A power of attorney is a legal document that gives a nominated party the ability to act on another person’s behalf. For the most part, a power of attorney allows someone to make decisions relating to healthcare and financial and property affairs. Acting in such a capacity is a big responsibility, and the person that you had originally chosen may no longer be up to the job. When should you change your power of attorney? When power is abused A power of attorney document puts the agent in a position of power. They have a legal duty to act in the best interests of the principal. For example, if th ..read more

Texas residents often choose to include powers of attorney in their estate plans. If a person becomes incapacitated by illness or injury, a properly executed power of attorney ensures that important financial or medical decisions will be made by a responsible and trusted individual. While powers of attorney can be versatile and useful estate planning tools, they should be drafted with care. There are also some pitfalls that should be avoided when creating one. Boilerplate documents Several websites offer power of attorney forms that can be downloaded for free or a modest sum. Using boilerplate ..read more

The Texas Comptroller of Public Accounts has proposed amendments to the state’s franchise tax apportionment rule in response to the Sirius XM case.  These amendments, published in the Texas Register on January 20, come after the Texas Supreme Court unanimously rejected the Comptroller’s “receipt-producing, end-product act” test contrary to the statute.  Amendment details and its impact on S corporations  The proposed amendments on Sirius XM Radio, Inc v. Hegar case to Texas’ franchise tax apportionment seek to source service receipts based on where the taxpayer’s personnel or eq ..read more

A trust is a legal document that can help securely transfer assets from an estate to beneficiaries. With the right trust, an estate may avoid taxes, probate and challenges. There are many different kinds of trusts, including pet, generation-skipping, spendthrift, charitable and special needs trusts. One trust that can benefit people who want to help ensure their assets are responsibly used is an incentive trust. An incentive trust allows the grantor to make unique clauses that limit how assets are used. The grantor can set specific conditions that beneficiaries must meet if they want to benefi ..read more

In short, estate planning is the process of making instructions for the management of your estate. Once you start making an estate plan, you will likely quickly realize that it is not as difficult as others made you believe.  However, it is easy to make mistakes when planning out your estate. Here are a few to avoid: Leaving all of your assets to a single beneficiary You could leave all of your assets to one person, such as a spouse, child or sibling. This would make the process easier and quicker for your beneficiary. However, you could outlive your beneficiary. If this happens, your ass ..read more

A power of attorney empowers a designated individual, called your agent in Texas, to act on your behalf in financial and/or medical matters, subject to conditions of your choosing. Choosing the right person for this critical role is essential. Texas law allows you to appoint any competent adult (at least 18 years old with sound mind) as your agent in a power of attorney scenario. They can be a family member (spouse, adult child, or sibling) or a close friend with proven loyalty and responsibility. Some designate a professional, such as a trust company or fiduciary, to act as their representati ..read more

In the past, we’ve discussed giving someone durable financial power of attorney (POA). Just as important is the person to whom you give medical POA. Under Texas law, a person with medical POA (also known as an agent) can consult with a patient’s (principal’s) medical team and make decisions on their behalf “according to the agent’s knowledge of the principal’s wishes, including the principal’s religious and moral beliefs; or if the agent does not know the principal’s wishes, according to the agent’s assessment of the principal’s best interests.” The best way to ensure that your agent (and your ..read more

A power of attorney in Texas authorizes a person to take action on behalf of another person. When you create a power of attorney you become the principal. The person you choose to act on your behalf is the agent. Why would anyone override a power of attorney? Powers of attorney are legally binding, but sometimes it becomes necessary to override the authorization. For example, your family and friends might discover the agent is unfit for the role due to abusing their position. What are the options for overriding a power of attorney? If you’re the principal and of sound mind, the concerned parti ..read more

When registering your business, deciding whether to choose LLC status or to be classified as an S Corp can have far-reaching implications for taxation and liability. If you ultimately choose an LLC structure, it’s important to know that you can elect to have your LLC taxed as an S Corp instead of as a pass-through organization, should you choose. This choice of tax classification will determine how the IRS treats your business for federal income tax purposes. Opting to have your LLC taxed as an S Corp can offer several benefits. Simplified tax reporting Businesses that elect S Corp status can ..read more

When a business is set up as a C Corp, this refers to the IRS code. This business would be registered under subchapter C of that code, which is the default position for many businesses. It can grow at an unlimited rate, and it is an independent legal entity. However, one important thing to note about C Corps is how taxes are handled. It can lead to a phenomenon known as double taxation, wherein the money that travels through the business is taxed twice by the government. People are often looking for ways to get around this issue so that more of the money stays with the company, the owner and/o ..read more