How do we know it's legal?

Created by Client Experience Team, Modified on Wed, 15 May, 2024 at 2:17 PM by Client Experience Team

The legality of the Deferred Sales Trust is well-established and supported by extensive vetting and endorsements from various legal, accounting, and financial professionals across the United States for over 24 years. Here are key points reinforcing its legality:

Foundation in Tax Code: The structure of the Deferred Sales Trust is rooted in IRC Section 453 of the tax code, a provision that has been in place for over 90 years.

IRS Review and Audits: The Deferred Sales Trust has undergone extensive IRS scrutiny, including 15 reviews and two formal audits of the structure and law firm, all of which resulted in successful "no change audits." Additionally, over 13 clients have undergone random IRS audits unrelated to the Deferred Sales Trust, all resulting in "no change audits."

FINRA Review: The Deferred Sales Trust has also been reviewed by FINRA, further validating its compliance and legality.

Track Record and Success: With over 2,000 Deferred Sales Trust deals closed, valued at over $1,300,000,000, and the endorsement of over 150 Financial Advising Firms and 1000+ Financial Advisors, the Deferred Sales Trust has demonstrated its legality and effectiveness in helping high net worth clients defer capital gains taxes legally and responsibly.