When considering a Deferred Sales Trust (DST) for capital gains tax deferral, selecting the right trustee is crucial. A knowledgeable trustee is essential, as they should thoroughly understand DSTs and other capital gains deferral strategies to ensure you’re using the best approach for your needs. Experience is also key; you want a trustee with a proven track record in building and managing DSTs, handling IRS audits, and successfully investing across various asset classes like stocks, real estate, and cryptocurrency. Financial stability is another important quality. Your trustee should be financially savvy, free from conflicts of interest, and have a clean financial history without issues that could jeopardize their ability to administer your trust. A detail-oriented trustee is vital because DSTs involve many intricate components that require careful record-keeping and effective communication. Reliability is also crucial. Early interactions, such as whether they return calls promptly and attend meetings on time, can indicate their dependability. Lastly, collaboration with other professionals is essential. Your trustee should work well with your financial advisors and be able to collaborate with CPAs, tax attorneys, and other financial experts to manage your trust effectively.
source: https://capitalgainstaxsolutions.com/choosing-a-trustee-you-can-trust/
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