What is a Texas Partnership/ Trust Company?
The Texas Partnership/ Trust Company is a separate legal business entity that is the result of combining a specialized Texas General Partnership with two (2) or more Texas Revocable Living Trusts as partners.
This combination eliminates several serious disadvantages of an ordinary General Partnership. One serious disadvantage of an ordinary General Partnership utilized by itself is that the individual or corporate partners are jointly and severally liable for the debts and judgments of the ordinary General Partnership. The Texas Partnership/ Trust Company puts a legal barrier between the individual or other entity and the General Partnership, which are Texas Revocable Living Trusts which become the partners of the Texas Partnership. Only the designated partnership interest is held by a Texas Revocable Living Trust.
If the Texas Partnership has a debt or judgment that cannot be satisfied by the Texas Partnership, then the liability is limited to the assets of the Texas Partnership and the assets of the Texas Revocable Living Trusts which only hold the partnership interest of the Texas Partnership. The liability does not include individuals or other legal entities that setup the Texas Revocable Living Trusts. The Revocable Living Trusts are the partners that only are liable. This limit of liability is based on a specific provision of the Texas Trust Code.
In other words, if the Texas Partnership cannot pay its debts or judgments, only the assets of the Texas Partnership and the interests in the Texas partnership are lost. No other assets of any other individuals or entities can be legally subject to those debts and judgments of said same Texas Partnership.Liability Protection of Partners and General Partner. Do business, sue and defend lawsuits in all states without franchising or chartering.
The Ultimate Business Plan!
After utilizing a Texas General Partnership in combination with a Revocable Living Trust, you can take advantage of the following major features and benefits.
* Judgment proof assets or property from lawsuits and creditors of the individuals after four (4) years because a effectively addresses the Uniform Fraudulent Transfer Act Statutes.
* Eliminate registration and Franchise Fees in the state of domicile and other states while maintaining legal entity status.
* Avoid Probate and business interruptions as a result of a death.
* Minimize Federal Estate Taxes and State Inheritance Taxes.
* Eliminate annual Board meeting and reporting requirements. The Board of a Texas Partnership/ Trust Company may be perpetual with no additional meetings for the life of the partnership.
* Maintain the better equivalent of limited liability for shareholders by an alternative legal process and basis.
* Offer liability protection involving some other types of direct piercing and reverse piercing the entity’s veil or legal status besides the limited liability of shareholders.
* Maintain ultimate privacy of family and business affairs when compared to alternative planning.
* Obtain the legal protection of the U.S. and State Supreme Court decisions along with Federal and State Statutes upholding the Texas General Partnership/ Revocable Living Trust.
* Obtain most of the advantages of a “traditional” corporation and eliminate most of the disadvantages.
* Eliminate much of the servicing and maintenance costs of a corporation, L.L.C., etc.
* Replace your Corporation, Limited Liability Partnership, Limited Liability Company, General Partnership, Business Trust, Illinois Land Company, Foreign Trust, Offshore Corporation, or Nevada Corporations with the unique and cost effective features of a Texas Partnership/ Trust Company.
* Gain the advantages of multiple entities to isolate high liability assets or business from lower liability assets or business.
Important Questions to Ask Your Potential Business Plan Provider.
1.) If the legal entities utilized in your business plan are sued in a different state other than the state of incorporation, do the entities have legal standing to defend themselves without previously incorporating as a foreign corporation in that state?
No with a Corporation, LLC’s, LLP’s, etc.
Yes with a Texas Partnership/ Trust Company.
2.) What are the recording, registering, franchising or chartering requirements for the legal entities utilized in your business plan? With a Corporation, LLC’s, LLP’s, etc. It must be recorded, registered, franchised and chartered to obtain legal existence
None with a Texas Partnership/ Trust Company.
3.) What information becomes public record through the recording, registering, franchising or chartering requirements for the legal entities utilized in your business plan?
None with a Texas Partnership/ Trust Company. With a Corporation, LLC’s, LLP’s, etc. Names & addresses of directors, officers, registered agents, initial shareholders, incorporators, mailing addresses, state of incorporation.
4.) Does your business plan avoid the doctrine or principle of ultra vires which makes acts beyond a legal entity’s scope of power or its charter illegal and void.
No with a Corporation, LLC’s, LLP’s, etc.
Yes with a Texas Partnership/ Trust Company.
5.) Does the transfer of assets to your legal entities avoid probate or minimize federal estate taxes upon my death?
No with a Corporation, LLC’s, LLP’s, etc.
Yes with a Texas Partnership/ Trust Company.
6.) If I do not have enough funds to pay a licensed attorney to represent the legal entities you offer, can I represent the legal entities myself or pro-se in a court case?
No with a Corporation, LLC’s, LLP’s, etc.
Yes with a Texas Partnership/ Trust Company.
7.) If a creditor is not legally entitled to property or assets that is only controlled or possessed by a debtor, why is a nominee director required for asset protection?
With a Corporation, LLC’s, LLP’s, etc. Only purpose is to make sure that annual fees are paid.
With a Texas Partnership/ Trust Company. Not required, previous owners can be named as trustees or directors—no annual fees.
8.) Is the nominee director fully compliant with the wishes of previous owner of assets? Will the courts still consider the nominee director legitimate?
With a Corporation, LLC’s, LLP’s, etc. Yes, but this is not legitimate.
With a Texas Partnership/ Trust Company. Not Applicable
9.) What happens to the assets in the legal entity if the nominee director resigns, dies or fails to acts properly?
With a Corporation, LLC’s, LLP’s, etc. Huge Legal Problems
With a Texas Partnership/ Trust Company. Not Applicable
Our comprehensive approach is different from other asset protection programs. We believe that you should understand and have the book, chapter and verse offering legal backup for your asset protection plan. We have no book to sell unlike others who make false claims and misquote the law for their own benefit. You as a smart consumer should read the facts and always be aware of who has your best interest at hand.
Stay Informed and let ProAdvocate Group help you start your business off the right way!!