Do you have a Will?

When your children were little, you were their natural guardian.  You could make all their decisions regarding medical care.  The day that they turned 18 years old, all of that changed.  [...]]]> If you have a young adult that is going off to college, you really need to send them off with a Medical Power of Attorney.

When your children were little, you were their natural guardian.  You could make all their decisions regarding medical care.  The day that they turned 18 years old, all of that changed.  You are no longer their guardian.  You have no decision making authority over an adult unless (1) you are appointed guardian (temporary or permanent) by a Judge; or (2) they give you authority under a Power of Attorney.

Medical Powers of Attorney allow you to act as Agent for your young adult when they become incapable of making medical decisions themselves.  This would apply if they are unconscious from a car accident, under anesthesia for a medical procedure, or suffering from some type of impairment that prevents them from being able to make their own decisions.

This document has become particularly important under HIPAA’s (Health Insurance Portability and Accountability Act) Privacy Rule.  Hospitals have often read the privacy act broadly and have been unwilling to allow patient information and condition to be released to families without the express permission of the patient.  However, if you are named as the Agent under your adult child’s Medical Power of Attorney, the doctors and hospitals are required to provide the information so that you can make an informed decision regarding your loved one’s care.

A Medial Power of Attorney is an inexpensive document to prepare, and allows you to continue looking after your young adult.  It is a wonderful graduation present!

What if you had a child that did something really dumb [...]]]> Under Texas law, if you have ever been convicted of a felony or a crime involving moral turpitude (such as embezzling funds), you are automatically disqualified from serving as an Executor and received Letters Testamentary or Letters of Administration.  There is no way around it.

What if you had a child that did something really dumb when they were 18 years old and they were convicted of a felony, but they have grown up to be a fine upstanding citizen and in no trouble with the law for the last 20 years? They still can’s serve as your Executor.  Don’t even bother naming them in your Will as Executor, since the judge will not be able to appoint them. It is not personal; it is the law.

What if your spouse was the one convicted of the felony?  They still can’t serve.

If you have named someone in your Will that is later convicted of a felony or a crime involving moral turpitude, you should update your Will to name someone else.  If they are named Executor but are disqualified from serving, the court will have to be told that they are disqualified (which is a matter of public record), so that the next alternate named will be able to serve.  Please save everyone the embarrassment.

Please let us know if you have any questions or need assistance with updating your documents.

Your spouse can leave their share to whomever they wish in their Will, otherwise the laws of intestacy say who gets their share. You might wind up owning your home with your in-laws… Kid you not!  If you would like to see what [...]]]> In Texas, you don’t automatically get the house just because your spouse dies.

Your spouse can leave their share to whomever they wish in their Will, otherwise the laws of intestacy say who gets their share. You might wind up owning your home with your in-laws… Kid you not!  If you would like to see what type of distribution you would have if you don’t have a Will, click here.

Most times, some type of probate action is required.  Even if you have a Will, the court usually needs the Will to be filed with the court so that the Judge can make a determination that it really is a valid Will.  You may or may not need some type of administration.  If no administration is required, you may be able to probate the Will as Muniment of Title.  To learn more about Muniment of Title, click here.

If you would like some general information about probate and considerations in choice of proceeding, please click here.

Let us know if you have any questions. You can call, email, or post.

There should be two sets of Minutes from the annual meetings; the Minutes of the Annual Meeting of the Shareholders and the Minutes of the Annual Meeting of the Board [...]]]> Texas corporations are required to have an annual meeting of shareholders and an annual meeting of directors. These meetings and their proper documentation are very important.

There should be two sets of Minutes from the annual meetings; the Minutes of the Annual Meeting of the Shareholders and the Minutes of the Annual Meeting of the Board of Directors.  The purpose of the annual meeting of shareholders is to elect the Board of Directors.  The purpose of the annual meeting of directors is to first appoint the officers that will carry out the day-to-day operations of the corporation, and second to set and approve the general direction of the corporation for matters that are outside the regular course of the corporation’s business.

LLCs should maintain minutes as well, although many single member, member managed LLCs do not. We recommend to our client that all LLCs conduct an annual meeting and maintain minutes. If nothing else, it is evidence that they recognize that it is a separate legal entity that they are managing.

While case law is very limited with LLCs, we anticipate that there will be changes in the law that will make LLCs subject to “piercing the veil” like you have with corporations. The more evidence you have that you are following all formalities, and not treating the entity like your private piggy bank or alter ego, the better.

Like corporations, an LLCs’ governing authority (members or managers) are required to call meetings and have votes on actions not apparently for carrying out the ordinary course of business of the company. That is akin to a special meeting of the Board of Directors in a corporation. You should always prepare minutes of any special meeting of the Board.

If you need assistance with preparing your minutes, please call or email. We can help!