Can I Receive Payments from a Deferred Sales Trust when I Retire?

deferred sales trust retirement

Sometimes taxpayers that are selling property want to defer receiving any proceeds until they retire. The idea is that while they’re working and they have a large earned income they don't necessarily need or want the additional income. So you can structure your note with the deferred sales trustee in such a way as to have the payments commence the day you anticipate retiring from your job.

A DST Retirement Example

Let's say you enter a 10 year note with the trustee but you continue to work for another three years. You can set up the note so that no payments are due under the installment note for three years and thereafter the payments would begin.

The idea is that while you're working there's no need for you to have this additional income to come in on your tax return and you'd rather keep that money at bay compounding and growing inside of the trust, rather than coming in unnecessarily on your tax return while you're still employed for three years. Each note with the deferred sales trustee can be customized and designed for your tax purposes and your needs.

  • 1031 Hotline: If you have questions about deferred sales trusts, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.


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