Frequently Asked Questions

   Customer Question                                                     #1 Insurance Protects You 

  You know what I hear the most from my clients, who are exclusively real estate investors? “I thought all I needed to protect my assets was a general liability insurance policy?” This couldn’t be more further from the truth.  Unfortunately most people won’t sit down and read these exclusions. And even if they did, they probably wouldn’t be able to understand the complex legal language insurance companies use in their contracts. What these exclusions do is prevent you from suing a company for any particular reason, as outlined in the “exclusion”. It could be an exclusion for something as simple as a fire caused by a microwave, to a volcanic eruption.
Most liability insurance policies will protect you from a slip and fall. That’s it. When a lawsuit comes around, your insurance company will be nowhere to be found. This is why you need a real asset protection strategy. A proper asset protection strategy is supported by:

• Smart contracts
• Legal entities such as LLC’s, Trusts, Irrevocable Trust and Corporations, FLP.
• Insurance

What I like about this bullet pointed list is that it shows how insurance is only one third of an asset protection strategy. If you’re a real estate investor and you only have insurance, that’s the equivalent of going into battle with only one third of the ammo you need.  

 Customer Question                                                         #2 Forming A Legal Entity Guarantees Your Protection 

  For example, once you have an LLC you have to be extremely careful about not mixing your business assets with your personal assets. The reason you form an LLC in the first place is to separate your business assets from your personal assets. If someone sues your LLC and the court finds out you used your business credit card for personal reasons,  a judge will allow a plaintiff access to your personal assets.  

 Customer Question                                                         #3 An Asset Protection Strategy Can Be Put In Place Later And Still Protect You. 

  I can’t tell you how many times I’ve received a call from a real estate investor seeking to put in place an asset protection strategy after someone’s just filed a lawsuit against them. Asset protection isn’t like a hat you can take on and off when you please, it should be in place well before anyone get a lawsuit Served on them.
if you transfer property after you are Served a lawsuit it may be deemed a fraudulent conveyance and the court will unwind the transaction back to you
 

 #1 Case Study  

  Dave was going though a Divorce and in seven days he was going to a Asset hearing in Divorce court. A  Asset hearing in Divorce court or Bankruptcy Court is known as going to hell one mistake and you are done.
The call came on a Thursday Dave ask is their anything he could do their is one thing you do. he said what.
you could place your home in a family limited partnership. 

general partner is a corporation with 3% ownership. limited partner  daughter 1       12.33%daughter 2       12.33%daughter 3       12.33%son          4        60%
Dave was only married for a year with one son coming out of the marriage and he love his son.
he went to court  Asset hearing in Divorce court and the judge ask him a Question why did you make the transfer of the property to the FLP.
He told the judge well I am up in age 59 years old I could die at any time.
It was for estate planning reasons. the judge smiled and said ok that is a valid reason. the house was valued at $900,000.00 and the wife did not get 50% of the house.

 

 Your Corporate Assets are at Risk—They Should Be Protected in Advance Once you use your corporate credit to develop your business into a going concern (or if you’re already at that stage) you need to be aware that your company is subject to numerous pitfalls including potential lawsuits. Depending on the specifics of your business and operations, you may be subject to being sued based on slip-fall accidents, contract disputes, product liability issues, medical malpractice, intellectual property infringement and a host of other corporate issues. If the other party prevails in such a suit, they may be awarded compensation that can literally ruin your business and cost you everything you’ve worked so hard to achieve.
Corporate Asset Protection 

 HIGH TIMBER MANAGEMENT  has developed proven asset protection structures and can implement them for you. 

What if the Business Isn’t Successful ?When using corporate credit to build your business, your plans may take longer than anticipated to implement or any number of risk factors may enter into the picture leaving you in a position where the business is no longer viable and yet your corporation has borrowed hundreds of thousands of dollars. If your company followed the advice of other corporate planners and credit consultants; you could be personally responsible for that debt.

Separation of Personal and Corporate Credit

Corporate and credit planners typically explain that personal credit and corporate credit are two different things—and that’s true—as far as it goes. But it doesn’t mean that creditors cannot “pierce the corporate veil” which means that the limited liability protection normally provided by a corporate entity is no longer intact and corporate liabilities can become personal liabilities. Piercing this veil is especially easy if the company is undercapitalized, doesn’t keep accurate books and records, or if a commingling of accounts takes place. Some planners even advise their clients to use their personal credit rating to help establish corporate credit—which is the worst thing to do, as that can allow corporate creditors to come after them personally.

HIGH TIMBER MANAGEMENT  Privacy Corporation At Advanced Corporate Solutions we strongly believe in the value of privacy—and we can structure a corporation for you, in such a way that you and your personal information are totally private—from both public records and corporate creditors. This level of total privacy affords you the greatest possible protection from piercing the corporate veil and yet you, and you alone, still control and operate your business. In addition, we provide you with a complete set of corporate minutes so you can keep your records straight. The bottom line is that even if things don’t work out the way you planned—the corporate debt that was created using your company’s corporate credit, can’t come back to you personally. You’re totally protected—leaving you free to use your corporate credit wisely and with peace of mind.

SOLUTIONS TO SUIT YOUR NEEDS

Unique, Proven Solutions  HIGH TIMBER MANAGEMENT  can provide you with a number of proven and creative ways to protect your business and

personal assets that are especially effective in today’s litigious society. We can provide you with not-for-profit corporations that can be used to minimize taxation, aged privacy corporations and standard “C” corporations, and you can use trusts to isolate your most liability-prone assets such as vehicles. ( HIGH TIMBER MANAGEMENT ) can also repair both your corporate and personal credit, allowing you to take maximum advantage of your business plans, ideas, and money-making opportunities  

Don’t Risk Your Life When your business is your life—it’s worth protecting! Don’t take unnecessary risks! Contact  HIGH TIMBER MANAGEMENT today for a no charge, no obligation consultation. You’ll be glad you did.