Helping individuals preserve their wealth
Expert consulting for strategic business solutions.
Helping individuals preserve their wealth
Expert consulting for strategic business solutions.
About Overture Strategic Partners
What is a Deferred Sales Trust?
What is a Deferred Sales Trust?
What is a Deferred Sales Trust?
The Deferred Sales Trust is a type of IRC Section 453 installment sale, also known as a “seller carry-back” sale. Under this code section, the seller can achieve significant tax deferral benefits by not receiving actual or constructive receipt of the proceeds at the time of the sale, instead receiving payments made to them over time.
The Deferred Sales Trust is a type of IRC Section 453 installment sale, also known as a “seller carry-back” sale. Under this code section, the seller can achieve significant tax deferral benefits by not receiving actual or constructive receipt of the proceeds at the time of the sale, instead receiving payments made to them over time. Moreover, the Deferred Sales Trust has greater flexibility than a conventional installment sale with respect to investments, risk management and the repayment timeframe.
Our Services
What is a Deferred Sales Trust?
What is a Deferred Sales Trust?
The Deferred Sales Trust process starts with initial due diligence. If the transaction is viable, the trust and seller of a highly appreciated asset will negotiate to reach terms with regard to the asset(s). Then, the property owner transfers ownership of the property to a dedicated trust. The trust then sells the property, stock or
The Deferred Sales Trust process starts with initial due diligence. If the transaction is viable, the trust and seller of a highly appreciated asset will negotiate to reach terms with regard to the asset(s). Then, the property owner transfers ownership of the property to a dedicated trust. The trust then sells the property, stock or other capital asset to the buyer. Next, the trust “pays” the client with a payment contract called an “installment sales contract.”
The contract promises to make installment payments to the seller, and those payments can even be structured to continue to future generations with additional estate planning.
The trust payments are based on what the seller/taxpayer arrange and pre-negotiate with the DST trained and approved Trustee. Depending on the seller’s income goals and other objectives, the amount and length of term of the installment sales note are negotiated with the seller and subject to their approval. When structured correctly, a Deferred Sales Trust allows the seller of a capital asset to defer capital gains taxes, earn interest on the sale proceeds, and diversify the investments securing their note.s.
Our Approach
What is a Deferred Sales Trust?
Our Approach
At Overture Strategic Partners, we believe that collaboration is key to success. We work closely with our clients to understand their challenges and goals, and develop solutions that are tailored to their unique needs. Our approach is transparent, results-driven, and designed to help businesses thrive.
Contact Us
For more information, please call or email at:
(510) 747-8034
Hours
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