News and Opinion Blog

Business Solutions

Tue, 17 Apr 2012 10:39:43 0200

Question: I have started a new business using a “d/b/a.” I have not filed anything with the Secretary of State. I would like to protect myself from personal liability. Does the “d/b/a” provide me sufficient personal protection in the event of a lawsuit or dispute?

Answer: A “d/b/a” or “doing business as” is a sole proprietorship. As a sole proprietorship, you are operating your “business” individually and have no protection from personal liability. Filing the assumed name affidavit in the county where you are located does not remove any of your personal liability from the business.

However, there are ways to protect yourself to a certain degree in the event of a lawsuit or dispute related to your business. One alternative is forming an entity such as a limited partnership, corporation or limited liability company instead of a sole proprietorship. If you would rather not form an entity, appropriate levels of insurance coverage depending on your business and activities can cover certain liability incurred. You can even protect your additional assets by increasing the value and equity of exempt property such as your homestead.

-Philip J. Hundl, Shareholder of Wadler, Perches, Hundl & Kerlick

Attorney’s note: The information in this column is not intended as legal advice but to provide a general understanding of the law.

Emergency Intervention in Probate

Wed, 4 Apr 2012 11:25:01 0200

Question: A close friend recently passed away and the family is having difficulty paying the funeral expenses. The decedent had a bank account with modest funds. However, there is no beneficiary designation on that account. The family needs the funds to pay the funeral expenses. We were told that hiring a lawyer to open an administration would cost more than the funds in the account and would take a long time. Is there another option?

Answer: Yes, there is another option. The Texas Probate Code offers persons in these situations the alternative of filing an application for emergency intervention. An emergency intervention order issued by a court can order funds held by an employer, an individual, or a financial institution, to be paid directly to the funeral home for burial expenses and to an attorney for fees and court costs not to exceed $5,000. Also, the order can allow for the protection and storage of the decedent’s personal property that may be located in rental accommodations if needed.

An application for emergency intervention would need to be filed no later than the 90th day after the date of death, and only if no other application for any type of administration has been filed.

The application can be filed even if the decedent has a Will. The ultimate goal with the application for emergency intervention is to get things taken care of that cannot wait for an administration of the decedent’s estate. In some cases, an emergency intervention order may be needed before funeral and burial proceedings can take place.

The power given to the applicant in the order for emergency intervention expires 90 days after the order was issued, or when a personal representative for the decedent’s estate is designated, whichever comes first. If a personal representative is not appointed, a person in possession of the decedent’s personal property may either release property to the decedent’s heirs or dispose of the property.

-Philip J. Hundl, Shareholder of Wadler, Perches, Hundl & Kerlick

Property Tax Exemptions

Fri, 23 Mar 2012 10:20:30 0200

Question: What are some of the property tax exemptions available and how do I apply for those exemptions?

Answer: A property tax exemption will reduce the taxable value of your real property, and therefore, lower the amount of tax you will have to pay. There are several exemptions that may be available to you, if you qualify. The residence homestead exemption is available for all home owners on their residence if they lived there on January 1st of the tax year. In addition to the standard homestead exemption, the 65 years of age or older exemption may also be available, if you are old enough. Also, a disabled homestead exemption may be available, if you cannot engage in gainful work because of a physical or mental disability or you are 55 years old and blind and cannot engage in your previous work because of the blindness. To qualify, you must meet the Social Security definition for disabled. Further, a disabled veteran or survivor exemption is available for veterans who were disabled while serving with the U.S. armed forces or the surviving spouse or child (under 18 years of age and unmarried) of a disabled veteran or of a member of the armed forces who was killed while on active duty. The disabled veteran or survivor exemption can be taken on any property in Texas, not just the homestead. Regarding all of these exemptions, I suggest you contact your local county appraisal district for the appropriate forms to file and what documents they require to prove your eligibility.

-Philip J. Hundl, Shareholder of Wadler, Perches, Hundl & Kerlick

Pipeline Condemnation Questions: Can They Just Take My Land?

Fri, 4 Nov 2011 15:15:00 0200

Texas landholders have legal rights when negotiating and responding to pipeline condemnation, but prompt and decisive action is necessary.