Back in 1989, a movie entitled “Bill & Ted’s Excellent Adventure” became the hit comedy of the year. Unfortunately, its two main characters, while funny, gave no indication of being able to think. Instead, they relied on chance to solve their problems.
Thankfully, most of us aren’t like Bill and Ted. We think. We plan ahead. We invest wisely. But that doesn’t mean that we’re boring people. We still have fun and go on excellent adventures. We just don’t leave it up to chance to solve our problems.
Take, for example, the excellent DST adventures of two old friends named Dave and Pete.
The Problems
Pete owned an apartment building that he’d bought years ago, but was now tired of managing. In addition, he wanted retirement income so he could travel with his family.
Dave owned his own business that he’d started from scratch and built into a successful concern that had supported himself and his family for years. He now wanted to sell it so he, too, could retire and spend more time with his family.
Each man knew that he would face a significant capital gains tax liability if he simply sold to the first buyer who came along. Neither found this a reasonable solution. What to do?
Pete’s Adventure
Pete began his excellent adventure first. He called Reef Point, a company about which he’d heard a lot of good things, and talked to Greg Reese, its Principal and Managing Member. Greg explained to Pete how a Deferred Sales Trust (DST) would not only allow him to sell his highly appreciated apartment building without incurring any immediate capital gains tax liability, but also would give him the retirement income he so ardently desired. “Wow!” Pete exclaimed. “Now there’s an excellent adventure I want to begin right away!”
“No problem,” said Greg. “I’ll arrange for you to meet with our Reef Point DST estate planning team. This circle of professionals will surround you with the expertise you need to accomplish your goals.”
At the meeting, Pete learned that Greg Reese himself would be his Independent Certified DST Trustee, one of only 13 individuals nationwide trained and qualified to serve in this highly skilled capacity.
Pete eagerly agreed to sell his apartment building to his DST in exchange for a secured installment sale contract. Soon, he found himself receiving more monthly income than he ever had while owning and managing the apartment building.
Dave’s Adventure
Being a good friend, Pete hurried to tell Dave about all the benefits attached to using the DST tax minimization strategy. Dave listened intently, his eyes lighting up. The first question he asked Pete was: “Do you think a DST might be right for me, too, when I sell my business?”
“I don’t see why not,” Pete grinned. “Why don’t you call Greg at Reef Point and see what he has to say? I’ll bet he’ll tell you that a DST works just as well when selling a business as when selling investment real estate.” So Dave did and began his own excellent DST adventure.
How About You?
Ready to go on your excellent DST adventure? If so, contact Reef Point today.