Pratt & Thomas, PLLC

12/07/2020

12/07/2020

01/01/2013

WHAT IS THE DIFFERENCE BETWEEN COMMUNITY PROPERTY AND SEPARATE PROPERTY?

Texas is a community property state, which means that when you are married, most property acquired during the marriage is owned jointly by both spouses and is divided equally upon divorce, annulment, or death. Without specific evidence that says otherwise, property acquired during marriage is presumed to be jointly owned by both spouses.

Separate property of a married person includes: (1) all property owned by the person before marriage; (2) all property acquired by the person after marriage by gift, bequest, devise, or descent; and (3) the rents, issues, and profits of all such property. Thus, generally speaking, the property that a spouse brings into the marriage and receives by gift or inheritance during the marriage is separate property.

For more information regarding the legal implications and effects of community property and separate property in a bankruptcy, probate, or divorce, do not hesitate to contact us.

12/26/2012

WHO QUALIFIES FOR CHAPTER 7 BANKRUPTCY?

Before you can file for Chapter 7 Bankruptcy, you must financially qualify by demonstrating that you do not have the financial ability to pay your obligations. This is evidenced typically through the last six months of your pay stubs or other evidence of income from the date you file. You must also take a pre-filing Debtor Education Course. Generally, this counseling can be done via the internet from the privacy of your own home and usually takes approximately 40 minutes to complete. Once completed, a certificate is issued that must be filed with the Chapter 7 Petition.

12/19/2012

WHAT DOCUMENTS DO I NEED TO FORM A NON-PROFIT ENTITY?

Formation of Corporation – A Certificate of Formation must be filed with Texas Secretary of State. The Certificate of Formation will need to include the following information: entity name; name and address of the registered agent who will receive service of process for the corporation; office address; management structure; names and address of the initial board of directors; statement as to whether there will be members or there will not be members; purpose of the organization; and a statement regarding how assets will be distributed upon dissolution of the corporation.

Filing of SS-4 Form – The SS-4 Form will need to be filed with the IRS to obtain an Employer Identification Number (EIN) for the entity.

Power of Attorney Form 2848 – A Power of Attorney Form will need to be submitted to the IRS if someone other than the non-profit corporation will be filing for tax exempt status on behalf of the non-profit entity.

Bylaws – The bylaws govern the operation of the organization. The bylaws should include the following: the description of the roles of the officers; the process for nominating and electing officers and directors; organization of members if the organization has members; standards and process for removing members, officers, and directors; notice and quorum requirements for meetings of directors and members; establishment and power of committees, if any, and the operation and management of committee meetings; indemnification and limitation of liability of officers and directors; and establishment of the organization’s tax or fiscal year.

Conflict of Interest Policy – The IRS requires a non-profit entity to submit a conflict of interest policy as a requirement for receiving tax-exempt status from the IRS.

IRS Form 1023 or Form 1024 – These applications should be filed with the IRS to obtain federal tax-exempt status. Form 1023 is should be filed by public charities or private foundations. Form 1024 should be filed by social welfare organizations, civic leagues, business leagues, and social clubs.

Texas Form AP-204 – This application should be filed with the State of Texas to obtain exemption form sales tax and franchise tax.

If you have any other questions regarding the documents needed to form a non-profit entity, please do not hesitate to contact Pratt & Thomas, PLLC. We would be glad to assist you.

12/11/2012

WHAT HAPPENS IF I DIE WITHOUT A WILL?

If you do not have a will, the State of Texas will distribute your property as follows:

Single person without children: All of your estate will be divided equally between your parents. If your parents pass before you do, then your estate will be divided equally between your brothers and sisters.

Single person with children: Your estate is divided equally between your children.

Married without children: Your personal property (not real estate) will go to your surviving spouse. One half of your real property will go to your spouse and the other half of your real property will go to your parents or if they predecease you, to your brothers and sisters. If you do not have parents or brothers and sisters at the time of your death, your spouse will get your entire estate, both personal property and real property.

Married with children: One third of your personal property will go to your spouse and two thirds of your personal property will go to your children. Your spouse will get a life estate (a right to the use of the property during their lifetime without ownership rights) in one third of the real property. All ownership rights in the real property will be given to your children. However, your children will not be able to sell the one third of the real property in which your spouse has a life estate until after the death of your spouse.

To avoid the expense to your estate of having your heirs declared by the state, you need to take the time to write the will that is tailored to what you want. In the long run, consulting with the attorneys at Pratt & Thomas, PLLC will be the safest and most cost effective plan for both you and your family.

12/03/2012

WHAT ARE SOME REQUIREMENTS FOR OBTAINING AN UNCONTESTED DIVORCE?

At least one spouse from the marriage must have lived in Texas for the last six months. Additionally, the person filing the divorce papers must be a resident of the county for 90 days prior to filing in that county.

You must wait at least 60 days after the Original Petition for Divorce is filed before finalizing the divorce.

If there are children of the marriage to which one parent will be the primary custodian, child support is mandatory. You cannot opt out of child support, even in an uncontested divorce.

Once an answer is filed by your spouse, the divorce moves from an uncontested matter to a contested matter. This can result in a difference of fees and representation.

If you have any other questions regarding requirements of obtaining an uncontested divorce, please do not hesitate to contact us.