Most Americans have realized good appreciation in their home values from 2008 – 2018. With an IRS exclusion of $250,000 per person and $500,000 per couple, they can realize a handsome profit after two or more years of owning and residing in that home.
There is rarely a single person behind any wealth management strategy, and a Deferred Sales Trust is no different.
A DST has two beneficial uses: First, it allows you to structure an asset sale to defer the capital gains tax payments indefinitely. Second, it provides a vehicle for you to invest the full proceeds to best suit your financial and lifestyle objectives.
In Part 1, Charles and Maddie’s story illustrated how life and politics can make a father’s desire to provide for his daughter much harder than it should be. While not ultra-wealthy by any standard, Charles has enough retirement savings that he should be able to structure supplemental income for Maddie for many years should he succumb to heart disease complications or any other premature death.
If your estate is worth $1 million or more, minimizing the cut you will have to give to the IRS upon your death is likely a big component of your planning. In this two-part post, we will discuss the effect that incorporating a charitable trust has on your overall estate plan. This strategy could provide a stable, protected and higher source of income for your survivors than passing your assets to them in your will.
An IRS 1031 exchange is a fantastic tool for an investor to transfer a real estate asset into another without recognizing a taxable capital gain. However, there are limitations of its use and strict rules governing its use: like-kind limitations, time windows and asset type restrictions. If you wish to diversify your real estate asset into other investments or if your asset is not real property to begin with, then you need a 1031 exchange alternative like a Deferred Sales Trust.