As a financial or legal professional, you’re always looking for ways to better help your clients. But not just any “way” will do. It must truly be of value to your clients. It must be legal, proven and tested. It must allow you to ethically practice within your rules of professional responsibility. It must be something you feel very good about yourself so you can responsibly advise your clients about it and recommend it to them.
Meet the Deferred Sales Trust.
This unique proprietary strategy allows your clients to sell their highly appreciated assets without facing the long-term capital gains recognition and payment such sales usually entail. Only the Estate Planning Team and its affiliates can offer the Deferred Sales Trust (DST). You will be glad to know that Reef Point has created and developed an in-depth Partner Center to help you determine if DST partnership fits your professional needs.
Who Should Consider Becoming a DST Partner?
If you are one of the following, you should consider the benefits that the DST offers both you and your clients:
- Tax and/or estate planning attorney
- Certified Public Accountant
- Investment advisor
- Financial advisor
- Business broker
- Mergers and acquisitions professional
- Real estate professional
How Does Becoming a DST Partner Benefit You?
Being able to offer your clients the benefits of the DST gives you a competitive advantage over your competition. Surprisingly, few professionals know about this strategy or utilize it for their clients. Offering this advantageous strategy adds value to your practice in terms of your current client base. It also gives you a way to expand your services and market them to a wider variety of prospects. Finally, becoming a DST Partner allows you to generate a new revenue stream for yourself or your organization.
How Does the DST Benefit Your Clients?
Admittedly, the DST is not for every client. It is most beneficial for your high-asset clients who stand to make a minimum $250,000 profit on the sale of their highly appreciated assets, whether those assets are a business, a piece of commercial real estate, an art or other collection, raw land, a vacation home or even their personal residence. These clients need not be individuals. The DST can also be utilized by any legal entity, such as a partnership, a corporation, an S corporation, an LLC, etc.
In addition to deferring capital gains taxes, the DST also provides your clients the following benefits:
- The ability to diversify their investments from illiquid business or real estate holdings to such things as stocks, bonds, ETFs, annuities, mutual funds, green energy funds and REITs
- The opportunity to obtain a higher, more stable cash flow
- The ability to receive installment payments as and when needed
- The ability to structure principal and interest payments as desired
- None of the downsides of a 1031 exchange
- Rescue from a failed 1031 exchange
- The ability to hold sale proceeds in the DST until the optimal real estate investment presents itself
If you’d like to find out more about how becoming a Reef Point DST Partner can benefit you and your clients, contact us today. We’ll be happy to discuss with you the ways in which you can receive the required education on all facets of the DST and additional marketing assistance such as a seminar tool kit, PowerPoint presentations to show your clients and regular training webinars.