Blog
Articles and updates from our family of firms on tax, probate, business, and related topics.
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Taxation of Variable Prepaid Forward Contracts
Do you own a company and want to sell to de-risk your holdings but don’t want to pay tax now? And when you do sell, do you still want lower capital gains rates? That’s the most common goal for those considering tax planning. Capital gains rates are lower than ordinary income rates. Tax planning focuses…
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Navigating the Complexities of Co-Guardianship Arrangements
Co-guardianships are complex arrangements that require careful management, especially when parents share responsibility for an incapacitated ward. Such arrangements involve a delicate balance of rights and responsibilities. However, disputes can arise, leading one parent to seek clarification and enforcement of the co-guardianship order, while the other parent proposes specific possession schedules. The In re Guardianship
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Limiting IRS Access to Your CPA & Tax Attorney Records
A core principle of U.S. law and a foundation of our legal system is the presumption of innocence. The burden of proof lies with the accuser, not the accused. This underpins the right against self-incrimination and the right to legal counsel to mount a vigorous defense. However, this framework unravels if the accuser can access…
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Can a Will be Probated After the Statute of Limitations Has Expired?
Texas law restricts probating wills more than four years after the testator’s death. However, there can be exceptions that would allow late probate if the applicant shows reasonable diligence and a legitimate reason to do so. The Marshall v. Estate of Freeman, No. 03-20-00449-CV (Tex. App. – Austin [3rd Dist.] 2022) case highlights how courts
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Does E-Filing Change Late Tax Filing Penalties?
Our tax law imposes penalties on taxpayers who fail to file tax returns or pay taxes on time, unless the taxpayer can show “reasonable cause” for the delay. In United States v. Boyle, the Supreme Court established a bright-line rule that reliance on an accountant or agent does not constitute “reasonable cause.” There are nuances…
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Can an Unsigned Handwritten Document Count as a Will?
If someone dies in Texas and they left a handwritten written document that gives away their property on death, can that document be a valid will? What if the person did not sign the will? The answer is often, “yes,” as Texas law allows for handwritten wills. The courts will often admit the wills even
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Does Filing a Motion Count as a Will Contest in Texas?
Probate litigation often involves various motions filed by the parties. These include motions related to discovery requests, such as motions to compel and motions for protective orders. There are also motions to turn over property of the estate or to compel accountings by the executor. One of the key challenges in probate cases is determining
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Court Clarifies Tax Treatment of Loyalty Programs
Programs involving third-party vendors providing rewards, like hotels, airlines, and fuel companies, can amass substantial value over time. The term “substantial” is an understatement. “Massive” is more fitting. The tax law for these arrangements is not clear as it touches on concepts like trust funds, accounting methods, and redemption deductions. Given the size of the…
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Forget the 5-Year Rule – Change Entity Classification Early
Many believe that once you elect an entity’s tax classification, you are locked into that choice for at least 5 years. Conventional wisdom says that the tax status cannot be changed within a 5-year or 60-month period. However, a recent IRS private letter ruling shows this is not necessarily the case. In PLR 202341001, the…
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When Is a No-Contest Clause Enforced in Texas?
A will can provide that if someone challenges the will, they are disinherited. This is referred to as a “no-contest” or “in terrorem” clause. Texas law allows for the enforcement of no-contest clauses in wills. No-contest clauses in wills are enforceable in Texas. However, Texas courts have enforced these clauses narrowly to avoid unwarranted forfeitures.