FAQs about the Deferred Sales Trust™

Q. How can I know the amount of my payments from the trustee?

A. The payments are based on what you, the Seller/Taxpayer, arrange and pre-negotiate with the DST Trained and Approved Trustee. Depending on your income goals and other objectives, the amount and length of term of the installment sales note are your choice and subject to your 100% agreement.

Q. What happens if I die?

A. With proper estate planning (i.e., by creating a Living Trust) scheduled installment note payments otherwise due to you can continue to pay to your legal heirs pursuant to the note term that you have chosen.

Q. Are there any flexibilities or variability in the payment stream, such as increasing the payments over time?

A. Yes. The DST Trained and Approved Trustee, in his/her absolute discretion, may allow you to refinance your installment sales note in order to extend or shorten the note term or to provide you with payments (or greater payments) of principal (and should you decide to take an “interest only” note initially).

Q. Can I cancel the whole deal after a few years and get my money?

A. If the DST Trained and Approved Trustee deems appropriate, He/She may elect to terminate the installment sales contract. However, you would immediately owe all the taxes, including all unpaid capital gains due from the original sale of the property/capital asset.

Q. What happens if capital gain tax rates are changed after I set up the DST?

A. Politicians, from time to time, discuss changing capital gain rates. If that happens you would pay the new rate on the capital gains portion of your installment note payment. However, there is usually adequate notice to make a sound financial decision prior to any such change in taxation or tax rates.

Q. Can I use my installment sales note to get back into real estate?

A. Yes, we can discuss this option with you. We recommend that you work with Estate Planning Team’s Professional Advisors who are experienced in trust law, trust asset management and tax law.

Q. When the trust sells the property may I keep some of the cash from the sale?

A. Yes, in that case you would pay taxes only on the capital gain portion of the money which you kept for yourself outside the trust.

Q. How can I have my tax advisor or attorney analyze the Deferred Sales Trust™ strategy?

A. For detailed technical information, we can provide your CPA with a full legal and tax cite package. The names Deferred Sale Trust™ and DST are common law trademarked names and are not found in the code. All of the legal and tax authority used in the DST are in the tax code, treasury regulations, cases, or rulings based upon the foundations found within the tax law.

Q. I’m interested in finding out if this works for me. What should I do next?

A. It’s easy! Pick up the phone and call me at 407-712-6780 or 888-633-3237 to discuss the specific circumstances of your potential sale and how The Deferred Sales Trust™ may help you achieve your financial goals and objectives.

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