Deferred Sales Trust™

THE DEFERRED SALES TRUST™

Offers an alternative to a 1031-exchange for sellers wanting to cash out of their business or real estate portfolio but continue to defer the capital gains and any state income tax that would be due on the sale.

What is a Deferred Sales Trust™?

Think of a Deferred Sales Trust™ (DST) as an IRA for real estate and business sales with additional flexibility.

With an IRA, you defer paying taxes on earned income for as long as the income is invested rather than received. This system allows the earnings from the investments to pay the taxes over time rather than paying taxes in the year of the earnings.

Similar to an IRA, with a Deferred Sales Trust™ you also defer paying taxes on the profit of a real estate or business sale as long as the profits are invested by the DST rather than the seller taking constructive receipt of the funds at the time of the sale. This system allows the earnings from the investments to pay the taxes over time rather than in the year of the sale.

The DST structure does not have restrictive limits on the deferral period, and you can withdraw funds as needed and only pay taxes on the amount withdrawn. If set up properly, funds may be reinvested back into real estate without the time constraints of a 1031 exchange.

Investment Fund Management

When it comes to investments the income-earner should be selective when choosing an IRA investment fund manager.

This is the same for a Deferred Sales Trust™. To enhance their position as creditor to a DST, potential clients will have access to fund managers, accessible through DST Wealth Management, LLC. This includes David Young, Founder & CEO of Anfield Capital and prior Executive Vice President of PIMCO’s London office.

DST Wealth Management, LLC has Management Relationship Agreements in place to provide clients access to Global Investment Fund Managers like Swan Global Investments, SEI, and CLS, managers of pension funds for recognized global brand name institutions, and prominent university endowment funds.

Information is available for your review on these websites:

Sample Case

This example shows the taxes due in California on the sale of an income property, residence, or business sale.

John Smith Sample Case

Business or Real Estate For Sale

$5,000,000 Sale
$1,000,000 Dollar Cost Basis
$4,000,000 Gain will be taxed
- Federal Tax: 20%
- State Tax – CA: 13.3%
- Medicare Tax: 3.8%

Taxes Due = $1,484,000!

(37.1% of your gain)

Why Pay The Captial Gains When You Can Defer Them?

Deferred Sales Trust™ 2-Step Process:

Seller's Asset

Step 1

Installment sale to the DST

Step 2

Simultaneous cash sale to Buyer

Buyer

*Sales Proceeds are invested by DST into seller/creditor approved investments

*Seller: receives payments from investments as agreed in installment sales contract

Why Hasn’t My CPA Heard About the DST?

Over twenty years ago tax attorney Todd Campbell put together a capital gains tax deferral program governed under IRS tax code-453-installment sales rule. Campbell later trademarked the program as a Deferred Sales Trust™ under which all legal documentation and explanations of the process are divulged and explained.

Due to the intellectual properties, and for the protection of trade secrets, a non-disclosure agreement, (NDA) has been required from any outside law or accounting firm seeking access to information about the Deferred Sales Trust™ for their clients.

For this reason, the Deferred Sales Trust™ has had limited exposure to outside sources.

Fees Associated With Deferred Sales Trust™

Note: There are no up-front fees or obligations required during the review process. Clients can cancel anytime prior to closing with no further obligation.

1. Trustee Management:
Fee is based on a sliding scale.
2022 rate chart is available upon request.

2. Investment Fund Managers: Fee is based on a sliding scale.
2022 rate chart is available upon request.

3. Legal Services: One-time setup fee.
Based on a sliding scale, with maximum fee of 1.5% of trust amount.

Control of Funds

At the close of escrow funds are transferred by escrow into the custody of a (DACA) account or a secure financial institution.
A deposit account control agreement (DACA) enables the secured party to obtain control over the deposit account, and so enables its security interest in the deposit account to be perfected.
It is an example of a collateral document entered into by a debtor to secure obligations under a loan agreement.

Investment Disclosure:

To ensure compliance with requirements imposed by the IRS, we inform you that any information contained in this publication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party, any transaction or matter addressed herein. This information is educational in nature and intended as an introduction to Alternative Tax Deferral Strategies. All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is not a guarantee of future results and there can be no assurance, and investors should not assume, that future performances will be comparable to past performance. All investment strategies have the potential for profit or loss.

DST Wealth Management LLC.

This information was provided by Jim Worley.

Jim is a Tax Deferral Strategist and a Registered Solicitor for DS T Wealth Management LLC, CRD # 7216678

For additional information on the Deferred Sales Trust™ contact Jim at:

858-344-6414 or [email protected]

For investment strategies and fund management contact Ed Woolery, Principal of DST Wealth Management, LLC. at:

858-449-3545 or [email protected]

Questions? Contact Me

"Jim is an amazing resource for providing an alternative option to a traditional 1031 Exchange. Its called a Deferred Sales Trust and it allows an investor an option to time the market cycles and not be tied to the traditional time constraints of the 1031 Exchange. This also works for owner occupied properties where a 1031 Exchange would not."

"Real Estate has been my career for the last 30 plus years. It has been both rewarding to me as well as my clients. You have brought attention to an important discovery of the IRS Code 453 by which real estate investments do not end up in a "cul-de-sac" for their diligence. We did not look beyond the IRS Code 1031 but thanks to your research and studies it allows my clients to prolong their assets to match their lifestyle."

"Jim cares about his clients, always returning calls promptly, and is an expert in his field. When owners of equity rich real estate are faced with the decision of selling appreciated real estate, downsizing or moving into a more manageable home and at the same time have the ability to defer taxable capital gains, Jim can explain the many options including the benefits of a Deferred Sales Trust (DST) in a digestible manner, quickly analyze whether it is a good solution for his clients and provide a game plan for execution."

"I have had the pleasure of meeting Jim Worley on several occasions. Jim is often invited to Dallas to share his knowledge of alternative tax deferral programs with local Real Estate professionals. I find he has a unique way of putting complex issues into easy to understand language better than anyone I know. I was most impressed with his desire to broaden his knowledge of new alternative programs that can be a tax savings to clients when selling highly appreciated properties or businesses. My recent work with Jim in “Qualified Opportunity Zone” programs is an example of his desire to increase and share his knowledge of these programs for the benefit of others."

"We happily recommend Jim Worley to our La Jolla Friends and neighbours. We found our dream retirement home in Idaho and didn’t know how we could buy it without selling our La Jolla home first. Our long-time friend, Jim Worley, immediately reached out to his vast network of consultants and arranged for interim financing, all within less than two (2) weeks, which allowed us to purchase that new home. Then he introduced us to a to a top agent who took control of the sale of our La Jolla home. This agent quickly arranged for minimalist styling, professional photography, and created our very own property website with an interactive 3-D tour! It was Amazing! Jim and the agent’s expertise in pricing advice and negotiation skills were spot on. The results speak for themselves. The house sold in seven (7) days. The agent’s personal attention, professionalism, and communication of what buyers expect in our price range were keys in getting our home sold so quickly. Jim and the agent’s commitment to quality and timeliness in action really paid off. With the expert marketing of our La Jolla home and the financial guidance we received from Jim Worley throughout the entire process, we would whole-heartedly recommend this full-service team to our friends, neighbors, family and colleagues. Thank you Jim, it was a great pleasure working with you."

"I just want to personally thank you for being such a professional and guiding light in my real estate purchase. I literally could not have done it without your patience and complete professionalism to navigate through my unique situation as I’m sure everyone else has as well. It’s a real treat as a Tennis Director of the Four Seasons Biltmore of Santa Barbara for the last 25 years to meet a fellow pro at what they do. You are forever a part of our family now and if you ever want to share my note to you, feel free to. I would be proud if I can help someone else find you as I know it would be their lucky day too, as it was for me the day you started to represent me. Cheers’ mate and again, thank you for everything."

About Jim Worley

Jim is a Tax Deferral Strategist and a Real Estate Referral Specialist.

JBW Enterprise, Consultation Services for:

Real Estate Development, Sales, Finance & Tax Deferral.

Texas Broker #192879, CA. #01066266 CRD #7216679

Website By Becca W.