623-229-0463 Oregon Deferred Sales Trust Attorney
When you’ve made an investment and watched it grow in value after years of hard work, it’s frustrating to lose a chunk of your profits to capital gains taxes. But what if there was a way to make more money from your investment and defer capital gains tax? A deferred sales trust can help you keep more of your profits while providing resources to grow your wealth. It might just be “The Tax Tool You Didn’t Know You Had.”
At 453 Deferred Sales Trust Powered by Pennington Law, we believe everyone should have the chance to benefit from the same tax strategies that the ultra-wealthy have long used. Our experienced Oregon deferred sales trust lawyers can handle all the work of establishing and overseeing a DST while you sit back and enjoy the proceeds.
Call now or complete our contact form for a free, no-obligation consultation, and you’ll discover the benefits of a DST.
Why Choose 453 Deferred Sales Trust Powered by Pennington Law?
Deferred sales trusts are powerful but complex, so it’s vital to get sound advice from an attorney who understands these financial instruments. Here are a few reasons to choose our firm to create and oversee your deferred sales trust:
- Our all-in-one service simplifies the deferred sales trust process. We handle creating irrevocable trusts, trustee duties, financial reinvestments, and filing the necessary taxes—all under one roof. Many other companies rely on separate professionals, but our streamlined program complies fully with IRS guidelines.
- Firm leader Andre Pennington is nationally recognized for his in-depth knowledge of and experience with tax, trusts, estate planning, and investment services. His work has been featured in The New York Times, Forbes, , The Wall Street Journal, and USA Today. He’s also earned accolades in 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.
- We help you secure the full value of your investment. After years of building your business, you deserve a strategy that maximizes your hard-earned assets.
- Our team’s comprehensive knowledge spans tax law, estate planning, wealth management, insurance, asset protection, and fiduciary matters. This foundation helps design and manage your DST to fit your specific goals.
What Is a Deferred Sales Trust, and What Are Its Benefits?
So, what is a deferred sales trust (DST)? Sometimes called an installment sale trust, a DST is a legal arrangement that lets you sell appreciated assets while deferring capital gains taxes. This strategy helps you reinvest proceeds efficiently and plan for long-term financial goals.
Some financial benefits of DSTs include the following:
A DST enables you to reinvest your sale proceeds into diverse assets. With proper management, this approach fosters consistent financial growth.
The tax benefits of DSTs are significant. By deferring capital gains taxes, you can use more funds for additional 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.
When it comes to a deferred sales trust vs. 1031 exchanges, DSTs are usually the better option. The primary reason for this is that a DST doesn’t limit you to like-kind property investments. You can diversify across asset classes to suit your needs.
A DST can help limit your heirs’ estate tax liabilities. By freezing the estate’s taxable value, you can pass more wealth to your beneficiaries.
A DST provides tools to protect your assets and maintain your family’s financial security.
Finally, a DST offers unmatched flexibility. You can structure payments and investments in a way that aligns with your personal goals and lifestyle.
Who Is a Deferred Sales Trust Best For?
Deferred sales trusts and other 1031 exchange alternatives can work well for people in many different financial situations. Some people who may benefit from establishing a DST include the following:
- Business Owners Selling Their Company – If you’re ready to sell your business or your ownership stake, a DST can help you spread the tax impact over several years. This approach minimizes your immediate financial burden and allows for better cash flow management.
- Investment Property Owners – Selling a property that has significantly appreciated, such as real estate, market investments, and cryptocurrency, often comes with a large tax bill. A DST lets you defer those taxes, giving you more freedom to reinvest or use the proceeds for other purposes.
- Pre-Retirees Diversifying Assets – If you’re nearing retirement, selling highly appreciated assets to diversify your portfolio can trigger significant taxes. A DST helps you sell your assets without a substantial immediate tax event, preserving more of your wealth for retirement.
- Heirs Managing Inherited Property – If you’ve inherited valuable property and wish to sell it, a DST can help you manage the tax implications while maximizing the benefits of your inheritance.
If you have questions about whether a deferred sales trust is right for you, our lawyers can review your situation and outline your options.
How Does a Deferred Sales Trust Work, and How Is Income Generated?
Our attorneys can give you a detailed breakdown of how deferred sales trusts work and generate income. In the meantime, here’s an overview of the basic steps:
The owner transfers their appreciated asset, such as a business or property, into a deferred sales trust, creating a legal separation from their ownership.
The trust sells the transferred asset to a buyer. Since the trust owns the asset, the owner avoids an immediate taxable event.
The sale proceeds remain within the trust to protect and save them for later reinvestment. This step defers capital gains taxes for the owner.
The trustee (the person or entity who oversees the trust) reinvests the proceeds into income-generating opportunities, such as stocks, bonds, real estate, or other financial instruments. The trustee tailors these investments to meet the owner’s financial goals. This allows you to grow the proceeds through various investment strategies while still deferring and, most times, eliminating capital gains tax consequences.
Finally, the trust distributes payments to the original owner over time, based on a predetermined schedule. These payments provide steady income while spreading out the owner’s tax liability. 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?
An Oregon deferred sales trust attorney can make sure your DST meets IRS rules, such as:
First, the DST must be an independently managed trust with oversight from a qualified third-party trustee. The seller cannot control the trust directly, as this would compromise its status as a separate legal entity.
After the trust sells the chosen asset to a buyer, all proceeds must go directly to the trust. The funds cannot go to the seller first, as this would trigger an immediate taxable event. Since the trust holds the proceeds, the owner complies with IRS tax deferral rules, creating opportunities for the trust to reinvest the proceeds.
The asset’s owner must establish the trust before they sell their chosen asset. Setting up a deferred sales trust after the transaction is complete disqualifies the proceeds from deferred capital gains taxes. Planning ahead is critical to ensure the trust can receive the funds.
Finally, all parties involved in managing the trust, including the trustee and financial professionals, must receive reasonable compensation. This requirement means the trust has proper oversight, adheres to fiduciary responsibilities, and complies with IRS legal and tax standards.
What Assets Are Suitable and Eligible for a DST?
DSTs can help you maximize your return on many kinds of assets, such as:
- Whole Businesses
- Business Ownership Interests
- Real Estate
- Securities
- Cryptocurrency
- Stocks, Bonds, and Other Investments
- High-Value Collectibles
What Our Oregon Deferred Sales Trust Attorneys Can Do
Our Oregon deferred sales trust lawyers offer comprehensive support to guide you through the legal process and help you make informed decisions about your financial future. Here’s what we can do for you if you’re interested in a deferred sales trust:
We start by analyzing your financial situation and the specifics of whatever asset you wish to sell. This review helps us understand the potential tax implications of the sale and the DST strategies available to you.
Our attorneys work closely with you to assess your financial objectives and determine whether a deferred sales trust aligns with your goals. If a DST isn’t the best solution, we’ll help you explore other options.
Setting up a deferred sales trust requires precision and attention to minute details. Our team can establish the trust properly to make sure it complies with IRS guidelines. This minimizes your risk of losing tax benefits, paying capital gains taxes prematurely, or facing penalties, fees, or interest.
We can structure your deferred sales trust to align with your unique needs. Whether you want installment payments spread over time to reduce your capital gains tax liability or to defer taxes entirely by reinvesting the sale proceeds, we’ll create a plan that works for you.
Contact an Oregon Deferred Sales Trust Attorney Today
Our Oregon deferred sales tax lawyers are ready to speak with you about the opportunities these financial instruments provide. Call 53 Deferred Sales Trust Powered by Pennington Law today or reach out online for a free consultation.