WHAT IS A STRUCTURED SALE?

A Structured Sale is a financial transaction in which the seller receives payment for their asset over an agreed-upon period of time, rather than as a lump sum. The payment is structured as an annuity or treasuries and may include an upfront lump sum and regular payments over the term of the agreement. The terms of a Structured Sale are typically tailored to meet the needs of the seller and may include conditions such as the amount of each payment, the length of the payment period, and the rate of interest. Structured Sales are commonly used in real estate and business transactions, as well as in estate planning. They provide a way for the seller to receive a steady stream of income over time, and can be a useful tool for managing tax liability.

WHAT ARE THE FINANCIAL BENEFITS OF A STRUCTURED SALE?

There are several financial benefits of Structured Sales:

1. Deferred Payment: Structured Sales allow the seller to receive payment over an extended period of time, rather than as a lump sum. This can be beneficial for sellers who need to generate income but do not want to liquidate their assets all at once.

2. Tax Deferral: Structured Sales may allow the seller to defer taxes on the sale until the payments are received.

3. Reduced Risk: Structured sales provide a predictable stream of income, reducing the risk of market fluctuations that can negatively impact a lump sum payment.

4. Increased Cash Flow: The seller receives regular payments over the term of the agreement, which can help to increase their overall cash flow.

5. Customization: Structured sales can be tailored to meet the specific needs of the seller, including the amount of each payment, the length of the payment period, and the rate of interest.

6. Estate Planning: Structured sales can be used as a tool in estate planning, allowing the seller to pass on assets to their heirs over time, rather than as a lump sum payment.

Overall, structured sales provide a flexible and customizable way for the seller to receive payment for their assets while reducing risk, increasing cash flow, and potentially deferring taxes.

WHO IS ELIGIBLE FOR A STRUCTURED SALE?

Typically, any individual or entity that owns an asset that can be sold is eligible for a Structured Sale. This can include individuals, businesses, and estates. The asset being sold can range from real estate, business assets, or other types of investments.

To participate in a Structured Sale, the seller must have a buyer who is willing to purchase the asset and agree to the terms of the Structured Sale. The buyer must also have the financial capacity to make the initial/premium payment as agreed.

In order for a Structured Sale to be a viable option, the asset being sold must have a value that can be realized. The terms of the structured sale must also be agreed upon by both the seller and the buyer, and must be compliant with relevant laws and regulations.

It's important to note that the eligibility for a Structured Sale may vary depending on the jurisdiction and the specific terms of the agreement. We can help you determine if a Structured Sale is right for you.