Step by step to Close
deferred Sales Trust
Enter deal information with the free deferred sales trust calculator
Answer 12 questions about the asset you are selling now. If your tax liability is greater than $100,000 and net proceeds into the deferred sales trust is greater than $500,000, then let’s schedule a Free Call with the deferred sales trust tax attorney’s to discuss your particular deal and see if we can offer some help.
Conference call with DST attorney
After our call, if the Deferred Sales Trust seems suitable, sign conditional engagement agreement. You only pay a fee to Capital Gains Tax Solutions and DST attorneys if and when you choose to close on the deferred sales trust.
IMPORTANT DEFERRED SALES TRUST LEGAL LANGUAGE FOR PRIMARY HOME OWNERS: Please note if you plan to use the DEFERRED SALES TRUST you will need your real estate broker to add the following language to an addendum before the buyers has already removed all contingencies: “SELLER HAS THE RIGHT TO A DEFERRED SALES TRUST AT NO ADDITIONAL COST TO THE BUYER.” You will also need to choose an escrow company who will cooperate with the deferred sales trust transaction. Please choose one of our preferred partners here. We have found it is very difficult to move escrow companies once one is opened.
IMPORTANT DEFERRED SALES TRUST LEGAL LANGUAGE FOR COMMERCIAL REAL ESTATE AND BUSINESS OWNERS: Please note if you plan to use the DEFERRED SALES TRUST you will need your real estate or business broker add the following language to an addendum before the buyers has already removed all contingencies: “SELLER HAS THE RIGHT TO A DEFERRED SALES TRUST OR A 1031 EXCHANGE AT NO ADDITIONAL COST TO THE BUYER.” You will also need to choose an escrow company who will cooperate with the deferred sales trust transaction. Please choose one of our preferred partners here. We have found it is very difficult to move escrow companies once one is opened.
What if the buyer has removed all contingencies? We have a solution for Investment Real Estate and Business owners only here; the DST can be closed on day 46-181 of a 1031 exchange, however, the funds will need to be with a 1031 Qualified Intermediary Company who will allow this. Please note a 1031 exchange company must be engaged before escrow closes and the funds must be sent directly to them for the DST to work. Not all 1031 QI companies know about the DST at this point. Please choose one of our preferred partners here. We have found it is very difficult to move 1031 companies once the funds are with a 1031 QI.
Prepare to Close
Questions regarding investments, your concerns, CPA questions are discussed. DST language provided to escrow. Choose name of Deferred Sales Trust, provide purchase and sale agreement. Choose financial Advisor or use one of our preferred partners. Complete investment risk tolerance questionnaire.
Deferred Sales Trust Closed
DST funds are received. Funds are invested with financial Advisor according to your (noteholder’s) risk tolerance. Once invested, the noteholder will receive monthly note payments based on note terms.
Lifetime Support & Audit defense included in every closed Deferred Sales Trust
Investments managed by Wealth Adviors with access to investment grade sercurities24/7 access to view funds. Funds only move with Client’s signiture. DACA account protection. A broad variety of investments can be selected to secure the principal and the return specified in the note including Stocks, Bonds, Mutual Funds, ETFs, REITs, Managed Accounts, Annuities and Life Insurance, etc.
Buy or invest yourself or via sydications into Investment Real Estate by partnering with your trust at any time all tax deferred.
Move equity outside taxable estateSave 40% on any amount above $11M single or $22M married couple still inside taxabale estate by usign the DST to remove funds from taxable estate when escrow closes.
What are the fees?
ONE TIME FEEAttorney
- Tax and Legal Structure
- Includes Audit Defense
At Close and Annual RecurringCapital Gains Tax Solutions: Trustee
- Tax Return $750 range
- Out of network investments (such as real estate or funding a real estate development project or business) – double the above 50 basis points annually for total of (100 basis points) for funds removed from trust into an LLC
- one time 1.5% fee for funds directed to an LLC to invest into out of network investment, however, subtract the Financial Advisor Fees for amount directed. This is 10 year option to direct funds to an LLC which can buy and sell real estate in and out of the Trust all tax deferred.
ANNUAL RECURRING FEEFinancial Advisor
- depending on account size and where the funds are invested.
- DACA Account Fee $1,500( if DST account is less than $1M) every 18 months.