What is a special needs trust in a will?
February 9, 2010
A third party special needs trust ("SNT"), generally included in a person's will, is a supplemental needs trust established by a person for the benefit of someone who is disabled. In a will, property that would otherwise have been distributed to the disabled beneficiary outright will instead be held in a SNT for his or her benefit. More »
What changes have been made in dealing with estates?
February 9, 2010
Under the now-repealed estate tax laws, property passing from a decedent used to receive a step-up in cost basis equal to the property's fair market value as of the decedent's date of death. That tax benefit has been eliminated for persons who die in 2010, and instead, the basis of property acquired from a decedent will be the lesser of the decedent's adjusted basis or the property's fair market value on the decedent's date of death. More »
What changes have been made to the Federal generation skipping transfer tax?
February 9, 2010
Like the estate tax, the skipping transfer tax has been repealed the 2010 tax year. Under the old law, each person could give away during lifetime or at death up to $3,500,000 (the "GST exemption") without owing the generation skipping transfer tax. More »
What changes have been made to the federal gift tax?
February 9, 2010
Contrary to what many think, the Federal gift tax has not been repealed. However, the gift tax rate has been lowered to 35%, down from the 45% rate in 2009. Under the current gift tax law, each person may give away (during his or her lifetime) as much as $1, million in cash or other property without paying any gift taxes.
More »
Do I need to file gift tax returns?
February 9, 2010
Gifting property to children can be a great way to reduce your estate tax burden, but when you make gifts that exceed a certain threshold amount, you will want to file a gift tax return. More »
What is an ILIT?
February 9, 2010
An Irrevocable Life Insurance Trust, or ILIT, is a way to avoid estate taxes by removing life insurance proceeds from your estate. By giving an existing life insurance policy to this Trust or by giving cash to the Trust which is ultimately used to purchase a life insurance policy, you should effectively remove the proceeds of the insurance from your estate according to the IRS. More »
What is the status of the estate tax currently?
February 9, 2010
As of January 1, 2010, the Federal estate tax has been repealed -- but only for one year. As part of the 2001 tax act, Congress increased the amount persons could give away tax-free at death (the "Exemption Amount"),. This amount increased each year over a 10 year period. More »
Key Elder Law Numbers for 2010
February 9, 2010
ElderLaw Answers released a short summary of the key elder law numbers for different federal tax and benefit programs for 2010. The summary is much better than sifting through the various governmental portals for this information. More »
What is a pourover will?
February 9, 2010
When someone has created a revocable trust, we usually create a pourover will. This will protects the individual or couple in case there is property that does not get contributed to the revocable trust. More »
What is a HIPAA release?
February 9, 2010
HIPAA (the Health Insurance Portability and Accountability Act of 1996) requires health care providers to be very careful how they release health care information. All health care providers are required to make reasonable efforts to limit the release of protected health information to the minimum necessary to accomplish the intended purpose of the particular disclosure or request for disclosure. More »
What is a medical directive?
February 9, 2010
A Medical Directive (or Directive to Physicians) allows you to state whether you want or do not want life-sustaining treatment to be utilized to keep you alive if faced with a terminal or irreversible medical condition. It is much better for you to make your end of life decisions made in advance so that your loved ones, your doctors, and your medical power of attorney knows your desires. More »
What is a codicil?
February 9, 2010
A codicil is a legal document that amends your existing Will without revoking the Will in its entirety. Codicils can be used to an existing will provision, a new will provision, or delete an existing will provision. More »
How do I appoint a future guardian for my children?
February 9, 2010
In Texas, appointing a guardian for one's children is normally done in one of two ways. More »
What is a sole proprietorship?
December 30, 2009
A sole proprietorship is the common and form of business. Most small businesses begin as sole proprietorship, and many family-run businesses continue to use this form. In a sole proprietorship, a single individual engages in a business activity. There is no formal paperwork required by the state of Texas in order to start or form a sole proprietorship. More »
When can my child choose which parent to live with?
December 26, 2009
In Texas, a child who is twelve years of age or older may choose the parent he or she wants to live with, subject to the court's approval. This must be done in writing (usually like an affidavit), and is filed with the court. More »
What is Separate Property?
December 22, 2009
In Texas, "Separate Property" consists of: * the property owned or claimed by a spouse before marriage * the property acquired by the spouse during marriage by gift, devise, or descent * the recovery for personal injuries sustained by the spouse during the marriage, except any recovery for loss of earning capacity during marriage. More »
What is community property in Texas?
December 20, 2009
In Texas, "Community Property" basically consists of all property acquired by either spouse during marriage that is not otherwise Separate Property. All marital is presumed to be community property unless it is proved to be separate property. Spouses may also agree in writing that his or her separate property is converted to community property. More »
Is there alimony in Texas?
December 20, 2009
The short answer is sort of. In Texas, it is possible to get "spousal maintenance", which is essentially like alimony. Typically, spousal maintenance is available if you have been married for more than 10 years; you lack sufficient property to provide for your minimum needs; and one of the following 3 scenarios applies to your situation: More »
How soon can I get remarried after my Texas divorce is final?
December 19, 2009
This is a question we often get asked by divorce clients. In Texas, neither party to a divorce may remarry the 31st day after the date the judge has signed the divorce decree. That means you should not plan a wedding for at least a month after the date of your divorce hearing. You would be surprised how many clients have had to move their wedding date after consulting with us. More »
City Council Reappoints Peterson
December 18, 2009
The Bryan City Council reappointed Chris Peterson to a position on the Board of Directors of the Research Valley Partnership. Peterson will continue to serve on the Board until June 2011, when he will be eligible for reappointment. Currently, he holds the position of Treasurer for the RVP. More »
What is the waiting period for getting a divorce?
December 18, 2009
In Texas, a court may not grant a divorce before the 60th day after the date the divorce lawsuit is filed. This "waiting period" is intended to give the divorcing spouses some time to decide whether they really want a divorce or were just acting in the heat of the moment. More »
Chris Peterson ends Bryan Business Council tenure
December 17, 2009
On December 14, 2009, Chris Peterson presided over his last official meeting of the Bryan Business Council. Peterson was appointed by the Bryan City Council to the post in January 2004, and served the maximum term of 6 years, including the last 2 years as President of the BBC. More »
What are grounds for divorce in Texas?
December 17, 2009
In Texas, the court may grant a divorce on any of three no-fault grounds: * insupportability * living apart for 3 years * one spouse's confinement in a mental hospital for 3 years More »
Who Was Supposed To Be Watching Grandma?
December 10, 2009
There is a popular tune played this time of year called "Grandma Got Run Over by A Reindeer" which relates that Grandma -- after drinking too much eggnog -- went out into the winter cold to get her medication and was run over by a reindeer. The question is, "Who was supposed to be watching Grandma?" More »
Planning for Your Elder Years
October 24, 2009
If we were to ask an older person what his or her most important concerns for aging are, we would probably get a variety of different answers. According to surveys frequently conducted among the elderly, the most likely answers we would receive would include the following three principal concerns or life wishes: 1. Remaining independent in the home without intervention from others 2. Maintaining good health and receiving adequate health care 3. Having enough money for everyday needs and not outliving assets and income To address these concerns or wishes and maintain the quality of life wanted in the elder years, it simply takes a little preplanning. More »
PreNeed (Pre-Paid) Funeral and Burial Plans
September 24, 2009
One way to plan in advance for the end of one's life is to sign a formal contract called a "preneed funeral plan." With this plan, money to pay for a funeral and/or burial is held in a trust, in an escrow account or paid through an insurance policy on the life of the person desiring the plan. Parts of or all of the funeral service and burial are designed in advance and pre-funded in advance and the family has little to do but show up. More »
How to form an LLC in Texas
August 15, 2009
Many companies in Texas choose to use a limited liability company (or LLC) for their business. LLCs are great small business entities because they provide limited liability while also providing flexibility for taxing purposes. More »
Peterson named Treasurer of RVP
May 27, 2009
Chris Peterson was named the Treasurer of the Board of Directors for the Research Valley Partnership. More »
College Station's Draft Comprehensive Plan
May 23, 2009
The City of College Station has come out with a draft of their Comprehensive Plan. More »
Collect your invoices quick or you won't get paid
April 16, 2009
A recent study revealed that bill more than 60 days past due can collected about 89% of the time. However, that number drops to 67% after 6 months, and to 45% after 1 year. More »
Long Distance Care Givers Receive Help
April 9, 2009
Living in a different city or state -- miles from aging parents -- can be very difficult. Keeping in touch by telephone and making long trips to help parents or aging relatives with their needs can be time consuming and not nearly as effective as being available full time in person. More »
College Station's New Zero Rise Floodplain Ordinance Taking Shape
April 7, 2009
The City of College Station has come out with a draft zero rise floodplain ordinance. More »
Estate Tax under Obama's Budget
April 2, 2009
Folks have been worried for some time about the changes to the current estate tax system with the change in President. President Obama's current budget does make a couple of significant changes to the current estate tax system. More »
Little Known Government Program Pays the Cost of Elder Care
March 24, 2009
WHAT IF 33% OF ALL SENIORS IN THIS COUNTRY could receive up to $1,949 a month in additional income from the government to help cover their elder care costs? THEY CAN! More »
2009 First Time Home Buyer Tax Credit
March 10, 2009
There is a new tax credit available for first time home buyers. The tax credit is $8,000 and does not have to be repaid. More »
College Station's Draft Tree Preservation Ordinance
March 10, 2009
On March 26, 2009, the College Station City Council is going to consider a tree preservation ordinance that has been in the works for some time. This ordinance will affect both developers and homeowners, so it is something that all should be aware of. More »
Nursing Homes for Veterans
February 26, 2009
Nursing home coverage for veterans is available from two sources within the Department of Veterans Affairs -- the veterans health care system and the state veterans homes system. More »
To Will or Not to Will
December 8, 2008
The Texas Bar Journal has a new client page that contains very basic information about why everyone should have a will. More »
Ending the Violence: How to Obtain a Texas Protective Order
April 12, 2008
"The Texas Department of Public Safety reports that in 2006, there were 186,868 incidents of documented family violence statewide. However, the Texas Health and Human Services Commission estimates that as many as 982,916 Texas women were actually battered that year. In Texas, more than 800 women were killed by their domestic partners from 1998 to 2005." More »
Peterson named to RVIC Board
April 5, 2008
Chris Peterson, a partner with Swearingen, Peterson & Benn, LLC, was recently appointed to the Advisory Council for the Research Valley Innovation Center, a business incubator formed by the Research Valley Partnership. More »
IRS Small Business Guide is available online now
April 2, 2008
The Small Business Resource Guide 2008, a one stop source for all the information a small business owner needs to comply with federal tax laws, is now available on IRS.gov. More »
EPA issues new regulation on lead-based paint
April 1, 2008
The Environmental Protection Agency has come out with a new lead-based paint rule that will affect the building and remodeling industry. More »
Texas Vehicle Exemption for Personal Vehicle Used in Business
March 25, 2008
Don't ignore April 1 deadline for exempting your vehicle from taxation. You already know you aren't required to pay property tax on your personally owned vehicle that you also use for business purposes. But do you know how your local appraisal district is handling this exemption? More »
Business Mileage Rates Increase for 2008
March 24, 2008
Beginning Jan. 1, the 2008 optional standard mileage rate for business use of a car (including vans, pickups or panel trucks) is 50.5 cents per mile. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. More »
Like Kind Exchanges (1031 Exchanges)
March 24, 2008
The IRS recently came out with a new fact sheet answering some of the most common questions involving like-kind exchanges. The new fact sheet can be found below or by clicking this link. More »
Long Term Care Insurance
March 19, 2008
Why buy long term care insurance? 1. It will help you keep your independence and dignity and allow you to make choices. When the time comes for paying for your long term care needs, you may end up spending your savings and then relying on Medicaid for assistance. Medicaid typically pays for a semi-private room in a nursing home, but not all nursing homes take Medicaid. In many states it is not easy to get Medicaid to cover home care or pay for assisted living. Many people want to stay at home, but with Medicaid may not be able to. Insurance allows you to have a choice of where you want to live. More »
New service from the IRS -- verifying Social Security information and identities
August 29, 2007
The IRS now has a website that allows employers to verify social security numbers and match them to the correct names. More »
Should I use a Living Trust or a Will?
July 20, 2007
Both living trusts and wills are used to accomplish the same thing -- transfer your assets on your death. Thus, there is no right or wrong answer to this question, at least in Texas. For the most part, the costs to probate in Texas are not very great (unlike many other states), which is why there is no right or wrong answer. More »
What changes were made to the minimum wage law?
July 11, 2007
The Fair Labor Standards Act increases the federal minimum wage in three steps: More »
Do I get a tax break for officing at home?
June 27, 2007
If you use a portion of your home regularly and exclusively for business purposes, you may be able to take a percentage of your expenses as a home office deduction. Expenses may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs. More »
Are limited liability partnerships really required to have insurance?
June 18, 2007
Absolutely yes! The San Antonio Court of Appeals recently concluded that individual LLP partners were personally liable on a commercial lease because the LLP failed to comply with the requirement that it carry insurance covering errors, omissions, negligence, incompetence, or malfeasance. More »
I sold my home for a profit. Do I have to pay taxes on that?
June 9, 2007
If you sell your home, you may be able to exclude from income any gain (the amount of your profit) up to a limit of $250,000 ($500,000 on a joint return in most cases). More »
How do we report taxes for a small business owned by my husband and I?
June 6, 2007
Legislation signed last week simplifies reporting for husband and wife owned businesses. The new law, effective for tax years beginning after Dec. 31, 2006, allows a husband and wife who file a joint return to elect to report income or losses in proportion to their interest in the business and not as a partnership. More »
What can I depreciate in my business?
June 1, 2007
In general, if business property is expected to last more than one year, the entire cost cannot be deducted as a business expense in the year you place it into service. It must be depreciated over the property's useful life (as defined by the Internal Revenue Code). More »
What is the plan for growth and development on the east side of College Station, Texas?
June 1, 2007
Since we are located in College Station, Texas, we get asked this question a bunch. College Station, which is home to Texas A&M University, is booming. This surge in jobs, residents and development has led to a myriad of traffic problems not previously seen here. However, there has been a plan proposed by a traffic consultant hired by the City. The plan extensively changes traffic patterns in east College Station, and will lay the groundwork for future subdivision and retail development in that area of town. The report can be found by clicking here. More »
Where can I find housing options for my parents?
June 1, 2007
Another lawyer sent me a link the other day to an internet comparison of nursing homes. It has some basic information comparing types of independent living, assisted living, and nursing home facilities. Click here for that website, www.newlifestyles.com. More »
How often do I have to pay my employees?
May 31, 2007
The Texas Payday Law ("Texas Payment of Wages Act") governs how and when employees of private employers get paid. Executives and professionals (like lawyers or doctors) must be paid at least once per month (i.e. monthly). All other employees must be paid at least twice per month. More »
I just started a business. What does it mean that I have to pick an "accounting year" and "accounting method?"
May 30, 2007
This is often confusing for folks who are just starting a business. The IRS website helps explain the different options available: "All taxpayers - including small businesses - must report income and expenses on an annual basis. More »
Can I collect a real estate commission?
May 22, 2007
In Texas, only a licensed real estate agent or a licensed attorney can collect a real estate commission. Chapter 1101 of the Texas Occupations Code specifies as follows: More »
Veterans Long Term Care Benefits
May 17, 2007
The Department of Veterans Affairs provides three types of long term care benefits for veterans. More »
Where should I go for tax return preparation?
May 16, 2007
We use a certified public accountant in our local area who commonly deals with small business owners. However, there is no right or wrong answer to this question. The IRS website does offer some very practical tips on choosing a tax preparer. More »
How do I get my homestead exemption on my new home?
November 2, 2006
Certain types of property will qualify for an extra Texas property tax rebate called the homestead exemption. Basically, the homestead exemption allows you to pay less in taxes on your home than you would normally be entitled. More »
I lost my social security card. How do I get another one?
November 1, 2006
You can replace your Social Security card for free if it is lost or stolen. However, you are limited to three replacement cards in a year and 10 during your lifetime. Legal name changes and other exceptions do not count toward these limits. More »
Practical real estate advice
November 1, 2006
While looking for some ideas on future blog entries, I came across this excellent, starightforward blog entry from a real estate agent in Sugarland, Texas. More »
What will my business pay under the new Texas Franchise Tax?
October 30, 2006
Every business is obviously different, so it is hard to answer. But, the Texas State Comptroller has just released a new calculator that can help you figure out what your business can expect to pay under the new Texas Franchise Tax More »
Social Security cost of living increases announced
October 29, 2006
The Social Security Administration announced that social security and SSI recipients will have a 3.3% increase in their benefits. This increase is a cost of living adjustment. If you receive social security or SSI, you will see a slight increase in your checks. More »
What should I do if some steals my identity?
October 29, 2006
Here are some practical steps for you to take if you become a victim of identity theft. More »
Social Security cost of living increases announced
October 29, 2006
The Social Security Administration announced that social security and SSI recipients will have a 3.3% increase in their benefits. This increase is a cost of living adjustment. If you receive social security or SSI, you will see a slight increase in your checks. More »
How can I obtain a credit report?
October 27, 2006
You can contact one the 3 major credit reporting agencies. More »
How can I protect myself from identity theft?
October 26, 2006
Identity Theft is now a big issue and is becoming more common everyday. The following are some common sense steps to protect yourself from someone stealing your identity and hurting your credit or your finances. More »
Who makes medical decisions for me if I cannot make them myself?
October 11, 2006
With a Health Care Power of Attorney, you can decide exactly who will make health care decisions for you if you cannot. The Health Care Power of Attorney is a legal document that designates what family members or friends that you want to make critical health care decisions for you if you are incapacitated. You can even designate in what order those individuals will serve. The Health Care Power of Attorney ends the guessing game about which family member will make decisions at the hospital when time is of the essence. No more family disagreements about who will make that decision. Instead, one person is clearly designated to make decisions for you. More »
How long does it take to get divorced?
October 10, 2006
It depends. Isn't that a great lawyer answer! But it really does depend on many factors. More »
Am I common law married?
October 9, 2006
Someone recently asked this question in the office, which caused us to again look at the common law (or informal marriage) statute. According to the Texas Family Code, there are 2 ways to be informally married. More »
Do I need a will?
October 9, 2006
I recommend that my clients have a will for several reasons. First, with a will, you decide who inherits your money and possessions. Without a will, a Texas statute and the court will make that decision. Many times your wishes would not have been the same as what the statute and courts provide. More »
Who would raise my children if something happened to me?
October 7, 2006
I recommend that my clients with minor children choose who they want to be the future guardians of their children through a legal instrument commonly called a Designation of Guardian. By signing a Designation of Guardian, you can decide exactly who your first, second, third and even fourth (or more) choices to raise your children are in the event of your death. This legal document is typically honored by the courts, and avoids disputes between family members (or both sides of the family) as to who will raise your children. The Designation of Guardian will allow you to pick the most suitable person in your eyes to raise your children. More »
Medical Power of Attorney
October 6, 2006
We get a lot of calls at the office about drafting wills, but no one ever calls about powers of attorney. Also, we have lots of clients that come in with a poorly drafted will that was done by some cheap lawyer or by the client himself, but give me a blank stare when I ask about powers of attorney. If you take nothing else from this post, please remember this: IF YOU PLAN FOR DEATH ONLY (AND NOT DISABILITY) YOU HAVE ONLY DONE HALF THE JOB. More »
I heard that the estate tax is being repealed. Do I really need to plan for estate taxes in my will?
October 6, 2006
This is another common misconception that is spread around (and quite frankly asked about by my clients in our initial estate planning conferences). More »
