He knows titling with partial ownership and friendly equity stripping can prevent creditors getting to assets they shouldn’t. Some of his friends lost everything when banks called loans and seized equity unjustly.
Carmel, IN (PRWEB) July 13, 2017
Custom Structured Settlements, LLC recently helped a customer, aka “Hopson (name changed due to confidentiality),” turn $27,000 into $400,000 in seven days. Hopson was about to owe a $400,000 tax bill. For $27,000, Custom Structured Settlement’s unique VIP℠ process (Vendor, Intermediary, or Partner) gave him asset protection, reinvestment in his next deal, and new deductions.
“Hopson knows land development. He also went through the 2008 credit crunch,” said James Smyth, Executive Director of Custom Structured Settlements, LLC. “He knows titling with partial ownership and friendly equity stripping can prevent creditors getting to assets they shouldn’t. Some of his friends lost everything when banks called loans and seized equity unjustly.”
Hopson’s TD, LLC (“TD”) had a C-Corp manager and was 99% owned by him. TD owned 36% of Greymead, an apartment complex, with other partners. Greymead was selling, and Hopson faced $1 million of tax on capital gains and recapture. Hopson’s $2.4 million in old carryforward market losses still left him with $400,000 of recapture tax to pay. When the cash freed up, it was going to be in TD and exposed to general creditors.
“Our Double Vault℠ wealth and trust protection strategy appealed to Hopson,” added Arthur Jensen, Senior Tax Director of Custom Structured Settlements. “We showed Hopson how, by selling us part of TD for a Note before the Greymead closing, he protected proceeds at closing from outside creditor seizure. As a side benefit, our Note stepped up basis in our percent of TD and the property through §754. By adding wealth and trust protection against outside creditors, 32% of taxes are wealth preserved and Hopson’s C-Corp stays in control of all funds.”
Hopson’s accountants and attorney provided transactional review. They recognized that TD’s LLC and trust agreement kept Hopson in control of the money, Custom Structured Settlements ownership provided outside creditor protection, and §453(c) gave a step-up in basis for a Note while preserving wealth creation ability.
“Hopson’s outside creditor wealth protection, our 60+ years combined experience, and our systems to reduce personal and business risk and enhance profitability match the economic substance and bargain-sale nature of our relationship,” noted Smyth. “Hopson’s lawyer made sure that we signed TD’s operating agreement, Hopson isn’t exposed to our creditors, and Hopson stays in control.”
Because the first deal was smaller, Hopson made a 14.7x return on the $400,000 saved to reinvest. Doing more business, that will retroactively increase to 30x plus. “After our closing, we looked for even more ways to assist Hopson’s wealth creation, preservation and protection,” concluded Jensen. “VIP is a unique process for determining the best approach to save and protect. We don’t do any deal the same way. Each situation is different. Sometimes we use a Vendor approach (the V), sometimes an Intermediary approach (the I), and sometimes a Partner approach (P). Our goal is to discover the business opportunities and approaches that accomplish the goals of our customers.”
About Custom Structured Settlements, LLC
Custom Structured Settlements, LLC helps with structured settlements of taxable transactions. Its services ensure enormous tax savings, asset protection, wealth preservation and legacy planning. For more information, please call (317) 268-8880, or visit http://www.customstructuredsettlements.com. Custom Structured Settlements, LLC is located in the SePRO Tower, 11550 N. Meridian Street, Suite 125, Carmel, IN 46032.
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