The tax impact of selling a business or property can feel overwhelming. With the right team by your side, you can make a smooth transition and reduce your risk.

A deferred sales trust (DST) is a legal entity that you transfer ownership of your asset into. It is a way to sell an investment property without paying capital gains taxes. It is similar to a 1031 exchange but without the timeline constraints.

DSTs provide a number of benefits, including the ability to split up your tax liability and defer it into future years. This allows you to invest more of your sale proceeds and earn interest while reducing your taxable income. It can also be used to avoid the 10% and 20% federal estate and gift tax on appreciated assets, which can be a significant burden for families with substantial wealth.

Our estate planning specialists can help you determine the best use of a DST for your situation. Our team will take a holistic view of your financial goals and craft a plan that takes into account your overall tax posture and your family’s succession needs.

It is important to note that the DST strategy must be properly managed or it could be declared a sham by the IRS and the profits would be subject to full capital gains taxation immediately upon receipt. Our team mitigates this risk through formal vetting of our trustees and investment advisor professionals and oversight by our compliance and advisory boards.