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hi Brett Schwartz here we're covering cost fees and posts close with your deferred sales trust so if you are considering using the deferred sales trust you're probably curious about the cost and/or if you've already closed it you saying hey what did those cost again I want to make sure that I understand those again and and have a good good clarity on that so let's start with the cost so there's a one-time cost to the tax attorney so let's just use a million dollar example okay and as a million dollar sale of a property on the sales price it's one point five percent okay and so that would be $15,000 to the tax attorney that's a tax and legal work that includes lifetime audit defense right which is very important I also provides indemnification that the attorneys provide for you remember they've done thousands of closes 15 no change IRS audits and have no pending legal litigation as of 2020 right they actually haven't had a big formal audit since 2019 and so that's good right that's a gives you peace of mind it gives me peace of mind it's very important that you have the confidence in and that's a part of that one-time legal fee to the tax attorneys now if your deal is above that price let's say it's a two million dollar deal then you'd pay at twelve thousand five hundred or one point two five percent on that second million dollars okay if it was a three million dollar deal you've hit another twelve thousand five hundred on that third million okay so the first million fifteen thousand second million twelve thousand five hundred third million twelve thousand five hundred and then if you add all those up together what that's about you know about forty forty thousand dollars forty five thousand dollars or so so that is how that works okay that is the one-time tax attorney fee okay second set of fees are built into all of the denote so the notes are typically member ten-year notes typically around eight percent target rate net of all recurring fees okay so all these fees I'm about to list now are the recurring fees the part of the structure and a part of managing the trust okay and that first one is that is the trustee fee and the financial advising fee okay so no matter how where the funds are invested you're looking at about 1.5 percent okay of accounts under management so if you sold a million-dollar deal okay and and you net it let's say five hundred thousand dollars into the trust which is our minimum by the way then you're looking at about one point five percent on that five hundred thousand dollars all right so that's how that would work and that's collectively no matter how and where the funds are invested and from there if you have we have what's called a tax return once a year fee it's about twelve hundred dollars there's an accounting fee it's a mark to market report for you gives you four reports per year for $250 one-time 250 per year and gets you all four reports and then you also have the daka account fee which is about fifteen hundred dollars okay that creates the direct access control agreement so those are the fees now again fast-forward down the road you have there's also some miscellaneous bank fees too you know ten bucks for a check here for a wire here but fast forward ten years down the road hopefully we've earned about nine and a half to ten percent so net of all those recurring fees that eight percent target rate now we can't promise that we don't know how the markets gonna go but so far in the past all of the deferred sales trusts been able hit that target rate again our past past performance is not a prediction of future results we cannot kind of promise that that's entirely for how the funds are invested and where they're invested okay but that is how that works so those that is the fees that is the cost and then as far as your part of it you might form an LLC to buy a piece of real estate which you would manage that LLC yourself and you would do a JV partnership with the trust if you wanted to do it that way and or you just receive income off of the trust if it's just a hundred percent in securities and then that sense you'll receive a 1099 and if you dip into principle you'll receive a little bit you'll pay a little bit of capital gains tax but if it's just interest payments you'll just pay ordinary income tax and so that's all you took that 1099 you report that to your CPA right and then as far as the capital gains tax solutions we're going to file the tax return on behalf of the trust so that is the overview hopefully hopefully that made some sense gave you some clarity if you have more questions of course reach out to us and and or just replay this video again right to get extra clarity on that thanks for watching the video