trust (DST) Trustee.
As a DST trustee, you will earn an annual fee based on a percentage of assets in the trust. Our average DST case is between $1M-$3M, and some cases have exceeded $50M.
Active trustees have the potential to make well over $100k annually, and are provided with:
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Access to the DST, which can help to set you apart from the competition, build stronger relationships with clients and prospects, and generate more business.
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Access to tax and legal professionals that present and execute the Deferred Sales Trust for your prospects and clients.
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A marketing plan that will help you use the DST to connect with high-net-worth prospects.
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A personalized DST lead generation website and helpful guides to support your efforts.
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Help networking with other professionals to build mutually beneficial relationships.