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May 9, 2008
Article #10
Author: Andrew Hull




Business sellers, real estate or other property* can now perfect a cash sale while enjoying tax-deferred advantages of an installment sale, but without the financial risk of unsecured payments!  

Whatever the reason, retirement, starting a new business, staying on with the new owner under an employment contract or selling real estate, the Structured Sale is for many, the best alternative to paying a huge sale year tax bill.

The cash sale by Addendum is modified into a unique type of installment sale whereby specific installment payments are secured by an annuity issued by a major, well known life insurance company.  Funds that would have been lost to taxes are first put to work in the Structured Sale annuity, BEFORE TAXES ARE PAID!  The conservation and redirection of taxes otherwise payable, is what makes  Structured Sale so attractive to a variety of Sellers.

Taxes are paid only on the installment payments, as and when received by the Seller, in the Seller’s tax year. Depending upon the Seller’s tax situation and a payout of about 10 years or longer, the guaranteed gain in payments received by the Seller may offset a large portion, and in some cases, all of the taxes paid; putting more income in the Seller’s pocket, net after-tax.  Actual results will vary by Seller and state.

Illustrative Example

$750,000 Deferred by The Structured Sale

(First payment to begin about one month after closing)

$4,906 per month for 20 years           Guaranteed Payout:  $1,177,440            + $427,440

Using these values as a basis for comparison, a Seller taking cash and then investing the sale amount, net after-tax, would have to earn as much as 9.80%, every year for 20 years, just to equal the guaranteed payout of the Structured Sale annuity.  The comparison is most meaningful to certain types of corporate and higher tax bracket Sellers, as well as those Sellers who are also impacted by a state income tax. Individual results will vary by the Seller’s situation and state.  Call (888) 480-0067 or go online: and click on the appropriate request for a current no cost or obligation illustration.

The Structured Sale can be used in the all cash sale, including borrowed funds, or with a large down payment and a Seller’s Carry Back Note.  The Seller decides how much cash to keep at closing, as well as how much to defer by future installment payments.  The Structured Sale documentation must be completed prior to the close of escrow. 



Retiring Sellers who want tax deferral and safe, management free income that is guaranteed.

Sellers who stay on with an employment contract.  Defer taxes until the end of the contract.

Sellers starting a new business.  Planned tax-deferred income; offset by anticipated expenses.

Sellers forced to sell because of poor health; obtain financial security and peace of mind.

Stockholder/partnership buyouts.  Larger payouts over time using today’s dollars.

Divorce Sales; for the non-working spouse, safe and predictable, management free income.

Property Sellers, in lieu of 1031 Exchange; avoid the hassle and pressure of a second mortgage.

Sellers who want to defer taxes and income on any portion of a sale.  Create retirement income.





When most people think of an annuity, it is usually of a type that accumulates funds over time, pays a single stream of income payments, or is responsive to the stock market.  The “Structured Sale annuity” utilizes both immediate and deferred payments that are fixed and determinable which are not affected by changes in the stock market.   There is no reinvestment risk to the Seller.

Flexible in its design, the Structured Sale allows a Seller to take advantage of:

·        Designing their own schedule of Installment Payments, “tailored” to meet their financial needs.

·        Installment Payments that are secured by an annuity which are “early payoff proof”.

·        Payments that can begin in about one month from closing or be deferred up to 20 years.

·        Payments made for most any specific period of time, or in certain situations, for a lifetime.

·        A single lump sum payment or multiple streams of payments are allowed; each can vary in amount, timing of payment and duration; satisfying multiple future needs.

·        Payments made monthly, quarterly, semi-annually, annually or in any combination. 

No out-of-pocket or ongoing costs to the Seller - No Cost to the Buyer!

The Structured Sale offers the Seller the ability to create their own schedule of installment payments, tailored to their specific needs.  Whether it is a single lump sum, payments for a few years or even a lifetime, the Structured Sale is for many, the best, hassle free alternative to just deferring taxes! 

*Pursuant to Internal Revenue Code Section 453, Installment Sales     

(888) 480-0067

Mr. Andrew Hull has been in the structured annuity industry since December 1980, and has designed or assisted in the placement of thousands of settlement annuity contracts.   Recognizing the tremendous demands of the Business Brokerage and Real Estate Industries, Mr. Hull pursues no other business and is a fulltime Structured Sale Broker.

This article is intended to be for informational purposes only and may not be construed as or relied upon as tax or legal advice.  Always consult with your tax and legal advisors.

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