What does a structured installment sale cost, and who pays you?
The insurer pays a one-time commission of about 4% of the amount structured to the brokerage that places it. Hans Goldstein's share is about 2.4%. There is no trail. The commission is built into the annuity pricing, so it is reflected in the rate and you write no separate check. If no structure is funded, nothing is paid. The buyer pays nothing extra.
Buyer cash → Assignment Co. → fixed annuity → You, on schedule
Hans Goldstein structures installment sales for sellers and works alongside their CPAs. Email hans@goldsteinco.net or call 213-340-2018.
How is Hans paid?
By commission from the insurer, only when a structure is funded.
- Who pays it: the insurer that issues the annuity, to the brokerage that places the case.
- How much: about 4% of the amount structured, one time. Hans's share is about 2.4%.
- When: after the annuity is funded at closing. No trail or ongoing fee.
- What you pay directly: nothing to Hans. No retainer, no hourly fee, no planning fee.
- If the deal does not close, or you decide not to structure: nothing is paid.
Because the commission is part of how the insurer prices the annuity, it shows up in the payments the insurer quotes, not as a line item on your closing statement. Put plainly: without a commission, the same dollars would buy somewhat larger payments.
What does that look like with real numbers?
Illustrative, using the rates above.
What is the tax bill on your sale going to be?
Send me the sale price and rough basis. Within one business day I'll email you the actual number and the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation. Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Only the structured amount counts. If you sell for $2,500,000 and structure $1,000,000, the commission is figured on the $1,000,000, not the sale price. Cash you take at closing carries no commission.
What other costs should you expect?
How should you judge whether it is worth it?
Compare what the commission costs you against what you keep by deferring the tax.
The commission reduces the payments the structured dollars can buy. The deferral keeps tax dollars invested and, more importantly, can keep your gain out of the 20% bracket, under the 3.8% net investment income tax threshold (IRC §1411; $250,000 MAGI married filing jointly), and out of Medicare premium surcharges. If spreading saves little, because your gain already sits in the 15% bracket every year, the structure may not earn its cost. If a lump sum would push most of the gain into the top bracket, the saving can far exceed the commission. The minimum sale size page shows both cases with numbers.
Three habits protect you:
- Ask for the quote in writing. It should show the amount structured, every payment date and amount, and the total of all payments.
- Run the numbers both ways. Compare after-tax cash from taking the money at closing against the structured schedule. Your CPA should check the tax side.
- Know the trade-off. The structure cannot be accelerated, borrowed against or cashed out. That lock is what preserves the deferral; it also means the money is not available for emergencies.
Why disclose this at all?
Because a seller deciding whether to lock up a large sum should know who is paid, by whom and how much. Hans is a licensed insurance agent; the tax analysis is education to help you and your CPA decide, and the commission is paid only if you choose to structure.
Frequently asked
Q: Do I pay Hans anything out of pocket? A: No. There is no retainer, hourly fee or planning fee. The insurer pays a commission only if a structure is funded.
Q: Is the commission deducted from my sale proceeds? A: No line item appears on your closing statement. The commission is built into the annuity pricing, so it is reflected in the rate the insurer quotes.
Q: Is there an ongoing fee? A: No. The commission is one time, with no trail. The payment schedule does not change after funding.
Q: Does the buyer pay more? A: No. The buyer pays the same total price at closing as an all-cash purchase.
What should you read or run next?
- What interest rate does it pay, and how is it set?
- What is the minimum for a structured installment sale?
- Should I just pay the capital gains tax instead?
- Structured installment sale vs seller financing
- What a one-year sale costs in tax
- Capital gains exit calculator
- Installment sale calculator
- All structured installment sale questions
Who wrote this?
Find out what your sale is really going to cost you in tax, and what you can do about it
No retainer. On a funded structure, the insurer pays a one-time commission of about 4% of the amount structured to the brokerage firm that places it (Hans’s share is about 2.4%; no trail). It is built into the annuity pricing, not a separate fee.
Send me the sale price and roughly what you paid. Within one business day I’ll come back with the number you’re actually looking at and whether a structured installment sale can push it down. If it can’t, I’ll say that just as plainly.
You'll also get the plain-English Seller's Guide to §453: the math, the alternatives, and the cases where it does not work.
📞 Hans Goldstein · 213-340-2018 · CA Insurance License #4273294 · Independent §453 specialist · Goldstein & Co. LLC
Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Run your specific numbers
The calculator runs your sale through real 2026 federal + state tax brackets and shows §453 savings vs lump sum side-by-side.
Run the calculator → 213-340-2018