Installment Sale Trusts: When Liquidity Meets Long-Term Leverage

Selling a concentrated asset is great.  Paying a giant tax bill all at once is less great. A well-structured Installment Sale Trust (IST), under IRC §453, lets you sell today, defer the tax hit, and reinvest the full proceeds like nothing ever happened. The result is liquidity now, taxes later, and potentially decades of compounding on pre-tax capital. It’s a smart move for families navigating exits, estate planning, or just wanting to keep more dry powder in play.  Execution and trustee selection are critical so plan properly.  Feel free to contact us to discuss case design.

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