Bifurcated Exchanges into a 1031 Exchange and a Deferred Sales Trust

Bifurcated Exchanges into a 1031 Exchange and a Deferred Sales Trust with the possible use of a Delaware Statutory Trust for the 1031 Exchange Upside Replacement Property The usual 1031 jargon is “up in value, up in loans”.   In a bifurcated 1031 exchange you are doing 2 transactions-  (1) a 1031 exchange and (2) a …

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Can the Deferred Sales Trust Help Partners Wind Up Their Partnership in Real Estate Ownership?

It is not uncommon for friends or family members to pool their resources together to invest in Real Estate.  Often times they employ a strategy where they systematically use a vehicle known as a 1031 exchange to reinvest in more valuable properties using tax deferral to allow their assets to grow more quickly. As with …

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Using the Deferred Sales Trust™ to Rescue a Failed 1031 Exchange

1031 Exchanges and Deferred Sales Trust™ are both based on the structuring of sales transactions to avoid actual or constructive receipt of the immediate sales proceeds by the seller. Used as a backup strategy, the Deferred Sales Trust™ preserves tax deferral when the seller cannot successfully complete a 1031 Exchange or does not wish to …

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The Deferred Sales Trust (Part 1)

A Legal, Tax-Based Strategy for Deferring the Payment of Capital Gains Taxes By Greg Reese, Certified Trustee for the Deferred Sales Trust Today we begin our series of AmeriEstate articles covering the Deferred Sales Trust (DST) as a legal, tax-based strategy for deferring the payment of capital gains taxes. Greg Reese, AmeriEstate Legal Plan, Inc., President and CEO and Principal …

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How Can the Deferred Sales Trust be Used to Fund Alternative Investments?

Let’s take real estate, for example.  Frequently a DST is established as a bail-out or a Plan ‘B’ for a seller who is pursuing a 1031 exchange.  Industry statistics show that 20% to 30% of 1031 exchanges fail because a seller is unable to identify their upside property within 45 days and successfully close on the identified …

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The Use of Alternative Investments within the Deferred Sales Trust

The Deferred Sales Trust is designed so that the proceeds of the sale of a business, real property or highly appreciated collectables can achieve tax deferred status.  The original seller of the appreciated asset first sells the asset to the Trustee of the Trust, who then “re-sells” the property to the intended buyer.  The transaction is effectively …

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