Offer the DST as a Value Add to your Clients
Use the DST to bring value to your clients, look like a super-hero, and save your clients a TON of taxes!
Most professionals want to be consultative to their clients, bring value, help them build their wealth and along with that become even more of a trusted adviser. The DST is a tool in your toolbox to help you become even more of a superhero to your clients.
The DST program is a great fit for clients who:
- Are looking to sell something (real estate, a business, a collection (cars, artwork), stocks, etc.) and are concerned about a hefty tax bill!
- Will have to pay a tax bill of at least $75,000 if they sell
- Are looking at a taxable gain (increasing overall income) by at least $250,000
- Are in real estate now, want to stay in real estate, but a §1031 exchange is too restrictive
- May be looking at a failing §1031 exchange
We offer an affiliate program for other professionals who want to offer the DST program to their clients. This program allows you to control the conversation with your clients, be involved in all the stages of the process, and bring a valuable tool & massive tax savings to your clientele. The DST can be an amazing strategy to aid your clients keep more cash and ensure you are top of mind for them in all future decisions and as an important consultative partner.
If you are interested in reviewing the DST as an option, please complete our mini-form below so we can start the conversation!
FAQs & Most Common Questions (as a Partner)
I want to learn more before I make any moves - what do I do?
There are lots of ways to learn more!
- We offer webinars frequently on the topic (you can register for one here: dst4me.com)
- You can schedule an intro call to learn more and do a mini Q&A session to get the conversation started (book here)
- We have flyers & educational materials for you (and for you to share with clients, prospects, etc if you want!)
- We can connect you with other professionals who are already DST registered partners so that you can ask questions direct to a partner! (Just ask! 🙂
Are there fees to become a registered DST partner?
Depending on how you partner with us, there may be some small fees to become a partner (typically in the range of $50/month).
I am a financial adviser, are there special requirements for me to be a Qualified DST representative?
Yes. Since the DST is a propriety tax strategy there are some requirements to becoming a registered representative of DST. These include detailed knowledge of the strategy, the creation of the investment advisory role for you with the DST structure, and training on how to best present the DST to your clients & other referral partners.
NOTE:
As a financial adviser, can I earn commissions on the DST assets?
What support is available to me as a DST partner?
I want to offer this to my clients - how do I run a Free DST analysis?
It’s very easy! Your next step is to complete an “illustration request” on-line at: Request my Free DST analysis
Or, you can call and request a “free DST illustration” which will illustrate your particular facts and circumstances surrounding your potential sale as it relates to utilizing the DST. Once you have received the illustration summary, you can then review this information with a trust case manager and share this information with your CPA (if not Tax Goddess) or tax attorney for further review.
FAQs & Most Common Questions (for Clients)
How can I know the amount of my payments from the trustee?
The payments are based on what you, the Seller/Taxpayer, arrange and pre-negotiate with the DST Trained and Approved Trustee. Depending on your income goals and other objectives, the amount and length of term of the installment sales note are your choice and subject to your 100% agreement.
What happens if I die?
With proper estate planning (i.e., by creating a Living Trust) scheduled installment note payments otherwise due to you can continue to pay to your legal heirs pursuant to the note term that you have chosen.
Are there any flexibilities or variability in the payment stream, such as increasing the payments over time?
Yes. The DST Trained and Approved Trustee, in his/her absolute discretion, may allow you to refinance your installment sales note in order to extend or shorten the note term or to provide you with payments (or greater payments) of principal (and should you decide to take an “interest only” note initially).
Can I cancel the whole deal after a few years and get my money?
If the DST Trained and Approved Trustee deems appropriate, He/She may elect to terminate the installment sales contract. However, you would immediately owe all the taxes, including all unpaid capital gains due from the original sale of the property/capital asset.
What happens if capital gain tax rates are changed after I set up the DST?
Politicians, from time to time, discuss changing capital gain rates. If that happens you would pay the new rate on the capital gains portion of your installment note payment. However, there is usually adequate notice to make a sound financial decision prior to any such change in taxation or tax rates.
Can I use my installment sales note to get back into real estate?
Yes, please contact the team or a duly qualified DST tax professional to discuss this option. We recommend that you work with Professional Advisers who are experienced in trust law, trust asset management and tax law as there are many situations that could “go wrong” if this is not implemented properly.
When the trust sells the property may I keep some of the cash from the sale?
Yes, in that case you would pay taxes only on the capital gain portion of the money which you kept for yourself outside the trust.
How can I have my tax adviser or attorney analyze the Deferred Sales Trust™ strategy?
For detailed technical information, have your CPA/attorney contact us for a full legal and tax cite package. The names Deferred Sale Trust™ and DST are common law trademarked names and are not found in the code. All of the legal and tax authority used in the DST are in the tax code, treasury regulations, cases, or rulings based upon the foundations found within the tax law.
How can I know the amount of my payments from the trustee?
The payments are based on what you, the Seller/Taxpayer, arrange and pre-negotiate with the DST Trained and Approved Trustee. Depending on your income goals and other objectives, the amount and length of term of the installment sales note are your choice and subject to your 100% agreement.
What are the fees involved with this type of strategy?
The fees involved depend on your particular situation (is this real estate? a business sale? crypto-currency sale?), but you can expect a minimum fee of 1.5% of DST assets as a one-time setup fee & .5% of DST assets/year.
I’m interested in finding out if this works for me & my client. What should I do next?
It’s very easy! Your next step is to complete an “illustration request” on-line at: Request my Free DST analysis
Or, you can call and request a “free DST illustration” which will illustrate your particular facts and circumstances surrounding your potential sale as it relates to utilizing the DST. Once you have received the illustration summary, you can then review this information with a trust case manager and share this information with your CPA (if not Tax Goddess) or tax attorney for further review.