Learn how business brokers and our greater affiliates can effectively present the Deferred Sales Trust to their clients.
If you hold substantially appreciated assets, selling those assets can result in a hefty tax bill. Turning over a sizable proportion of the profits from the sale significantly reduces the benefits you gain from making a sound investment decision. However, you don’t necessarily need to take such a hit, at least not upfront.
You invest significant resources into growing your assets, understanding that risk is always involved. However, no matter your risk tolerance level, developing wealth preservation strategies is essential in maintaining financial health now and into the future.
Liquidity is a key concept in the investment world. As you acquire or sell assets, a critical consideration is how the asset, or its sale, will impact your short- and long-term financial health. Does it expose you to increased risk or protect your financial security? Does the asset generate a regular income, or can you convert it to cash quickly in an emergency?
If you are considering selling an asset, you might receive advice to use a deferred sales trust to defer capital gains taxes. The information about DST is often confusing. While it’s an excellent solution for some, it isn’t always the answer.