Deferred Sales Trust ?

[Lee B]

A local  financial adviser has been actively promoting "Deferred Sales Trusts"

as a way to minimize taxes from the sale of capital assets.

Since I have never heard of these trusts, are they legitimate or ?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Lynn EA USTCP in Louisiana]

I did a google search and lots of links came up. I did not read Any of them in detail but the property is sold to a trust which in turns issues the seller an installment sale contract. IMO seller beware. 

[Lee B]

After also doing a google search, almost all of the information out there is from the websites of firms promoting and selling these trusts.

These promoters also charge an annual fee as a % of the trust assets. They seem to heavily marketed to attorneys and financial advisers.

 

[JohnH]

Client to FA: "I thought you said the purpose of these ' Deferred Sales Trusts' was to build the college fund for the kids."

FA: "Yes, that's exactly the purpose.  The college fund for my kids is doing great! "

[Catherine]

@JohnH - got it in one.