Transaction and Design Mechanics

    • Defer payment of capital gains taxes: Money is taxable only as actually received

    • Sales agreement includes language allowing for installment sale

    • Periodic payment agreement is assigned to Assignee

    • Life insurer issues a guarantee (promise to pay) on Assignee's performance

    • Assignee funds the payment liability by purchasing an annuity from a life insurance
      company

    • Can be paid monthly, annually, lump sum, for life, or any combination thereof

    • Benefits are designed to meet the seller's needs

    • Minimizes taxation

    • Allows the funds lost to taxation to be put to use by the seller via tax-deferred
      growth

    • Payments may be made to either an individual or a corporation