Integrity Law Group PLLC

How to Handle Contractual Infringements by Your Business Partner

After forming a business partnership, the parties often draft a formal partnership agreement. The main purpose of a partnership agreement is to detail each party’s rights and responsibilities and outline what will happen if one party breaches the agreement. A breach of a contract agreement is very difficult for all parties. Below, our Houston business law attorney outlines the steps to take after a contractual infringement by your business partner.

What is Included in a Partnership Agreement?

Forming a business partnership is about so much more than simply doing business together. It is also about establishing a contractual business relationship. The priorities and preferences of the parties involved guide the particular terms of a partnership agreement. The majority of contracts between business partners answer the following questions:

  • Which party or parties have financially contributed to the partnership, and how much were those contributions worth?
  • Which party or parties have agreed to make continuing financial contributions?
  • Is the partnership a limited partnership, a general partnership, or another form of partnership?
  • What are the legal rights and obligations of each partner?
  • How much compensation will each partner receive?
  • How will an infringement of a partnership agreement be resolved?
  • What are each of the partners’ fiduciary duties to the partnership?
  • Who has the right to vote, the obligation to vote, and when?
  • How can someone become a partner?

A properly drafted agreement with well-defined terms makes all the difference when an infringement occurs. Our Houston business law attorney can draft an agreement that will limit disputes and outline how to resolve them if they arise.

Why Do Contractual Infringements Arise?

A contractual infringement in a business partnership can happen for a number of reasons. The most common of these include:

  • Missing or ambiguous terms: When a contract is not properly drafted, it can cause confusion between the parties about their legal rights and obligations under the agreement. Missing or ambiguous terms can cause disputes to arise between partners.
  • Using company funds improperly: Infringements can arise when a partner spends company funds unscrupulously or improperly. This can affect not only the partnership but also the relationships between the partners and other associates and the business as a whole.
  • Acting without authority: Any time a partner acts without authority, it can cause issues in the business. For example, one partner may become excited about a potential business deal and sign the business up for it without obtaining the appropriate permission from the other partners.
  • Failing to recognize or address conflicts of interest: Conflicts of interest can happen when one partner is presented with an opportunity in which they will personally benefit. This alone does not necessarily create a conflict of interest, but it can be a red flag. Partners who fail to address possible conflicts of interest can breach their ethical obligations to the business.

When any of the above contractual infringements occur, there are a number of ways to resolve them.

Filing a Claim for Breach of Contract

If your partner has acted outside of the terms of the partnership agreement, you or the business may have to file a lawsuit against your partner for breach of contract. A breach of contract action can include allegations that your partner acted in bad faith. 

Under Texas law, all business partners are required to act in good faith. Business partners owe a duty of care to the company. Depending on the specific issue, you may also have to file a claim for a breach of fiduciary duties against your business partner.

Negotiating a Settlement

Not all lawsuits will end up in the courtroom. You and your partner may be able to negotiate a settlement agreement. In most cases, settlements occur while a lawsuit is pending, but there are exceptions to this. During negotiations, the parties will define what happened and the possible remedy that may be appropriate. As part of a settlement, the partners involved typically agree to keep the settlement amount and other arrangements confidential.

Expelling the Infringing Partner from the Business

Depending on the specific circumstances and the terms of the partnership, it may be possible to remove the infringing partner from the business. The applicable law and the terms within the contract, such as a buy-sell agreement, may determine if this option is available to you.

Pursuing Damages

The best option for remediating harm sustained by the business may be to pursue damages from the infringing partner. Again, the terms of the partnership agreement and the applicable law may define the amount of damages that are available. A business law attorney can help you maximize the damages you can pursue.

What Happens if You and Your Partner Do Not Have a Formal Agreement?

It is always recommended that business partners draft an agreement in the event that a dispute arises. However, not all partners draft these contracts when forming a partnership. If this is the case for you, there are still possible options under the Texas Business Organizations Code if your business partner has acted improperly. 

The Code provides options if you have a partial or incomplete agreement. Under Section 152.211(a), you can move forward if your partner has violated any duties under the partnership. To understand what these are, it is important to work with a Houston business law attorney who can advise you or your legal options.

Our Business Law Attorney in Houston Can Help After a Contract Infringement

For business owners, there is nothing more important than protecting your business, your investments, and your business relationships. At Integrity Law Group, PLLC, our Houston business law attorney has the ability to draft an agreement for you that will help you accomplish all of these tasks. 

If your partner has already infringed on a contract, we can advise you of your legal options and the next steps to take, as well. Call us now at (832) 280-9197 or fill out our online form to schedule a consultation with our experienced attorney and learn more about how we can help.

Securing Your Legacy: The Advantages of Estate Planning

It is a common misconception that estate planning is only appropriate for the wealthy or people of a certain age, but these are common misconceptions. The main benefit of having an estate plan in place is to ensure that your last wishes are executed in the event that you pass away. Without an estate plan, your property is unprotected and the intestate succession laws will apply. This means people may inherit your assets, and those people may not align with your wishes.

In addition to making sure the appropriate loved ones receive their inheritance, an estate plan can also protect your beneficiaries from certain taxes and other legal requirements. Below, our Houston estate planning attorney outlines more benefits of having a plan in place.

Eliminate the Need for Your Family to Make Hard Decisions

Estate planning can provide your family with the peace of mind they will need following your death. If you do not have an estate plan in place, your family members will have to determine who will inherit certain property of yours, and this is often extremely stressful for families. By taking the time to create a comprehensive estate plan, you will retain control over what will happen to your property after you pass away.

Also, if you ever become incapacitated at some point in the future, your family will also have to make important medical decisions on your behalf. These decisions are also very difficult and your family may not know of your wishes. Through an estate plan, you can create a will, power of attorney, health care proxy, and a medical power of attorney. These important legal documents can dictate these decisions, so your loved ones do not have to make them. They can also give you the peace of mind you need during your lifetime.

Protect Your Children

If you still have minor children, an estate plan can determine what will happen to them if you pass away or become incapacitated and cannot care for them. For many parents, choosing a guardian for minor children is the most important aspect of estate planning. This is a decision that requires serious thought, as the impact on your children will be significant. Most parents want to make this decision on their own instead of the courts making the decision for them.

There are certain priorities the Texas courts give to family members when making decisions about guardianship. For example, in most cases, the courts will appoint a grandparent to become a guardian in the event that neither parent can care for their children. If you want someone else to become guardian of your children, it is critical that you create an estate plan that makes your wishes known.

Limit Taxes and Legal Fees

If you include certain documents in your estate plan, it can allow your beneficiaries to receive their inheritance in a timely manner. A trust, for example, will protect your family members from going through the probate process which can include legal fees, court costs, and attorney fees. Probate is not only an expensive process, but it is also a lengthy one. If your entire estate has to go through probate, it can take a long time for your beneficiaries to receive their inheritance.

Trusts do not have to go through the probate process and so, the inheritance you left for loved ones can be distributed to them directly. It is important to work with a Houston estate planning lawyer who can advise on the best ways to limit taxes and legal fees.

Make Specific Bequests

Individuals commonly want to include certain bequests in their estate plan. Bequests are any gifts given to beneficiaries as part of a will. Bequests can include prized vehicles, art collections, family heirlooms, antiques, and more. There are also many different types of bequests. For example, a residuary bequest grants a person any remaining portion of the estate once all other property has been distributed.

Name Your Own Personal Representative

One of the most important aspects of any estate planning is the naming of a personal representative. A personal representative of any estate has many responsibilities. They must pay the expenses and final costs of the deceased, manage the estate, handle creditor claims, and more. Personal representatives have a fiduciary duty to act in the best interests of the estate, so it is essential that the person you choose is trustworthy.

Without an estate plan in place, the court will name a personal representative on your behalf. This may not be the person you would have chosen. Creating an estate plan during your lifetime will give you the reassurance that upon your death, your personal representative will be someone you trust to make the best decisions.

Continue Business Operations After Your Death

If you own and operate a business and you do not create an estate plan, there is a real possibility that your death may cause the business to shut down. This will not only create unnecessary financial hardship and stress for your loved ones, but it may also lead to your legacy being unprotected. If you do want to pass your business down to a loved one as an inheritance, creating an estate plan will ensure they receive it after your death and that your legacy will be protected. An estate plan can also leave specific instructions for the family member you want to take over the business, so they can run it just as successfully as you did.

Call Our Estate Planning Lawyer in Houston to Get Started Today

Regardless of your situation, it is essential that all adults have an estate plan in place. At Integrity Law Group, PLLC, our Houston estate planning lawyer can help you draft the important documents that will help your family members make difficult decisions, and that will ensure your final wishes are fulfilled. Call us now at (832) 280-8874 or contact us online to request a consultation with our experienced attorney and to obtain the legal advice you need.

Protecting Your Personal Assets in the Event of a Business Lawsuit

It is critical to protect your personal assets in business, particularly when you are facing a lawsuit. A lawsuit will be bad enough for your business, but you do not want it destroying your personal property, as well. Below, our Houston business law attorney outlines some of the best ways to protect your personal assets in the event of a business lawsuit.

Use Proper Business Entities

Using the right business entity is critical for protecting your personal property in the event of a business lawsuit. To give yourself peace of mind and a sense of security, you should consider all possible options before making a final decision, from limited partnerships to corporations to LLCs. Do not unnecessarily make yourself vulnerable. By establishing the proper business entity, you will have legal protection in the event of litigation or a business dispute. The different business entities and the protection they do or do not provide are as follows:

  • Sole proprietorships: As a sole proprietor, you and your personal assets have no protection in the event of a business lawsuit. One mistake can jeopardize your personal assets, as well as your business’ profits and income.
  • General partnerships: A business partnership can be profitable for all parties, but it can also come with some risks. If your business is sued, you and your partner could be held jointly liable, so it is important to choose partners carefully.
  • Limited partnerships: A limited partnership will allow you to enjoy the benefits of being an entrepreneur without exposing yourself to the risks associated with it. When you structure your business as a limited partnership, any lawsuits filed against the business do not extend to any assets outside of it. 
  • Corporations: Establishing a corporation is a great way to protect your personal assets in the event of a business lawsuit. Generally speaking, your personal assets are not vulnerable to a business lawsuit unless fraud is involved.
  • Limited Liability Companies: LLCs offer great asset protection, as well as flexible taxation options. Owners of an LLC can protect their business from creditors, who would only be awarded a membership interest without gaining control or access over the assets of the company.

Insurance

Certain professions, such as doctors, financial advisors, and real estate agents, are at particular risk of having a lawsuit filed against them. Insurance is very valuable when trying to protect your personal assets, so it is critical to ensure that coverage is sufficient and that it remains current. Sometimes, investing in extra coverage can be the difference between staying afloat or facing financial ruin during a lawsuit. The different types of insurance businesses may need are as follows:

  • Homeowners insurance
  • Commercial liability insurance
  • Worker’s compensation insurance
  • Auto insurance
  • Umbrella coverage
  • Long-term care insurance

Utilize Retirement Accounts to Protect Assets

Under federal law, retirement accounts offer a great deal of asset protection. Retirement plans that are ERISA-qualified have unlimited asset protection. It is critical to consult with a Texas business law attorney who knows the law and who can help determine whether creditors can choose between the federal and state exemption amounts.

Titling

You can protect property that is co-owned by looking at the titling options that are available. Tenancy by the entirety is an agreement between married couples that is legally binding and that protects the primary residence from a spouse’s creditors. This option does not always apply to investment properties, but there may be other forms of protection, such as tenants in common or joint tenancy, which can provide protection in the event the owner of the property passes away. To fully understand what title you need for your situation and to secure maximum asset protection, it is important to consult a lawyer who can help with these options.

Transfer Ownership to Family Members

Maintaining control of your assets is critical to ensure your financial security. By creating an irrevocable trust, you can place property into the trust, which protects it from creditor claims while also providing an inheritance or income stream for your family members and other loved ones in the future. This is only a viable option if you have sufficient funds, and the transfer of ownership will not leave you insolvent. Some of the most common types of trusts used to protect assets from lawsuits are as follows:

  • Domestic asset protection trust: This type of trust exists solely for the benefit of the person who created the trust. A domestic asset protection trust allows the creator to keep a certain degree of interest in the property in the trust. Unlike in other states, though, a domestic asset protection trust does not protect the creator if they are also the beneficiary of the trust.
  • Lifetime qualified terminable interest trust: A lifetime qualified terminable interest trust is for the benefit of the spouse, and they utilize the gift tax marital deduction to reduce overall taxes. This type of trust can also use the federal estate tax exemption for the less wealthy spouse and provide a lifetime of asset protection for the benefit of the wealthier spouse.
  • Medicaid planning trust: Through a Medicaid planning trust, a person can qualify for Medicaid and still maintain an income for the spouse who does not apply. When assets are transferred into these trusts, they can pass to heirs who are protected from the government’s estate recovery, which would require the Medicaid assets to be paid back during the lifetime of the creator.
  • Spousal lifetime access trust: A spousal lifetime access trust is created for the benefit of a spouse and uses the lifetime gift tax exemption as well as the annual exclusion gifts.

Our Business Law Attorney in Houston Can Help Protect Your Assets

As a business owner, it is important that you not only protect your company, but your personal property, as well. At Integrity Law Group, PLLC, our Houston business law attorney can advise on your case and suggest the best asset protection tools to use. Call us now at (832) 280-8874 or contact us online to schedule a consultation and to learn more.

Navigating Real Estate Legal Disputes: Answering the Top Five Questions

There are many different real estate legal disputes that can arise during any transaction. Clients and developers may have a disagreement while residential or commercial property is being developed. Landlords and tenants can argue about non-payment of rent or improper maintenance of the property. Neighbors can encroach on their neighbor’s property. These are just a few of the most common types of disputes.

Any real estate dispute can be confusing. They can even be damaging to your business or your property. It is important that you speak to a Texas real estate lawyer who can help you through the complicated process and answer all of your questions. Below, our seasoned attorney answers five of the top questions we hear.

What is Real Estate Litigation Law?

Real estate litigation is an area of law that addresses disputes involving actual property such as homes, commercial properties, buildings, and land in Texas. Real estate litigation law is intended to protect the rights of property owners and anyone who uses the property. Real estate litigation law governs multiple issues ranging from loans, mortgages, and liens to title disputes, real estate contracts, and landlord/tenant law. Real estate litigation law also provides a process for filing a lawsuit when a dispute requires a resolution, such as those that involve easements or boundary lines.

Real estate litigation is sometimes necessary when a property owner believes another party has violated their rights, such as another property owner, a municipality, or an insurance company. When a property owner feels they need to enforce their rights, they can file a lawsuit with the court. Real estate litigation law is a legal area that is extremely complicated and many people do not understand the laws or process to follow. A Texas real estate lawyer can make sure justice is served and that people’s rights are protected.

What are Common Real Estate Disputes?

Some of the most common real estate disputes involve titles and property rights. These disputes commonly arise when two or more parties disagree about the use or ownership of real property. Some of the most common disputes include quiet title actions, boundary line disputes, and landlord/tenant disputes.

Boundary line disputes occur when two or more parties disagree about the exact location of a property line. Quiet title actions occur when a person attempts to establish that they are the undisputed owner of a specific piece of land. Landlord/tenant disputes occur when a tenant and landlord disagree about issues such as possession, rent, or other matters regarding the rental of the property.

Other real estate issues include easement disputes, contract disputes, nuisance claims, and adverse possession claims. Easement disputes arise when two or more parties disagree about the use of property owned by another party, such as access to natural resources such as water and right of way. Contract disputes occur when two or more parties enter into a contract and disagree about the terms of the agreement. Nuisance claims occur when land is used in such a way that causes another person harm or distress. Adverse possession claims occur when someone hopes to gain ownership of land by using it regularly over a certain period of time.

What Steps Should I Take in a Real Estate Lawsuit?

Every real estate lawsuit will differ slightly from others, as the remedies available are unique to the specific disagreement. However, there are some general steps to take during the process. They are as follows:

  • Collect evidence: Before even filing a lawsuit, or responding to one, you should collect as much evidence as possible. Evidence can include contracts, photos, property records, or written correspondence between you and the other party. It can also be helpful to search public records to find important information on the title history of the property. The title history may offer information about liens, ownership, and encumbrances that can help a case.
  • Speak to a real estate litigation lawyer: You have the right to represent yourself during a real estate dispute, but it is not recommended. A real estate lawyer can review the facts of your case and provide sound advice regarding the best way to resolve the disagreement. Real estate lawsuits are very complicated and you will greatly benefit from the help of an experienced attorney.
  • Consider alternative dispute resolution methods: Not all real estate lawsuits end up in the courtroom. Alternative dispute resolution methods such as mediation can resolve your disagreement in a faster and more cost-efficient manner.
  • File a lawsuit: A real estate litigation lawyer will know the process of filing your lawsuit with the court and fully outline your complaint as well as the remedy you are seeking.
  • Negotiate: You can negotiate with the other side to reach a settlement agreement at any point during the process. A real estate lawyer will have the necessary experience to negotiate a settlement that is fair.

How Long Does Real Estate Litigation Take?

No one can determine exactly how long your real estate lawsuit will take. The amount of time required depends on the type of dispute, the amount of research involved, and the willingness of all parties to reach an agreement. Still, real estate lawsuits can often take one year or more when they need to be resolved in a courtroom. After reviewing the facts of your case, a lawyer can provide an approximate timeline for your case.

Do You Need a Real Estate Lawyer in Texas?

Again, you are not required to have legal counsel to help with your real estate dispute. However, working with a Texas real estate lawyer will bring you many advantages. Real estate litigation is complicated and one mistake could hurt your case. At Integrity Law Group, PLLC, our experienced attorneys can draft your lawsuit, file it with the appropriate court, meet deadlines, and negotiate on your behalf as your case proceeds. Call us now at (832) 280-9576 or contact us online to request a consultation and to learn more about how we can help resolve your dispute.

The Benefits of Having a Prenuptial Agreement: Protecting Your Future Together

It is a stat no one wants to think about, particularly when they are planning a wedding, but approximately half of all marriages end in divorce. A prenuptial agreement is a legal contract between two people who intend to wed. Also called prenups, these contracts settle many important issues. Through a prenup, you can outline who owned certain property before the marriage, how marital property will be divided, and more. 

While you may not want to raise the topic of a prenup as you plan your wedding, these legal contracts have many benefits. Below, our Houston family law attorney outlines what these are.

Avoid a Complex Divorce

Not all divorces have to be messy legal battles. When there are feelings of frustration and hard feelings, or the two spouses are very contentious towards each other, a divorce can become much more complicated. Add financial issues to these feelings of resentment, and a divorce case can become explosive. A prenuptial agreement can help you avoid all of this. With most financial issues outlined in the prenup, many of them are already resolved and your divorce can simply follow what the document stipulates.

Young Couples Can Benefit From a Prenup

 It is a common misconception that prenuptial agreements are best utilized by older couples. Today, many younger people are marrying later in life than their parents and grandparents did. When a person marries in their late 20s, early 30s, or even later, they have typically already amassed a significant amount of wealth and assets. A prenup can protect your existing investments and assets, including business ownership, inheritance rights, and other sources of wealth.

Older Couples Also Benefit

Anyone getting married can benefit from a prenuptial agreement, including older couples. When older couples wed, it is often their second or third marriage. Unfortunately, the divorce rate for these marriages is much higher than that of first marriages. A prenuptial agreement can make the divorce process much easier if the marriage does not work out. Additionally, older couples have also had more time to accumulate wealth, and a prenup can protect it.

Determine the Division of Marital Assets

The division of marital assets is one of the most complex issues during divorce. A prenup can outline how you will divide them in the event your marriage does not work out. For example, if you are a business owner and plan on operating it after you get married, a portion of the company will be considered a marital asset if you get a divorce. A prenup can stipulate that you retain all rights to the business after the marriage and that your spouse does not have a claim to any portion of it.

Resolve Spousal Maintenance Issues

A Houston family law attorney will tell you that you cannot include any provisions pertaining to child support in a prenuptial agreement. This is because the child has a right to support, and parents cannot waive that right on their behalf. However, a prenuptial agreement can resolve issues regarding spousal maintenance, commonly referred to as alimony. 

This is of particular importance when one spouse is planning to leave the workforce to maintain the home and take care of the children. Due to the fact that the stay-at-home spouse may have a reduced earning capacity post-divorce, a prenup can provide them with the spousal support they need.

Protect Against Your Spouse’s Debt

One of the main purposes of a prenuptial agreement is to determine how assets will be divided during divorce. However, these contracts can also protect you from being liable for your spouse’s debt. On average, American households carry approximately $140,000 in debt. If your soon-to-be spouse carries a lot of debt, or they will in the future, a prenup can protect you from it. For example, if you know your spouse is going to go to school during the marriage and will use student loans, a prenup can ensure you will not have to pay that debt post-divorce.

Clarify Financial Expectations

When drafting a prenup, you and your partner will have to disclose financial information, such as the assets and debt you currently have. While this process may not sound very romantic, that is not the case. In fact, a prenup can foster open communication and help you and your partner have a better understanding of the other’s obligations, financial goals, and responsibilities. If you can address these financial issues before the wedding, it can help you reduce misunderstandings and conflicts about money during the marriage.

Protecting Beneficiaries

It is not uncommon today for people to have children from another relationship when they marry. In these instances, a prenup can be especially valuable. A prenuptial agreement can define how assets will be distributed in the event of divorce or death, and provide for each of your beneficiaries, including children from a previous relationship. This can provide both of you with peace of mind and help you avoid future disagreements about financial support or inheritances.

Making the Marriage About the Relationship

If you have a great deal more wealth than your partner, a prenuptial agreement can make sure your property and assets are protected. It will also give you the peace of mind that your partner is marrying you for love, and not for what you own.

Providing an Easy Way Out

It is a sad but true fact that many people remain in unhappy marriages because they do not think they can financially support themselves. Or, one spouse may have become accustomed to a certain standard of living during the marriage and do not want to give that up. A prenuptial agreement can give both parties the confidence to leave a marriage in the event it ever becomes unhealthy.

Our Family Law Attorney in Houston Can Draft Your Agreement

A prenup can provide you with a great deal of protection, but they must be drafted properly in order for them to be enforced. At Integrity Law Group, PLLC, our Houston family law attorney can draft a contract that will protect your best interests now and in the future. Call us today at (832) 263-1828, or fill out our online form to schedule a consultation and learn more.

Estate Planning 101: Answering the Top Five Questions

You have likely heard about estate planning and the importance of it. Considering that estate planning encompasses wills, powers of attorney, and thinking about the probate process, it is not always straightforward. If you have thought about planning for your estate, you likely have many questions. Below, our Houston estate planning lawyer outlines the five most common questions we hear and the answers to them.

When Should You Create an Estate Plan?

Planning your estate is a task that is easy to keep putting off. Many people think there is not an urgent need to plan their estate, particularly if they do not have a family or have not amassed a substantial amount of wealth. However, this is not the case. You should consider planning your estate as important as planning for retirement, health care, and your finances.

All adults can benefit immensely from a comprehensive estate plan. Of course, if you have a lot of assets, it is even more important to have an estate plan in place. Likewise, if you have minor children, you should create an estate plan that names the guardian you would like to raise and care for them. Still, having substantial property or a family is certainly not a prerequisite for creating an estate plan. If you are an adult, you need an estate plan, regardless of your income, assets, or age.

Should You Share Details of Your Estate Plan With Loved Ones?

Whether you share the details of your estate plan with your loved ones or not is a personal decision. It can be uncomfortable to discuss your final wishes with your family members, and they may not even be open to hearing about it. Still, discussing your estate plan with loved ones does have many benefits.

For example, if there are people you think will be unhappy with your estate plan, now may be the time for transparency. You can explain your reasoning for the decisions you made, and it may even help your beneficiaries avoid challenges and contests to your will or other parts of your estate plan in the future. Instead, you can deal with any disputes directly now.

What Tools Should You Include in Your Estate Plan?

It is no small task to plan your estate, as it needs to be specific to you and your own personal situation. Due to the fact that everyone has different circumstances and, therefore, they require a unique estate plan, there are no real requirements to include. Still, there are some elements that are commonly included in estate plans. These include:

  • Your last will and testament, which is often the foundation of many estate plans,
  • Trusts, such as testamentary trusts, asset protection trusts, Crummey trusts, special needs trusts, charitable trusts, and more,
  • Funeral arrangements,
  • Retirement planning,
  • Medicaid and Medicare planning, and 
  • Advanced health directives, such as health care power of attorney and medical power of attorney

You may not need to include all of the above elements in your estate plan. You may also give some elements more importance and precedence than others, depending on your own personal situation. For example, if you have health concerns, you should include provisions in the event that you become incapacitated. If your assets largely include real estate properties, on the other hand, you may be more concerned about creating trusts that will protect those assets now and in the future. You should always speak to a Houston estate planning lawyer who can advise on the elements that may be most important for your plan.

Should You Include a Durable Power of Attorney in Your Estate Plan?

A durable power of attorney gives another person the legal authority to make decisions for you in the event that you cannot make them for yourself. If you do not include a durable power of attorney in your estate plan, the court will appoint one for you if you become incapacitated. The court may not appoint someone that you would have chosen, and the court process can be more costly than simply drafting a durable power of attorney.

When choosing a power of attorney, it is critical that you name someone you trust implicitly. They will have your safety and well-being in their hands, and you want to make sure they understand and will carry out your wishes. Being someone’s power of attorney can also be very stressful, as it is a huge responsibility. Speak to the person you are considering appointing to make sure that they are willing and able to take on the task so you can inform them about your wishes.

How Often Should You Review Your Estate Plan?

Unfortunately, drafting an estate plan is not a ‘set-it-and-forget-it’ matter. The only constant in life is change, and you will need to adjust your plan accordingly from time to time. Any time there is a major life event, such as a birth or divorce, you will want to review your estate plan. For example, if you have left assets to your daughter and her husband and they divorce, you may want to change your will to disinherit your son-in-law. Or, if a new baby is born, you may want to create a trust so you can leave certain assets to them.

Even when there are no major life events, you should still review your estate plan fairly regularly. You can review it annually or semi-annually at the same time you review your financial plan. For estate planning purposes specifically, you should review your plan at least every three to five years.

Our Estate Planning Lawyer in Houston Can Answer Your Questions

If you are thinking about planning your estate, you likely have many questions. At Integrity Law Group, PLLC, our Houston estate planning lawyer can answer them and help you draft a plan that will protect you and your loved ones. Call us now at (832) 280-9576 or contact us online to request a consultation and obtain the legal advice you need.

The Impact of Divorce on Your Last Will and Testament

Under state law in Texas, a divorce or annulment of a marriage will revoke any portion of a will that involves a former spouse. For example, if you left everything to your spouse and did not change your will after you divorce, those provisions would be revoked. Your assets would then be distributed according to the intestacy laws in the state. Although your spouse will not receive any of your property if you pass away, it is still of critical importance that you update your will after divorce.

Reasons to Update Your Will After Divorce

There are many reasons to update your will after divorce. They include:

  • Protect your child’s inheritance: Reviewing and updating your will after ending your marriage will allow you to make sure that any inheritance left to your children is protected. If your children are still minors, you may want to consider establishing a trust for your children, which may require you to appoint a new trustee.
  • Appoint a new executor: It is not uncommon for spouses to name each other as executors of their will and estate. Also review any trusts you have created, as you may have to appoint new trustees, as well.
  • Add or remove beneficiaries: One of the main purposes of a will is to provide for your beneficiaries in the event that you pass away. After a divorce, you may want to add beneficiaries or remove them, particularly if you left property to people on your former spouse’s side of the family.
  • Prevent challenges to the will: If you do not update your will after divorce, it may be easier for your former spouse or other family members to challenge it. Updating your will ensures that you can clearly outline your intentions and preferences and minimize the chance of challenges and other disputes arising.

The above are just a few reasons to review your will after your divorce. A lawyer can review the document with you and advise of the necessary changes to make to ensure your best interests are protected.

Other Estate Planning Tools to Review After Divorce

Your will is not the only estate planning tool you should update after your divorce. Other important documents to review and change, if needed, include:

  • Beneficiary designations on policies and accounts: If you listed your former spouse as a beneficiary on an insurance policy or retirement account, they may still receive funds if you pass away, as the law does nothing to change that. As such, it is critical that you review these accounts and policies and make the necessary changes to reflect your current wishes.
  • Advance directives and powers of attorney: If your former spouse is appointed as your power of attorney, or you named them as your agent to make healthcare decisions on your behalf, it is important to change these documents so you can choose another person to have this authority. Always make sure you choose a person you trust in your advance directive or as your power of attorney, which is likely no longer your former spouse.
  • Tax considerations: A divorce can have tax implications for your estate, as well as any beneficiaries you have appointed. It is important to speak to an experienced attorney who can advise on your estate and any tax implications you may not have known about or have not considered.

How to Update Your Will After Divorce in Texas

While you may know that it is important to update your will after divorce, you may not know how to do it. The main steps involved are as follows:

  • Review your existing will: Of course, to know which changes you need to make to your existing will, you first have to review it. Read through your current will carefully and identify any provisions you would like to change. Any terms involving your former spouse will need to be changed, but now is a good time to determine if you need to make any other changes, as well.
  • Contact an experienced family law attorney: A family law attorney can guide you through the divorce process and help you obtain the fair settlement you deserve. After your divorce, however, an attorney can also help you navigate the process of making changes to or updating your will to make sure it complies with state law and is enforceable.
  • Create a new will or codicil: A lawyer can assist you with drafting a new will or creating a codicil. A codicil is an amendment to your current will. Regardless of whether you creating an entirely new will or making amendments, the document should distinctly state the changes you want to make. A lawyer will also inform you of how to execute the will so it complies with state law. For example, you may have to sign your will in the presence of two witnesses in order for it to be enforceable.
  • Store your new will in a safe place: You should keep your will in a secure place, such as at your attorney’s office or in a safety deposit box. Your lawyer can advise on whether you should destroy previous versions of your will. Sometimes, this is beneficial, but if there is any question of the validity of a new will, it can be useful to retain previous versions. Working closely with an attorney can ensure the validity of a new will is not brought into question.

Our Estate Planning Lawyer in Houston Can Help Update Your Will

If you have recently gotten a divorce, you should not overlook the importance of updating your will. It is important to ensure your wishes are fulfilled, and our Houston estate planning lawyer at Integrity Law Group can help you navigate the process. Our attorney has the necessary experience to make sure your will is valid and executed properly so it is not subject to challenges in the future. Call us now at (832) 280-9576 or fill out our online form to schedule a consultation and learn more about how we can help.

A Step-by-Step Guide to Real Estate Transactions in Texas

There are many steps in real estate transactions in Texas. The steps you take will depend on the type of transaction you are entering into. Purchasing and selling homes are some of the most common types of transactions in Texas, and the process of leasing or renting is very similar. Below, one of our Texas real estate attorneys outlines the steps of selling and buying a home and how to get the help you need throughout the transaction.

Contact a Texas Real Estate Lawyer

Selling or buying a home is a complicated process that involves a great deal of negotiation and legal documentation. You are not required to work with a Texas real estate lawyer, but legal assistance will make the process much easier for you. A lawyer can help you navigate the process, draft and review important contracts, prepare and submit all documents, ensure you do not miss deadlines, and protect your best interests at all times throughout the transaction.

Find a Lender and Real Estate Agent

Finding a lender or real estate agent in today’s world has become easier because the Internet has made it so easy to find countless options. However, the sheer number of options you have has also made it more difficult to find the right real estate agent or lender for you. You must compare several lenders and real estate agents. Compare their experience, their rates, fees, or commission, and more. Also remember you do not have to rely on the Internet. You can ask family and friends and use trusted resources, such as Texas Realtors, to find someone you can trust.

List or Find Your Home

Your real estate agent will use resources such as the Multiple Listing Service (MLS) and other online platforms to help you find a home or list your current residence for sale. If you are purchasing, your real estate agent will also research the current conditions of the market and location, the neighborhoods you are considering, and any must-haves you would like in the home.

A real estate agent can also help you determine a reasonable price for your home if you are selling. Still, it is important to obtain a recent appraisal so you understand what the property is worth. You may also need additional time to repair or replace certain conditions prior to the sale. You will also have to consider staging your home, and regardless of whether you are buying or selling, you will have to make time for showings.

Sign the Contract and Open Escrow

You will have to consider many options about the contract. These include contingencies, home renovations,  and the overall timeline. It is critical that you consider these factors before signing the final contract. You may also have to negotiate for certain repairs to be made before the move-in date. Negotiations can take time, so you should always make sure you are communicating well with your agent.

If you are purchasing a home, you will also have to open an escrow account. Escrow is an important process, but it is also one that is complex and largely misunderstood. An escrow account assures each party that the sale will go through because the funds are being held safely. Escrow accounts are typically used for good faith money deposits, taxes, and homeowners insurance.

Complete Repairs or Inspections

Home inspections are also an important part of the process for buyers. You should hire an inspector who can analyze all conditions on the property and inform you of any issues they find. If there are issues present, you can negotiate with the seller to make the necessary repairs. Or, you may choose to handle the repairs yourself in exchange for an adjustment in the price.

Meet With the Title Agent

The role of the title agent is often overlooked because they are only a small part of the process. Still, they are also important. Title agents conduct a search on the title of the property. There are many encumbrances that can be on a property, including utilities, unpaid taxes, and other fees and liens. The title agent will find any of these issues and make sure no stone is left unturned. After determining that the property is free of these encumbrances, they will issue a title commitment that ensures the home is marketable and that it can be protected by title insurance.

Submit Necessary Paperwork

You will have to review a lot of paperwork and send information to your real estate agent, as well as the lender and title company. To avoid unnecessary delays, you should respond promptly to these requests.

Deposit Closing Funds

The title agent or company will also provide the closing disclosure, which outlines all of the closing costs. This can be a confusing part of the process, so make sure to speak to your real estate agent or lawyer about this documentation. After reviewing the disclosure, you should wire the funds to the title company before closing.

Review and Sign Closing Paperwork

After the title work is complete and the lender has approved the deal to close, you will meet with a closing agent from the title company. There is a lot of paperwork to review and sign, so it is important to remain patient and not rush through the process.

Receive Your Keys or Funds

After all of the paperwork has been signed and you have done your due diligence, the keys are yours, and it is time to move into your new home. If you have sold your home, you can receive your funds and take the next necessary steps.

Call Our Real Estate Lawyers in Texas Today

The real estate process can become complex, and every step within it is important. At Integrity Law Group, our Texas real estate lawyers can provide the legal advice you need and make sure the process is as smooth as possible for you. Call us now at (832) 521-4201 or contact us online to schedule a consultation and learn more about how we can help with your case.

Securing Your Financial Future: Strategies for Protecting Your Assets During Divorce

You did not get married thinking it was going to end in divorce. Sadly, the divorce rate in the country shows that divorce is all too common. Ending your marriage will bring with it mental, psychological, and emotional hardships. Still, there are also many financial matters you must consider, as well. Our family lawyers know how to protect your property from divorce proceedings, even if your case seems extremely complex. Below are just a few ways to protect your assets during divorce.

Identify Separate and Community Property

If you know that divorce is inevitable, you should start creating a complete list of property owned by you, your spouse, or jointly. Separate property includes assets either of you owned before the marriage, while community property is considered jointly owned by both parties. Common examples of community property include:

  • Vehicles
  • Shared investment accounts
  • Bank accounts
  • The marital home
  • Retirement accounts
  • Real estate, such as an investment property
  • Personal property, including furniture
  • Equity or proceeds from a business
  • Pensions
  • Cryptocurrency

Remember that when creating a list of inventory, you must include all debts and liabilities, as well.

Determine the Value of Your Assets

After you have written a comprehensive inventory of your separate and marital assets, you then need to determine the value of the property. When resolving property division issues, a judge will consider the income level of each spouse before and after the marriage, as well as the amount of separate and community property owned by the couple. To obtain the most accurate valuation, it is important to speak to a professional.

Open Separate Accounts

As soon as you know you are getting a divorce, you should also open separate accounts. Open a separate bank account, apply for a credit card that is in your name only, and separate your personal property as much as possible. If you have a joint bank account or credit card with your spouse, try to remove your name from it as soon as possible. Gather the financial documents for all separate and joint accounts and transactions, as your attorney and judge will want to review them.

Consider Tax Implications

Taxes are commonly overlooked in divorce cases, but they are one of the most important things to consider. While the tax law on alimony changed several years ago, there are other implications to think about. 

For example, the tax law regarding retirement accounts still applies, and so when dividing this property, you must know how it will affect you. You do not want to agree to accept a taxable retirement account while your spouse receives one that will not be impacted by taxes. It is best to work with an asset protection lawyer who can advise on the tax implications of dividing certain types of property.

Change Your Will

State law will automatically revoke your spouse as a beneficiary in your will after you get a divorce. Still, it is important to review your last will and testament to revoke your spouse on your own and to confirm that all previous versions of your will are invalid. You may also want to change certain terms so your children or other trusted individuals receive what your spouse once would have. Of course, if you have a joint will with your spouse, you need to ensure you have one of your own after divorce.

Use a Trust to Protect Assets

A trust is a legal document that can also protect assets during a divorce. To shield the trust assets from being subject to division, the document must be drafted prior to the marriage. Still, any assets placed within it at that point can be classified as separate, and you can retain them after your divorce is final.

There are many different types of trusts that can protect your assets during divorce. A Domestic Asset Protection Trust (DAPT) is an irrevocable trust that can provide the protection you need. Some individuals choose to open an offshore trust, as this provides the highest level of protection. You should always speak to an asset protection lawyer who can advise on the best trust to use for your situation.

Draft a Prenuptial or Postnuptial Agreement

Most couples should have a prenuptial agreement prior to getting married. A prenuptial agreement mainly outlines financial provisions in the event you get divorced. A prenup can outline which property is considered separate and therefore protected from being divided during divorce. A prenup can also stipulate terms surrounding alimony and how income will be used during the marriage.

A postnuptial agreement can include all of the same terms as a prenuptial agreement. The only difference between the two is that a postnuptial agreement is drafted after the marriage. There are many reasons couples draft postnuptial agreements. For example, you may start a business after you get married. To prevent it from being divided during a divorce, you can draft a postnuptial agreement that classifies it as separate property.

Keep Inheritances Separate

Under Texas law, inheritances and gifts are generally considered separate property and, therefore, will not be divided during the divorce process. There is a large caveat to the law, though. If you commingle the inheritance with marital property, it will no longer be considered separate. For example, you may place your inheritance in a joint bank account you hold with your spouse. There would then be no way to determine which funds are from the inheritance and which are marital property. The entire account would be divided according to the state’s community property laws.

Our Family Lawyers in Houston Can Protect Your Assets

At Integrity Law Group, PLLC, our Houston family lawyers have the knowledge about real estate and business law to protect what is most important to you in the event that you get a divorce. Call us now at (832) 280-9576, contact us online, or email us to schedule a consultation with one of our skilled attorneys and to learn more about how we can assist with your case.

Debunking the Top Five Misconceptions About Estate Planning

There are many reasons people put off estate planning. Some people simply think the topic is too uncomfortable to talk about. Others are hesitant to embark on the process because of the many misconceptions and myths that are out there about estate planning. While some of these misconceptions sound reasonable, others are clearly untrue once you stop and really consider them.

Our Houston estate planning attorneys know the many reasons people put off estate planning for as long as possible. However, we also know how important it is for everyone to have an estate plan that protects them and their family for years to come. It is for this reason we have debunked the top five misconceptions we hear about estate planning so you understand the truth behind them.

MYTH: Only Certain People Need an Estate Plan

Perhaps the biggest misconception regarding estate planning is that only certain people need one. Some people think that only wealthy people with huge estates need to plan for them. Others believe that people only need an estate plan once they start to get older. 

The truth is, though, no one can predict the future and know when they will pass away. For this reason, everyone over the age of 18 years old should have an estate plan in place. An estate plan can make it easier for family members after a loved one passes away. It can allow them to avoid probate, and regardless of the assets within an estate, it also helps beneficiaries receive them sooner.

Tying into this myth is that only wealthy people need to have an estate plan. It is true that wealthy individuals will have more complex estate plans, but it is still important for individuals with smaller estates to have a plan in place. Anyone with a bank account, vehicle, or any other asset must have an estate plan. Without one, those assets can be tied up in the probate courts for months or years.

MYTH: Your Estate Plan Only Matters After You Pass Away

Some people do not think their estate plan will directly affect them. This misconception has largely been perpetuated by movies and television shows that depict family members finding a dusty copy of a will after someone has passed away. However, your estate plan could play an important role while you are still alive.

For example, if you create a living trust, it can become effective before you pass away. You can place property into the trust, and your beneficiaries can access the property once they reach a certain age or meet other milestones. Additionally, an estate plan can also include an advanced directive, which outlines your preferences for medical care in the event that you cannot make these decisions on your own. These are just two ways an estate plan can impact you while you are still alive, so it is important to create one as soon as possible.

MYTH: I Do Not Need an Estate Plan Because My Spouse Will Receive Everything

Without a will in place, your estate is subject to the intestate succession laws of the state. These laws do not necessarily allow your spouse to receive all of your property if they survive your death. 

For example, if you are in the difficult situation of wanting to disinherit your adult children, you must create a will that stipulates this. Otherwise, if you and your spouse had children together, they will automatically receive a portion of your estate. Your spouse will inherit all community property and 1/3 of your separate personal property. Your children will inherit everything else. If you have children, but they are not the children of your spouse, they will receive half of your community property.

If you have specific wishes, you must draft a will and use other estate planning tools to make sure they are fulfilled. When you do not, the state will determine how your estate is divided, which may not fall in line with your preferences.

MYTH: A Will is All You Need in an Estate Plan

It is true that wills form the foundations of many strong estate plans. It is also a fact that for some people, a will may be all they need. However, this is not true for everyone. There are many tools available for estate plans, and it is critical to speak to an attorney about the ones that are right for you.

For example, if you have very specific wishes for your end-of-life medical care, you may want to include an advanced directive in your estate plan. Or, if you have certain assets you want to shield from the probate process, a trust is a good tool that can help with that. If you are a business owner, you may want to create a succession plan to allow the transfer of ownership to proceed more smoothly. An attorney can examine your unique circumstances and advise on the tools that should be included in your plan.

MYTH: Drafting an Estate Plan is a ‘One and Done’ Process

Many people think that once they have created an estate plan, they can set it aside and never think about it again. This is simply not true. Estate plans need regular updating, and the documents within them are living documents and need to be changed whenever there is a major life change. Any time there is a birth, death, marriage, or other major change in your life, it is important to review your estate plan and update it when necessary. This is the only way to ensure your estate plan includes everything it should.

Call Our Estate Planning Lawyers in Houston Today

At Integrity Law Group, PLLC, our Houston estate planning lawyers can bust all the misconceptions about the process so you and your family are prepped for the future. Call us today at (832) 521-4201 or fill out our online form to schedule a consultation with one of our experienced attorneys and to learn more about how we can help with your case.

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