The Deferred Sales Trust is a tax strategy that uses the proceeds from the sale of virtually any asset to establish a trust held by a certified, third-party Deferred Sales Trustee. Read about two scenarios with varying degrees of post-divorce capital gain realization where the Deferred Sales Trust tax strategy would have been useful.
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.
Sellers of highly appreciated assets including owners of real property and businesses are keenly aware of the tax ramifications of selling their assets. People will choose to sell their businesses or property for many reasons, including health reasons, lifestyle choices, a desire to be free of the time and other commitments required to manage such assets. Many owners are reluctant to sell their appreciated assets because of the tax burdens they may face, even when doing so is at odds with the goals they desire and could achieve by selling.