Louisiana Deferred Sales Trust Attorney

Capital gains taxes can take a big bite out of the profits from selling a business, real estate, or other highly appreciated asset in Louisiana. The good news is that there’s a powerful tool to help you minimize these taxes and keep more of your profits: a deferred sales trust (DST). While ultra-wealthy families have long used DSTs to protect their wealth, now you, too, can take advantage of “The Tax Tool You Didn’t Know You Had.”

At 453 Deferred Sales Trust Powered by Pennington Law, we believe in empowering individuals and families using DSTs and other proven tax strategies. A Louisiana deferred sales trust lawyer can handle all the legal work in establishing and overseeing your DST to help you make the most of your investments. Contact us today for a free, no-obligation consultation to learn more.

Why Choose 453 Deferred Sales Trust Powered by Pennington Law?

At 453 Deferred Sales Trust Powered by Pennington Law, we provide a comprehensive, all-in-one solution for your deferred sales trust needs. Unlike other providers that make you work with different providers to set up the trust, reinvest sales proceeds, and handle the tax aspects, we streamline the process. Our IRS-compliant program consolidates every step under one roof to help ensure consistency and simplicity for our clients.

Our team’s experience spans tax law and strategizing, estate planning, financial advisory, asset protection, and insurance. This broad knowledge base helps us approach your situation with the necessary insight to maximize the financial benefits of DSTs. Whether you’re selling a business, real estate, or other high-value assets like cryptocurrency, we have the knowledge to guide you.

Furthermore, firm founder Andre Pennington is widely recognized for his work in tax law, trusts, and wealth management. His insights have been featured in leading publications like The New York Times, Forbes, The Wall Street Journal, and USA Today. Pennington has also received honors from Super Lawyers, Lawyers of Distinction, and Best Attorneys in America. Clients consistently commend him for providing clear, personalized financial strategies. Our practice was also recognized as the Best Deferred Sales Trust Law Firm in the U.S. of 2024 by Best of the Best.

You’ve worked hard to build your success. Let us help you unlock the full value of your investment, so you can confidently plan for what’s next.

What Is a Deferred Sales Trust, and What Are Its Benefits?

Let’s start with the fundamentals: What is a deferred sales trust? A DST, sometimes called an installment sale trust, is a legal arrangement that helps you defer capital gains taxes when you sell a high-value asset. Establishing a DST helps preserve your wealth and reinvest the proceeds on your terms.

The following are some key benefits of using a DST:

A DST can reinvest the proceeds from selling an asset into a diversified portfolio, giving you opportunities for growth that fit your financial goals.

The tax benefits of DSTs are substantial. By deferring capital gains taxes, you retain more of your wealth upfront, providing liquidity to reinvest and grow your portfolio. 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.

There are significant benefits to using a deferred sales trust vs. a 1031 exchange. Unlike a 1031 exchange, a DST works for non-real estate assets and eliminates strict reinvestment deadlines.

A DST can lock in the value of your estate, potentially reducing the estate tax burden on your heirs.

Protect your assets using a DST to provide a financial legacy that benefits future generations without unnecessary tax losses.

Finally, a DST lets you customize reinvestment strategies and timing, giving you the freedom to adapt to changing financial circumstances.

Who Is a Deferred Sales Trust Best For?

With support from an experienced and capable legal team, many individuals and families in Louisiana can benefit from DSTs. Some people that DSTs are best suited for include the following:

Business owners planning to sell their company can benefit from spreading the tax burden from the sale over several years. A DST helps entrepreneurs to reinvest proceeds from selling their business immediately, creating a steady income stream or building additional wealth.

Property owners whose investments have significantly increased in value (such as real estate, market investments, and cryptocurrency) can sell their properties without incurring a massive tax liability by using a DST. A DST preserves more of the sale’s value, offering flexibility for reinvestment into other ventures or income-generating opportunities.

Individuals and couples approaching retirement often need to rebalance their investments to focus on stability and growth. Selling high-value assets through a DST helps retirees avoid triggering a large, immediate tax event, letting them protect their savings.

Beneficiaries of valuable assets may wish to liquidate them without losing a substantial portion to taxes. A DST helps heirs manage the proceeds effectively, preserving wealth for their own financial goals or long-term planning.

How Does a Deferred Sales Trust Work, and How is Income Generated?

DSTs are complex financial instruments, so it’s essential to get proper legal help when setting one up. Otherwise, you might make mistakes that lead to trouble with the IRS or reduce your proceeds from selling a high-value asset.

The following is an overview of how DSTs work and generate income:

You begin by transferring your high-value asset (such as a business or property) into the deferred sales trust. This step sets the foundation for deferring capital gains taxes.

Once you place the assets in the trust, the trust arranges a sale to a buyer. The sale proceeds go directly to the trust, avoiding immediate tax implications.

The proceeds from the sale remain within the trust. This structure ensures the proceeds are not distributed immediately, allowing you to distribute tax payments over time.

The trustee (the party who oversees the trust) invests the proceeds in a portfolio tailored to your financial goals. This portfolio could include stocks, bonds, real estate, or other investments. Generally, clients are exposed to investments that mitigate and, most times, eliminate the capital gains tax burden.

Finally, you receive payments from the trust over time, spreading out your income and minimizing your tax burden. This approach also provides consistent financial security. 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?

A Louisiana deferred sales trust attorney familiar with DST strategies can help you make sure your trust meets federal requirements for deferring sales taxes. The requirements for DSTs in Louisiana include the following:

A deferred sales trust must be a legitimate, independent trust managed by a qualified third-party trustee for the trust to comply with IRS guidelines.

The proceeds from the sale of your asset must go directly into the trust. This step is crucial to avoid triggering immediate capital gains taxes.

You must establish the trust before you sell your chosen assets. Failing to create the trust beforehand could disqualify you from receiving any tax benefits.

The trustee must receive fair compensation for managing the trust. This ensures compliance with IRS rules and maintains the trust’s integrity.

What Assets Are Suitable and Eligible for a DST?

A DST can help you make the most of selling many kinds of assets, including:

  • Real Estate
  • Stocks, Bonds, and Other Investments
  • Cryptocurrency
  • Business Sale
  • High-Value Collectibles
  • Business Ownership Interests
  • Securities

What Our Louisiana Deferred Sales Trust Attorneys Can Do

If you’re considering a deferred sales trust in Louisiana, our attorneys can guide you through every step to help you make confident, informed decisions.

We start by reviewing your financial circumstances and the details of the asset you want to sell. By examining factors like your cost basis, asset type, and potential tax liability, we can evaluate whether a DST or other 1031 exchange alternatives would be beneficial for your unique situation.

Once we understand your financial picture, we’ll discuss your goals and priorities with you. Whether you’re looking to reinvest proceeds, secure steady income, or preserve wealth for your family, we’ll help you determine if a DST is the right fit. This personalized approach helps us align our strategies with your long-term financial objectives.

Setting up a DST requires careful attention to IRS regulations, as any mistakes in establishing the trust can lead to substantial capital gains taxes, penalties, or fees. Our attorneys can handle every detail to verify your DST is structured so you can maximize the benefits without risking costly errors.

Finally, we design the trust to meet your specific financial needs. Our extensive experience with DSTs helps create a plan to support your immediate and long-term financial security, giving you peace of mind and control over your future.

Contact a Louisiana Deferred Sales Trust Attorney Today

A DST can be a powerful tool to help Louisiana residents grow and guard their wealth, but any mistakes when establishing one could have severe repercussions. Let 453 Deferred Sales Trust Powered by Pennington Law simplify this process for you and help you avoid costly errors. Call now or reach out online for a free, no-obligation consultation with a Louisiana deferred sales trusts attorney.