Deferred Sales Trusts

Strategic Legal Counsel for Deferred Sales Trusts in Scottsdale

Serving Clients Throughout Arizona and New Jersey

What Is a Deferred Sales Trust?

A Deferred Sales Trust (DST) is a powerful strategy for individuals and businesses looking to defer capital gains taxes while efficiently managing diverse assets. By converting the proceeds from an appreciated asset's sale into customized payments, DSTs provide financial flexibility, long-term stability, and wealth preservation.

However, structuring and maintaining a DST requires precise legal guidance to comply with tax laws and maximize its benefits. Ambrosio & Tomczak, Attorneys at Law provides advice and personalized support that can help you unlock the full potential of a DST.

Reach out to our team online or call us at (602) 207-8672 to explore how a Deferred Sales Trust can help you defer taxes, protect your assets, and secure your financial future. We accept cases in Scottsdale, Phoenix, and throughout Maricopa County.

Benefits of a Deferred Sales Trust

Defers Capital Gains Tax

One of the primary advantages of a Deferred Sales Trust is its ability to ease the burden of capital gains taxes by deferring them over time. When an appreciated asset is sold, it is first transferred to the trustee of the DST, who handles the sale on behalf of the seller. Rather than facing a large, immediate tax bill, the seller receives payments from the trust in structured increments. Taxes are only due on these incremental payments, allowing for more manageable tax obligations.

Works with Multiple Types of Assets

Unlike tax-deferral strategies such as the 1031 exchange, which is limited to real estate transactions and involves an exchange of like-kind properties, a Deferred Sales Trust offers remarkable flexibility. DSTs allow you to defer capital gains taxes on a wide variety of asset types, including real estate, businesses, stocks, and other high-value assets. This makes them an excellent solution for individuals and organizations managing diverse portfolios or planning non-like-kind asset sales.

Creates a Steady Income Stream

DSTs are designed to transform the proceeds from the sale of an asset into installment payments, pursuant to IRS Code Section 453, creating a reliable income stream for the seller. These payments can be structured to align with your financial goals, whether you need consistent cash flow for retirement, reinvestment purposes, or other future needs. Beyond benefiting the seller, the structured payout can provide financial support for heirs, helping secure a legacy for future generations.

Protects Assets

A Deferred Sales Trust provides a valuable layer of asset protection by legally separating your assets from your personal ownership. When an asset is transferred into the trust, it becomes the property of the trust rather than the individual, shielding it from potential creditors or lawsuits targeting your personal estate.

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We focus on creating strategies tailored to your specific goals, offering dedicated service that adapts to your unique needs.
Former Prosecutor Experience

Greg Tomczak brings a prosecutor’s insight and tenacity to every case, using his knowledge of government tactics to your advantage.
Preparing Every Case for Trial

We approach every case as though it’s headed for trial, ensuring a strong position for negotiation or courtroom proceedings.
Complex & High Profile Cases

Our team handles intricate legal matters with precision and determination, whether managing disputes, investigations, or litigation.

Considering a DST? Here’s How Ambrosio & Tomczak, Attorneys at Law Can Help You:

Legal Structuring

Our attorneys have extensive experience structuring Deferred Sales Trusts. We draft and review the essential trust documents, ensuring their legal soundness and compliance with relevant laws. This includes addressing unique considerations for the type of asset sold and tailoring the trust to align with your financial goals. Proper structuring is critical for maximizing the effectiveness of a DST, and our firm ensures that each trust is designed to protect your assets while deferring tax liabilities.

Tax Compliance

Deferred Sales Trusts operate under IRS Section 453, which governs installment sales. However, the absence of explicit IRS guidelines on DSTs makes proper compliance both critical and complex. This ambiguity can lead to risks, including audit challenges or loss of tax-deferral benefits. Our firm provides the legal guidance needed to structure your DST in alignment with Section 453 principles and all applicable tax laws.

Ongoing Support Through Tax Law Changes

Tax laws are constantly evolving, and your DST must remain compliant through these changes. Similarly, new compliance requirements might demand additional reporting or restructuring to remain within legal boundaries. Our attorneys monitor legislative developments, advise on necessary modifications, and help you maintain the benefits of the trust while staying within the law.

Maximize Your Tax Savings with Knowledgeable DST Attorneys

A successful Deferred Sales Trust starts with a legal team you can trust. At Ambrosio & Tomczak, Attorneys at Law, we combine skills in managing high net worth estates with experience across a wide range of industries, including corporate services, real estate, health care, government contracting, and manufacturing. Our clients range from individuals and small businesses to large multinational corporations, demonstrating our ability to handle complex financial needs.

Ready to learn more about deferring capital gains and safeguarding your wealth? Call us at (602) 207-8672 or contact us online.

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When Winning Matters, Ambrosio & Tomczak Delivers

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