Watch the video below and learn how a properly executed Deferred Sales Trust™ can benefit Business Brokers.

Steps to Creating your Deferred Sales Trust™

Step 1.

Enter the relevant details of the sale of your real property, business, or other highly appreciated asset at My DST Plan or call your EPT advisor who can assist you with the process. This information will be used to evaluate your case. An experienced Tax Attorney, Trustee and Case Manager will review your case to determine if the DST is a good fit for your transaction.

Step 2.

An introductory conference call is set up to discuss how you can benefit from using a DST for your sale, and a tax deferral illustration is created for you. During this call, the Deferred Sales Trust™ structure will be explained to you and any questions that you have will be answered. Follow-up calls can be scheduled, if necessary, and your own tax and legal advisors are welcome to join.

Step 3.

A conditional engagement agreement is provided to you by the tax law firm, for your review. Th ere is no upfront cost or obligation. Once the conditional engagement is signed, the tax law-firm will establish the trust and engage in preliminary planning. You are under no obligation to proceed or pay for any services unless your sale closes, and you decide to fund the trust. You are simply agreeing to pay for the services rendered by the law firm, if you do choose to proceed.

Step 4.

The tax attorney prepares the documentation and implements the Deferred Sales Trust™ at the close of sale, either through escrow or attorney. The pre-tax proceeds from the sale are delivered to the Trust, the funds are invested in a manner that is consistent with your risk tolerance and preferences, and payments are made to you pursuant to the payment schedule.

Contact Details:

Credo Financial Services, Inc.
Estate Planning Team Member
3800 Mansell Road, Suite 150 Alpharetta, GA, 30022
Phone: (678) 802-8800 Email: dlucas@credofinance.com
Website: www.mydstplan.com/credo

Frequently Asked Questions (FAQs)

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 the 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, please contact the Estate Planning Team or a duly qualified DST tax professional to discuss this option. 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 DST strategy?
A: For detailed technical information, have your CPA contact Credo for a full legal and tax cite package. The names Deferred Sales Trust ™ and DST are common law trademarked names and are not found in the code. All 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 very easy. Your next step is to complete an “illustration request” on-line, or you can call and request a “free DST illustration” which will illustrate your particular facts and circumstances surrounding your potential sale as it relates to utilizing the DST. Once you have received the illustration summary, you can then review this information with a trust case manager and share this information with your CPA or tax attorney for further review.

Request Your FREE
Deferred Sales Trust™ Illustration

Or, call (678) 802-8800 to request your DST Illustration by phone.

Dan Lucas
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Dan Lucas

As the President and Founder of Credo, Dan advises clients with a strategic CFO mentality, in all aspects of accounting, finance, tax, operational strategy and best practices. He also directs the Credo team in establishing the strategies for the growth of the firm and continually raising the bar on its standards of exceeding clients’ expectations.
He has accrued broad financial experience working with companies ranging in revenues from $50,000 to $60 billion.Dan has worked with technology services, software, real estate, retail, manufacturing companies, professional services firms, marketing/advertising agencies, dental practices, medical practices, and various other industries, providing each with the specific financial guidance needed to establish sustained business growth and financial health.
Dan Lucas
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