DST Advisors | How It Works

HOW IT WORKS

Owners of highly appreciated assets are reluctant to sell because of the capital gains tax. The Deferred Sales Trust™ (DST) offers an attractive and flexible tax deferral alternative to a 1031 exchange, which can result in significantly decreasing the capital gains taxes that would otherwise be recognized in the year of the sale. The DST can defer capital gains taxes on the sale of almost any type of highly appreciated asset including, but not limited to:

Businesses

Professional Practices

Commercial Real Estate

Investment Properties

High End Primary Residences

Large Stock Positions

Valuable Artwork and Collectibles

Some of the benefits that the Deferred Sales Trust™ provides owners of highly appreciated assets (and the advisors and service providers acting on their behalf) include:

Flexible Payment Options

Liquidity and Diversification

Enhanced Retirement Income

Maintain Family Wealth

Potential Estate Tax Planning Benefits

1031 Exchange Rescue

Sever Partnership Interests

DST Transaction Overview

The transaction flow starts with the formation of a Deferred Sales Trust™ (DST) and appointment of a third party DST trustee. The client then sells the assets to the trust in return for a secured DST installment contract. The DST then sells the assets to the buyer in exchange for cash. The client will approve the asset allocation provided by their financial advisors. The client will receive DST installment payments made from the trust. But there is more....

DST Transaction Overview

The transaction flow starts with the formation of a Deferred Sales Trust™ (DST) and appointment of a third party DST trustee. The client then sells the assets to the trust in return for a secured DST installment contract. The DST then sells the assets to the buyer in exchange for cash. The client will approve the asset allocation provided by their financial advisors. The client will receive DST installment payments made from the trust. But there is more....

Post Transaction Closing

Following the closing of the initial transaction, the funds received from the sale of the client's assets are used to purchase investments under the supervision of the appointed financial advisor based on the asset allocation approved by the client. The assets that can be invested in include, but are not limited to, stocks, bonds, and real estate. Interest and investment income are paid to the trust account and then payments of interest and principal are made to the client under the terms of the DST promissory note that was put in place upon the establishment of the DST.

Post Transaction Closing

Following the closing of the initial transaction, the funds received from the sale of the client's assets are used to purchase investments under the supervision of the appointed financial advisor based on the asset allocation approved by the client. The assets that can be invested in include, but are not limited to, stocks, bonds, and real estate. Interest and investment income are paid to the trust account and then payments of interest and principal are made to the client under the terms of the DST promissory note that was put in place upon the establishment of the DST.