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Asset Management Trust

A better, more simple way to protect assets and address Capital Gains tax.

Some features and benefits of the AMT:

  • No tax on capital gains.
  • Unparalleled asset protection.
  • Internal Revenue Code compliant.
  • Available in all 50 states.
  • Tax and legal experts on your team to consult with.
  • Can be passed on to the next generation.

Asset Management Trust and 1031 Exchange, Side by Side

The process at a glance

Asset Management Trust

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A trust agreement sets out how assets are held and managed, who benefits and how trusteeship continues.

  1. Review your goals and the proposed structure

    Discuss which assets should be conveyed into the trust, who are the beneficiaries, and be in the role of trustee, and what are your expectations.

  2. Apply and establish the trust

    Complete the application and agreed payment. Finalize initial trust documents, obtain Tax ID from the IRS and open the trust bank account.

  3. Transfer the intended assets

    Arrange documented transfers of assets or real estate. For a planned sale, confirm trust ownership and title prior to closing.

    BEFORE SALE

  4. Complete the property sale

    When trust-owned property is sold, the title company sends the proceeds to the trust bank account according to the closing instructions.

  5. Manage assets and plan for succession

    The trustee administers assets under the trust agreement. Conduct a semi-annual/annual trust review to ensure all is fine with assets, beneficiaries, successor trustees, and any necessary updates with the servicing team.

  6. Keep records and meet filing requirements

    Maintain transaction records. Have the accountant determine and prepare required trust tax returns, beneficiary reporting and payments.

    ANNUALLY

Before a sale: confirm the required ownership transfers and closing arrangements.

Calendar-year Form 1041 is generally due April 15; confirm exceptions and extensions.

Planning considerations

Tax treatment
Review treatment of sale proceeds, income and distributions.
Succession
Confirm trustee continuity and beneficiary provisions.
Estate documents
Review included POAs, living will and guardianship documents.

Tax and asset-protection outcomes depend on trust terms, applicable law and individual facts.

Filing reference: IRS Form 1041 instructions

The process at a glance

1031 Exchange

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A 1031 exchange can defer tax on gain when qualifying business or investment real property is exchanged under IRS rules.

  1. Plan the exchange

    Confirm that both properties qualify. Review ownership, investment goals and tax considerations with your tax, legal and real estate advisers.

  2. Arrange the exchange before the sale closes

    Engage a Qualified Intermediary (QI) and put the exchange agreement and transfer documents in place.

  3. Close the sale of the existing property

    The QI holds the exchange proceeds. Structure the transaction to avoid actual or constructive receipt of the funds.

  4. Identify replacement property

    Send a signed, clear written identification to the QI within 45 days. Follow the applicable property identification rules.

    45 DAYS

  5. Review and acquire replacement property

    Review condition, value, financing and title. Coordinate with the QI to acquire the identified property by the completion deadline.

    180 DAYS*

  6. Keep records and report the exchange

    Retain exchange and closing documents. File IRS Form 8824 with the tax return for the year of the exchange.

Both periods start at the sale closing. The 45 days are part of the 180 days.

*Complete by the earlier of 180 days or the tax return due date (including extensions).

Possible tax outcomes

Full deferral
Qualifying gain is deferred when all requirements are met.
Partial deferral
Cash, non-like-kind property or net debt relief may be taxable.
Taxable gain
If the exchange does not qualify, the gain may be taxable.

Property Owner

  • Find a permanent solution for Capital Gains that isn't complicated or time consuming.
  • Additional benefits that are generational.
  • Help you need when you need it.
  • Experience tax relief that lasts.

Real Estate Agents

  • Partner with us.
  • Powerful tool.
  • Stand out / be unique in your field.
  • Learn more how you can benefit.
  • Complete support to help you.

Learn more details on how to properly operate and benefit from this powerful tool.

Complete this form today and visit with one of our trust specialists.

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