Pros and Cons of a Deferred Sales Trust: Let’s Explain

Are you considering investing in a deferred sales trust but are unsure of the pros and cons? Many investors are familiar with traditional investments like stocks or bonds but may not know the potential benefits of trusts. While it’s true that this type of investment does have some risks attached, understanding these concepts can give you greater insight into assessing whether pursuing a deferred sales trust is right for your financial future. This blog post will discuss the pros and cons of a deferred sales trust. Read on to learn more!

What Is Deferred Sales Trust?
Before we go into the pros and cons of a deferred sales trust, we should mention what it is. A Deferred Sales Trust (DST) is a legal arrangement used in real estate transactions to defer capital gains taxes on the sale of the property. The DST is created when the property owner sells their property to a trust, which then sells the property to a buyer. The sale proceeds are held in the trust, and the trust makes payments to the seller over a period of time.

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