While doing some research into selling some highly appreciated property, I ran across a proprietary investment strategy called a Deferred Sales Trust. As I understand it, it's basically an installment sale except that you sell the property to an independent trust who then sells the property to your buyer and distributes the proceeds to you over x number of years. You only recognize capital gains to the extent that funds are disbursed to you each year, thus enabling you to stay in the 0% and 15% capital gains tax brackets each year instead of the higher surcharge bracket that you'd be in if you had to recognize the entire gain in the year of sale.
Has anyone had personal experience with this type of arrangement? It sounds like a great deal, which makes me a bit skeptical.
Has anyone had personal experience with this type of arrangement? It sounds like a great deal, which makes me a bit skeptical.
Last edited: