Frequently Asked Questions

A 537 Installment Sale Trust (IST) is a legal trust structure authorized under IRC Section 453 that allows the seller of an appreciated asset to defer capital gains taxes by receiving installment payments over time. The trust acts as an intermediary — purchasing the asset and reselling it — while the seller receives scheduled payments and is only taxed as principal is returned.

A 1031 Exchange requires you to reinvest into "like-kind" real estate within strict timelines (45-day identification, 180-day close). A 537 IST has no like-kind requirement, no reinvestment deadlines, and works with a range of eligible appreciated assets, including real estate and businesses. You also receive predictable income payments instead of being locked into a replacement property.

Nearly any appreciated asset can qualify, including commercial and residential real estate, businesses, stocks, cryptocurrency, and other capital assets. Unlike a 1031 Exchange, there is no "like-kind" restriction.

You are taxed only as principal is returned to you through installment payments. Interest and investment income earned inside the trust can grow tax-deferred. This allows you to spread your tax liability over 15–30 years rather than paying it all upfront at the time of sale.

After the trust purchases and resells your asset, the proceeds are invested according to the trust agreement. You receive regular installment payments (typically monthly or quarterly). The trust is managed by an independent trustee with full transparency — you receive regular statements and have visibility into all trust activity.

IST Admin Services provides independent, qualified trustees — including attorneys and CPAs — who manage the trust in accordance with the trust agreement and IRS regulations. The independent trustee structure is a critical compliance requirement that sets our approach apart.

Fees vary based on the size and complexity of the transaction. We provide a detailed fee schedule during your initial consultation so there are no surprises. Our fees cover trust setup, administration, trustee services, and ongoing compliance.

Every engagement is structured with comprehensive documentation, independent legal opinions, and full compliance records. Our team has extensive experience working with the IRS and will support you through any review process.

The first step is a free consultation where we review your specific situation, estimate your potential tax savings, and determine if a 537 IST is the right strategy for you. You can schedule a consultation through our Contact page or call us at (800) 366-1360.