Deferred Sales Trust

Todd Jackson Law

Looking for a legal professional adept in Deferred Sales Trust? Consider Todd Jackson Law. Our firm, located in Franklin, TN, serves businesses and individuals throughout Tennessee.

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Eliminate Your Capital Gains Tax!

A Deferred Sales TrustTM is a tax deferral strategy designed to allow an individual to hold securities in their name, while legally avoiding capital gains taxes until the investor’s death. The Deferred Sales TrustTM is often used by high net worth individuals who have extraordinary appreciation in their investments.

How a Deferred Sales TrustTM Works

A Deferred Sales TrustTM is a viable financial strategy often used to defer capital gains taxes. This strategy capitalizes on a tax loophole in the IRS code that allows you, the selling party of an asset, to defer your capital gains taxable event by passing your capital gain to a 3rd party trust, thereby, you forego realizing your capital gain. This trust can then invest your funds on your behalf, yielding even greater capital gains over a 5-10 year period.

Tax Deferral Strategy for your Assets

A Deferred Sales TrustTM is a viable financial strategy often used to defer capital gains taxes. This strategy capitalizes on a tax loophole in the IRS code that allows you, the selling party of an asset, to defer your capital gains taxable event by passing your capital gain to a 3rd party trust, thereby, you forego realizing your capital gain. This trust can then invest your funds on your behalf, yielding even greater capital gains over a 5-10 year period.

  • Collectibles – A collectible asset is a physical asset that appreciates in value over time.
  • Crypto – They are commonly known as cryptocurrencies such as Litecoin, Ripple, Bitcoin, and Ethereum.
  • Real Estate – Real Estate Assets means any investment by the Company or the Operating Partnership in unimproved and improved Real Property.
  • Business – A business asset is an item of value owned by a company.
  • Stocks – Stocks belong to financial assets. Financial assets are paper assets that can be easily converted to cash.
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Financial Benefits of Using A Deferred Sales TrustTM

Avoid Capital Gains Taxes

First thing’s first: capital gains are the profit you make when you sell off capital assets for more than their original purchase price. Capital assets include anything from stocks to houses and everything in between. To figure out capital gains, you have to sell an asset for more than what you paid for it originally (the capital cost base, or “CCB”). If you end up selling that capital asset later on, then capital gains tax may apply as a percentage of the amount the capital assets go for after taxes and fees. Of course, capital gains tax is only applied when you sell off capital assets for more than what they’re worth. All capital assets that you buy and hold (no matter how long) will increase in value as time goes by. That means if you never sell them, capital gains tax doesn’t have to be a concern – even though the capital asset increased in value, you didn’t sell it for more than what you paid.

Estate Liquidity

Estate Liquidity is the amount of cash one would receive for selling assets in order to cover living expenses. Estate liquidity is important during the estate planning process because it considers whether or not there will be enough money remaining after death to cover debts, taxes and other costs. Estate liquidity can also help determine if a decedent’s remaining assets are sufficient to benefit their heirs. Estate liquidity is usually discussed in connection with estate planning and taxation of estates, as these two things play a role in how one’s estate will be distributed after death. Estate liquidity can be measured several ways depending on the circumstances of each individual estate and varies from person to person.

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3326 Aspen Grove Dr #400, Franklin, TN 37067
Hours: 8:30 am – 5 pm
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