Michael McIntire from Estate Planning Team demonstrates techniques for discovering new Deferred Sales Trust opportunities and how to present the DST capital gains tax strategy to a new prospect.
Deferred Sales Trust
4 Risks to Consider Before Creating a Deferred Sales Trust™
A Deferred Sales Trust can be a fantastic tool for minimizing your tax obligations and investing the savings to build your wealth. Yet, any method for making money carries risk with it, and a DST is no different.
3 Scenarios That Would Benefit From a DST
DSTs, or Deferred Sales Trusts, are taking the investment world by storm. This flexible investment opportunity allows you to sell assets and avoid paying taxes on capital gains. This can potentially result in millions of dollars saved, depending on the size of the gains. Even smaller investments can see big returns: capital gains tax can take over 20% of your gains away, depending on the situation.
How a DST Funds Your Retirement and Benefits Your Estate Plan
Although modern trust law traces back to feudal England in the 1100s, citizens of the Roman Republic secretly used an oral agreement called “fideicommissum” (something committed to one’s trust) to work around civil succession laws. This way, they could leave wealth or property to those considered as lower-class, including foreigners, slaves, couples without children or unmarried individuals — an act that was punishable by death.
How are Capital Gains Taxes Calculated?
Capital gains taxes stand to take a big chunk out of your profits when you sell an asset. However, like most taxes, there are many things that go into the exact calculations of the capital gains tax you will pay. Remember that capital gains tax applies to a variety of different assets, including stocks, property and businesses. A unique factor of capital gains tax is that the amount of tax depends heavily on how long you had the asset. Depending on the state you live in, the state government may also levy capital gains taxes in addition to the federal government.