623-229-0463 Georgia Deferred Sales Trust Attorney
Are you looking for ways to manage the tax implications of selling a high-value asset? A deferred sales trust could be the answer. Many people are not aware of deferred sales trusts, which have historically been utilized by the ultra-wealthy, but you can think of it “The Tax Tool You Didn’t Know You Had.” These trusts can open up new possibilities for your financial planning, allowing you to defer taxes and optimize your asset management.
At 453 Deferred Sales Trust Powered by Pennington Law, our Georgia attorneys have a thorough understanding of how to effectively create and manage deferred sales trusts. We work with you to align your trust with your financial goal and provide a clear path to managing your asset sales without the immediate tax burden.
Don’t miss the opportunity to learn how a deferred sales trust can benefit you. Contact us today for a free initial consultation with a Georgia deferred sales trust attorney and start planning with confidence.
Why Choose 453 Deferred Sales Trust Powered by Pennington Law?
If you need help mitigating taxes while managing the sale of your valuable assets, look no further than 453 Deferred Sales Trust Powered by Pennington Law. We offer comprehensive trust management services and handle everything from setting up irrevocable trusts to preparing tax filings.
Unlike most companies that rely on multiple professionals across different agencies, we provide a full, IRS-compliant program right in-house. This approach simplifies the process for you by smoothly coordinating all aspects of your trust and financial management under one roof.
Our attorneys bring together a wide range of skills and experiences, covering key areas such as tax law, estate planning, financial advisory, wealth management, and asset protection. When you work with our well-rounded team, every angle of your deferred sales trust is managed by someone who understands the nuances of these complex legal instruments.
Leading our team is Andre Pennington, a principal attorney whose knowledge of tax, trusts, estate planning, and investment services has earned national recognition. He has been featured in prestigious publications like The New York Times, Forbes, Inc., The Wall Street Journal, and USA Today. His excellence in the legal field has also earned him places on prestigious annual lists like Super Lawyers, Lawyers of Distinction, and Best Attorneys in America. Our practice was also recognized as the Best Deferred Sales Trust Law Firm in the U.S. of 2024 by Best of the Best.
Our team’s focus is on maximizing investment value. We are adept at securing the full value of your investments to ensure that the fruits of your hard work in building your business are fully realized. Choosing 453 Deferred Sales Trust means partnering with a firm that is committed to your financial success and legal security.
What Is a Deferred Sales Trust and What Are Its Benefits?
So, what is a deferred sales trust (DST)? Also known as an installment sale trust, it’s is a type of trust that lets you defer capital gains tax on the sale of property. This deferral is possible because a DST allows you to gradually receive the proceeds from an asset sale over a period of time.
The key financial benefits of DSTs include the following:
A DST allows you to reinvest the money that would have been paid in taxes into other income-generating investments.
The tax benefits of DSTs come from the deferral of capital gains taxes due at the sale of your asset, maintaining more of your capital for future investments. Oftentimes, we at 453 Deferred Sales Trust Powered by Pennington Law employ financial strategists that mitigate and, most times, eliminate the impact of the capital gains tax.
Another benefit of a deferred sales trust vs. a 1031 exchange is that a DST does not restrict the type of investments you can make.
Using a DST can freeze the taxable value of your estate assets, potentially reducing future estate taxes that your heirs might have to pay.
You can structure a DST to provide for future generations and preserve family wealth over a longer period.
With a DST, you gain flexibility and control over the payment schedule of your sale proceeds.
Who Is a Deferred Sales Trust Best for?
A deferred sales trust is an excellent option for those planning significant financial changes. This trust structure provides a flexible and tax-efficient strategy for managing large asset sales and planning for future financial stability.
Business owners looking to sell their companies find these trusts particularly valuable as they allow for the deferral of capital gains tax, which preserves more capital for reinvestment or retirement. Similarly, people with investment properties that have significantly appreciated — such as market investments and cryptocurrency — can benefit from DSTs by delaying taxes and maximizing financial returns from sales.
For those approaching retirement, DSTs offer a strategic way to sell off assets and diversify investment portfolios without a heavy immediate tax burden. Additionally, those who have inherited valuable properties and are considering selling can use DSTs to manage potential taxes more effectively and retain more of their inherited wealth.
How Does a Deferred Sales Trust Work and How Is Income Generated?
DSTs are 1031 exchange alternatives that offer a streamlined way to manage asset sales while deferring taxes and generating income. Here’s a step-by-step look at how DST strategies work:
- Transfer of Property or Business to the Trust – First, you transfer the asset you are selling into the trust to ensure that the trust legally owns the asset before it is sold.
- Trust Sells the Asset – Once the trust holds the asset, it is responsible for selling it and converting the asset into liquid funds that can be actively managed and reinvested.
- Sale Proceeds Held in Trust – After the sale, the proceeds from the asset are held within the trust to ensure that the funds remain secure and are managed according to the trust agreement.
- Investment of Proceeds – The money from the sale is then invested according to strategies that aim to generate steady returns. This allows you to grow the proceeds through various investment strategies while still deferring and, most times, eliminating capital gains tax consequences.
- Installment Payments to the Investor – Finally, the trust distributes the returns from these investments to you in installments that are scheduled to meet your financial needs. Your capital gains tax liability will spread and, most times, be minimized over a period of time, rather than your having to pay it all at once.
What Are the Requirements for a Deferred Sales Trust?
Deferred sales trusts have specific requirements that they must meet to ensure their validity and effectiveness in deferring taxes and managing proceeds. Here’s an overview of what is necessary:
The trust must be managed by an independent third party who acts as the trustee to ensure the trust operations are legally compliant and objective.
All proceeds from the sale of the asset must be transferred directly to the trust, avoiding any direct payment to the seller to qualify for tax deferral.
The trust must be established before the asset is sold to ensure that the trust legally owns the asset at the time of the sale.
The trustee receives compensation for their services, typically a percentage of the assets under management, which must be agreed upon in the trust documents.
What Assets Are Suitable and Eligible for a DST?
A deferred sales trust can be a versatile tool for managing various types of assets. The following are some of the types of assets you can include in a DST:
Proceeds from the sale of a privately held business can be placed into a DST to allow the seller to defer taxes while maintaining income.
Shares or interests in businesses like corporations, partnerships, and LLCs are eligible for transfer into a DST.
Commercial, residential, and investment properties can all be sold with the proceeds directed into a DST.
Marketable securities like stocks and bonds can also be included in a DST.
Digital assets such as Bitcoin and Ethereum are increasingly being considered suitable for DSTs as they gain acceptance as legitimate investment vehicles.
A wide range of traditional investments, including stocks and bonds, can be managed through a DST.
Items such as art, antiques, and other collectibles that have significant value can also be placed in a DST.
What Our Georgia Deferred Sales Trust Attorneys Can Do
When considering the sale of a valuable asset, working with experienced deferred sales trust attorneys can significantly enhance your financial strategy. Our legal team in Georgia is here to guide you through the entire process of setting up and managing a deferred sales trust.
Our attorneys will start by reviewing your financial circumstances and the details of your asset sale to understand the full scope of your situation and how to integrate a DST. We will then discuss your needs and long-term goals to determine whether a deferred sales trust is the right financial tool for you. This personalized approach allows us to recommend strategies tailored specifically to your objectives.
If we determine that a DST is a suitable tool for your needs, we can establish the deferred sales trust correctly and thoroughly. We will work diligently to maximize the trust’s tax benefits and avoid incurring unnecessary taxes, penalties, fees, or interest.
Our Georgia deferred sales trust attorneys also can structure your deferred sales trust to meet your unique goals. This customization allows for a more controlled and beneficial financial outcome, ensuring that your DST serves as a robust tool for managing your asset sale and subsequent investments.
Contact a Georgia Deferred Sales Trust Attorney Today
Ready to take the next step in managing your asset sale with a deferred sales trust? The Georgia deferred sales trust lawyers at 453 Deferred Sales Trust Powered by Pennington Law are here to help. Contact us today for a free initial consultation, where we’ll discuss your specific needs and tell you how a deferred sales trust can work for you.