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have restrictive limits on the deferral period, and you can withdraw funds as needed and only pay taxes on the amount withdrawn.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.

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

Deferred Sales Trust™

Step 2

Simultaneous cash sale to 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