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Deferred Sales Trust Vs. Delaware Statutory Trust DST Vs. Delaware Statutory Trust
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Delaware Statutory Trust

Deferred Sales Trust Vs. Delaware Statutory Trust

The Deferred Sales Trust and the Delaware statutory trust are two very different investment strategies. Both methods help the seller defer paying capital gains taxes, but they do so in very distinct ways. Despite their differences, they are often confused because they share the same abbreviation: DST. Below is more information about these two methods. At Freedom Bridge Capital, we offer the Deferred Sales Trust due to its flexibility and capital gains tax deferral.

DEFERRED SALES TRUST
INCLUDES BUSINESSES, MEDICAL PRACTICES, COMMERCIAL REAL ESTATE, AND PROPERTY SALES
CAN DEFER CAPITAL GAINS TAX
CAN DIVERSIFY INVESTMENTS SECURING YOUR PROMISSORY NOTE (STOCKS, BONDS, MUTUAL FUNDS, PROPERTY, AND MORE)
DELAWARE STATUTORY TRUST
LIMITED TO COMMERCIAL REAL ESTATE AND PROPERTY SALES
CAN DEFER CAPITAL GAINS TAX BY INVESTING SALE PROCEEDS INTO THE TRUST
LESS FLEXIBILITY WITH INVESTMENTS (LIMITED TO REAL ESTATE)

Deferred Sales Trust

WHAT IS A DEFERRED SALES TRUST?

The Deferred Sales Trust offers owners the ability to defer capital gains taxes on their business, practice, or property sale. Sellers sell their assets to the Deferred Sales Trust, who then sells the asset to the buyer.

The Deferred Sales Trust is an ideal option for company and real estate owners who are ready to transition to retirement. The Freedom Bridge Capital Deferred Sales Trust also offers access to leading financial and legal professionals to assist you in setting up a wealth succession plan for you and your family.

MORE INFORMATION

Delaware Statutory Trust

WHAT IS A DELAWARE STATUTORY TRUST?

The Delaware statutory trust is a passive real estate exit strategy. Despite the name, this method is not limited to residents of Delaware. Property owners across the United States have the option to sell their real estate to a Delaware statutory trust. In order to do so, the seller completes a 1031 exchange and then puts the proceeds of their sale into the trust. By depositing their profits in the trust, the seller can defer paying capital gains tax on the sale. The seller then receives structured payments on the interest of their investment.

The Delaware statutory trust may be ideal for property owners who are tired of dealing with tenants, repairs, and the headaches associated with rental properties. This option allows you to have a passive stake in the investment without the personal management involved. The Delaware statutory trust may allow up to 100 investors to participate, with the master tenant being the real estate sponsor firm who is in charge of the trust.

WHAT ARE THE DISADVANTAGES OF THE DELAWARE STATUTORY TRUST?

Although the Delaware statutory trust is a legal and established form of real estate investment, it is not without its risks. Loan defaults and high vacancy are always a possibility with this type of investment.

WHY IS THE DEFERRED SALES TRUST A SUPERIOR INVESTING STRATEGY?

The Deferred Sales Trust offers much more flexibility for real estate owners than the Delaware statutory trust. By selling your asset to the Deferred Sales Trust, you can diversify the investments securing your promissory note, as such investments can be stocks, bonds, annuities, mutual funds, property, collectibles, and more. Business owners, practice owners, and property owners can sell their assets to the Deferred Sales Trust – these owners would not be able to sell their assets to a Delaware statutory trust.

SCHEDULE YOUR FREE VIDEO CONSULTATION

A ONE-ON-ONE WITH OUR DST TRUSTEE

Schedule a free video consultation with our deferred sales trust specialists today! Our estate planning team offers complimentary DST analyses to determine your estimated tax savings using the deferred sale trust investment strategy. We’re here to answer any questions you may have about the deferred sales trust and help you get started on the sale of your company, practice, or property.

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HOW DO I LEARN MORE ABOUT YOUR DEFERRED SALES TRUST?

The Freedom Bridge Capital team would be happy to speak with you to see if a Deferred Sales Trust is right for you. Please give us a call at 800-897-0212 or request your free DST analysis today by filling out the form below.