High capital gains taxes can quietly erode the wealth you’ve worked years to build, which is why a secure, flexible sales strategy matters. A Deferred Sales Trust offers a way to legally defer capital gains while maintaining control over how and when you receive proceeds from a high-value asset sale. Instead of taking a lump sum and triggering a large immediate tax bill, sale proceeds are placed into a trust and exchanged for an installment note that pays out over time. This structure spreads tax liability across future years, allowing income to be drawn strategically and aligned with your broader financial goals. A DST also creates a buffer against market volatility and shifting tax laws by keeping assets invested and adaptable, rather than exposed to sudden changes. Unlike a 1031 exchange, which forces strict timelines and limits reinvestment options to like-kind property, a DST removes those constraints and opens the door to diversified investments, cash positioning, or alternative assets. This flexibility is especially valuable for business owners or investors exiting a major asset who want steady income without rushed decisions. Ultimately, a Deferred Sales Trust provides clarity, control, and freedom, helping you preserve wealth, manage taxes thoughtfully, and move forward on your own terms.
source: https://capitalgainstaxsolutions.com/why-investors-choose-deferred-sales-trusts/
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