Deferred Sales Trusts - You'll Pay Ordinary Income Tax

You'll pay ordinary income tax on any of the interest payments you receive so let's say there's a million dollars in the trust. Most of our clients like to live off of the interest and they don't necessarily need to dip into the goose that lays the golden egg right? So these are 10 year increments 10 year terms with the balloon payment do it 10 typically interest only payments or a portion of the interest doesn't have to be the full 8 to be 4 or 5 or 6 or something like that. Every 10 years you can renew for 10 years like a refinance of a loan right and then it can go into a living trust where your kids can step into your shoes this is why