Structured Installment Sales

This solution allows for business and real estate sales to be paid out in periodic payments via an annuity.

Opportunities

• Real Estate Sales

Personal Property (e.g., a home)

Commercial Property (e.g., an office or apartment building, a retail store, farmland, etc.)

• Sale of a Business or Practice (i.e., dental or veterinary practice)

How it Works

1. Buyer and Seller execute purchase/sale agreement with addendum agreeing to periodic payments
2. Buyer assigns periodic payment obligation to intermediary and transfers a lump sum for the full purchase amount
3. Intermediary purchases an annuity contract matching the obligation
4. Annuity distributes periodic payments to the Seller as specified in purchase/sale agreement
   * Structured installment sales must comply with IRC Section 453 by clearly stating the obligations of Buyer and Seller under 453. Section 72u also applies by requiring payments to begin within 13 months and be substantially equal, etc.