Blazier, Christensen, Browder & Virr, P.C.Blazier, Christensen, Browder & Virr, P.C. | Austin Business and Estate Planning Attorneys2026-10-23T06:11:46Zhttps://www.blazierlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1504762/2025/10/cropped-fav-icon-32x32.jpgOn Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[Could your will accidentally disinherit your grandchildren?]]>https://www.blazierlaw.com/?p=500072026-10-14T17:00:54Z2026-10-14T17:00:54ZWhen a child passes first
Picture this: three adult children stand to inherit equally under your will. Then one of them passes away before you, leaving behind two children of their own: your grandchildren. Their share must go somewhere, and the answer depends entirely on the distribution method written into your will. Two common methods are per stirpes and per capita, and the distinction between them is significant.
Per stirpes: Keeping it within the family
Per stirpes is a Latin term meaning "by the branch." Under this method, a deceased child's share passes directly to their children. Their parent's portion of the estate transfers down the family line, keeping the inheritance intact across generations.
Per capita: Only survivors share
Under Texas law, a per capita distribution divides the estate equally among individuals at the same degree of kinship. This usually applies to surviving children. Since grandchildren are at a different degree of kinship, they would not automatically receive a share.
However, your will must explicitly state this outcome. Without clear language, a court could interpret the distribution differently.
Why your will needs clear beneficiary instructions
In some cases, an estranged grandchild may be next in line. Under per stirpes, that grandchild still inherits their parent's full share of your estate. Personal relationships carry no legal weight in this determination.
Texas follows the line of descent strictly, and without specific language to exclude or redirect a beneficiary, the court distributes accordingly. However, Texas law permits testators to designate specific exclusions.
Other life changes that can affect your will
Major family changes can quietly create gaps in your will. A new grandchild, a family divorce or a falling out can all shift who stands to inherit. Reviewing the distribution language after any significant life event can help keep your will aligned with your intentions.
Protecting your grandchildren's inheritance
Many people assume their grandchildren have automatic protection, but a properly prepared will is essential to ensuring your wishes are carried out. Pull out your will and look for the words per stirpes or per capita. If the language is unclear or missing, that gap deserves attention. Without the right language in your will, that assumption may cost your grandchildren their inheritance.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[5 records to keep as a Texas power of attorney agent]]>https://www.blazierlaw.com/?p=499952026-10-07T10:00:08Z2026-10-12T09:59:44Z1. Receipts and invoices
Keep receipts, invoices, and canceled checks for expenses you pay with the principal’s funds. These records can show where the money went and why you spent it.
2. Account statements
Save bank, investment account, and credit card statements for accounts you manage. They can help document deposits, withdrawals, transfers, and balances. Keeping the principal’s financial activity separate from your own can also make transactions easier to document and explain.
3. Income records
Keep records of money received for the principal, such as Social Security benefits, pension payments, investment income, or rental payments.
4. Property and tax documents
Deeds, tax filings, appraisal records, and documents involving major property purchases, sales, or transfers can help show how you handled the principal’s property.
5. Records of important decisions
Keep notes and supporting documents for significant financial decisions, such as selling property, moving money between accounts, or paying a large expense on the principal’s behalf. These records can help explain what you did and why.
State law also recognizes electronic records if they can be retrieved and read or viewed later. Keeping backup copies can help prevent important information from being lost.
Keep records throughout your time as an agent
Under state law, you must keep your records until you deliver them to the principal, the principal releases you from that duty, or a court discharges you from the duty.
The principal may also demand an accounting, or a detailed report of how you handled their money and property. You generally have 60 days after the demand to provide the required information, although the principal may demand a longer or shorter period or a court may order one.
Keeping records as you act can make an accounting easier later. If you are unsure about your recordkeeping responsibilities, accounting requirements, or what you are allowed to do, legal guidance can help you understand the document and Texas law before questions or disputes arise.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[What tax records should you keep in case of an IRS audit?]]>https://www.blazierlaw.com/?p=499582026-09-09T02:21:42Z2026-09-15T02:21:12ZAn IRS audit can feel stressful, especially when you are unsure which paperwork you need to support your tax return. While figuring out which right documents depend on your tax situation, having them organized can make it easier to explain how you reported your income and expenses.
Here are the key records worth having on hand.
Tax returns and IRS correspondence
Start with copies of your federal tax returns, related schedules, amended returns, and IRS notices. Having the complete return alongside correspondence can help you connect an IRS question to the information you originally reported. The IRS also recommends keeping copies of filed returns for future reference.
Income records
Your income records should show where the money reported on your return came from, including:
W-2s, 1099s and K-1s
Invoices, sales records, and payment information for self-employment income
Bank statements and other records showing payments you received
These records can help you reconcile the income reported on your return with the transactions behind it.
Receipts and expense records
Receipts, invoices, canceled checks and account statements can support deductions claimed on your return. For each expense, keep enough information to show the amount, date and reason for the payment. If you claimed a tax credit that requires supporting information, preserve those as well.
Business and transaction records
For business owners, accounting records, payroll information, and records supporting business expenses can help substantiate the amounts reported on a return. Purchase and sale paperwork for property or other major assets also deserves attention because it can help establish your tax basis and any resulting gain or loss.
Organize your records before you need them
The length of time you should keep tax records depends on how long the IRS has to examine the return. For many returns, that period lasts three years, although certain situations require longer retention.If you receive an audit notice, reviewing your records with an attorney can help you determine which information supports your return and how to respond to the IRS.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[Does a power of attorney expire in Texas?]]>https://www.blazierlaw.com/?p=499492026-08-06T10:20:58Z2026-08-11T10:20:01ZWhen does a power of attorney end?
The length of your power of attorney will depend on both Texas law and the language in the document. It can end when any of the following occurs:
Death of the principal, because a power of attorney automatically ends at death
Revocation by the principal while they still have legal capacity
Completion of the purpose of a limited power of attorney, such as finishing a real estate transaction
A court's determination that the document is no longer valid
An agent becoming unable to serve when no successor agent is available
If your power of attorney ends, the person you chose can no longer make decisions under that document. Any future authority would need to come from another valid legal arrangement, if one is available.
Does a durable power of attorney expire?
If you are creating a durable power of attorney, it is easy to assume the word "durable" means it lasts forever. In Texas, it means something different.
A durable power of attorney remains effective if you become incapacitated. It can still end because of death, revocation, an expiration date, or a court order.
Know the limits of your power of attorney
Learning that a power of attorney does not last forever gives you a better understanding of what the document is designed to do. It can give someone the authority to act on your behalf, but only within the limits set by Texas law and the document itself.
As you consider your estate plan, that distinction can provide a clearer picture of where a power of attorney fits. It serves a specific purpose for a defined period of legal authority and works alongside other estate planning documents rather than replacing them.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[Texas power of attorney: Key benefits and risks]]>https://www.blazierlaw.com/?p=499482026-07-09T13:03:57Z2026-07-14T13:03:07ZWhat Is a Texas POA?
In Texas, a POA is a legal document that gives someone else authority to manage certain tasks for you. Depending on the type of power of attorney, your appointed “agent” may be able to manage your finances, sign contracts, sell real estate property, pay bills, or make important decisions on your behalf. POAs are commonly used in financial management, healthcare planning, incapacity planning, and business matters.
There are different types of POA in Texas, including limited POA, general POA, springing POA, durable POA, and medical power of attorney (MPOA). The type you choose will depend on your goals and the level of authority you want to grant.
What are the advantages of a POA?
One major benefit of Texas’ power of attorney is convenience. It allows a trusted person to step in and oversee important matters if the “principal” or owner of the POA is unavailable or unable to act. This can prevent delays in paying bills, managing property, or making time-sensitive decisions.
Another advantage is planning for incapacity. A Texas durable POA can remain effective even if the principal becomes incapacitated, which can help avoid the need for a court-appointed guardianship. Guardianship proceedings can not only be costly but also time-consuming and stressful for the family members.
A POA can also provide flexibility. The principal can customize the estate planning document to give broad or limited powers depending on their needs. For example, they may authorize the agent to manage banking matters but not real estate transactions.
What are the disadvantages of a POA?
Despite its benefits, a POA also carries risks. One concern is misuse of authority. Because the agent may have access to financial accounts or other sensitive matters, a dishonest agent could cause serious harm.
Another downside is that banks, hospitals, or other institutions may sometimes question or refuse the document if it is outdated, unclear, or not properly executed. This can create delays when the agent is trying to act quickly on the principal’s behalf. Because of these potential risks, choosing an agent should never be taken lightly.
How can you reduce the risks?
The best way to reduce risk is to draft the document carefully, choose the right agent whom you trust with your life and appoint a backup agent in case your first choice becomes unavailable. In Texas, it is wise to collaborate with a lawyer to make sure the POA complies with state law and clearly states the powers granted.
You should also keep your loved ones informed about the document and review the POA’s content regularly to ensure it still reflects all your needs and goals.
By taking time to weigh the pros and cons of a Texas POA, you can understand your options better and make informed decisions that can help you create the right type of POA for your circumstances, while also selecting a trustworthy agent that can honor your wishes for the future.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[What first-time homebuyers should know about sellers’ disclosures]]>https://www.blazierlaw.com/?p=499432026-06-09T10:59:40Z2026-06-12T10:59:10ZWhat is a seller’s disclosure?
A seller's disclosure is a document where the seller lists known issues with a property. In Texas, most sellers must complete a Seller's Disclosure Notice prior to closing. This form covers the home's structure, systems, and history.
For first-time homebuyers, this document carries more significance than you might initially realize. It gives you a written record of the property's condition before you commit your finances and your future to it.
Six red flags you should not ignore
Reading a seller's disclosure is one thing, but knowing what to look for is another. Not every issue listed in the document carries the same weight, and some can expose you to far greater costs than you anticipate. Here are six red flags to watch for as you review the disclosure:
Structural and foundation issues: Unexplained cracks, settling, or bowing walls can signal serious structural compromise that costs tens of thousands of dollars to remediate.
Water damage and mold: Past flooding, roof leaks, or plumbing issues can lead to toxic mold and wood rot if a professional did not handle the repairs properly.
Unpermitted renovations: Additions or electrical and plumbing changes made without permits can complicate your homeowners insurance and create liability issues when you sell.
Pests and termites: Wood-destroying insects can silently damage your home's framing, so check whether the property has a transferable pest control warranty.
Environmental hazards: Texas homes built before 1978 may contain lead-based paint, and other concerns including asbestos, radon gas, and nearby underground storage tanks.
Roof and system age: An aging roof or failing heating, ventilation, and air conditioning (HVAC) system can translate into significant repair costs shortly after you move in.
Each of these issues deserves careful consideration before you move forward. That is why having the right guidance at this stage can make all the difference.
Secure your family’s future home
Buying your first home is one of the most meaningful milestones you will ever reach. You deserve to approach it with clear eyes and full confidence. Taking the time to carefully review a seller's disclosure, asking the right questions, and seeking knowledgeable guidance along the way are all part of making a sound and well-informed decision. The more informed you are, the better positioned you will be to protect your family and your investment for years to come.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[How does a correspondence audit differ from a field audit?]]>https://www.blazierlaw.com/?p=499372026-05-11T16:08:49Z2026-05-14T16:08:08ZWhen the IRS reviews your tax return, the type of audit you face often shapes your experience. While the IRS operates across the country, including in Texas, federal rules guide the process. Most reviews fall into a few categories, but two of the most common are correspondence audits and field audits. Each follows a different process and may require a different level of effort from you.
What happens during a correspondence audit?
A correspondence audit usually starts with a formal IRS notice, such as Letter 525 or a CP2000. This type of review often focuses on a narrow issue instead of your entire return. For instance, the IRS may try to confirm income, credits or deductions that do not match its records.In many cases, you can handle the process by mail or through the IRS online portal. You gather your documents and send copies to support your position. As a result, you may not need to meet with an IRS agent in person.A correspondence audit often involves:
Responding to IRS notices within the stated deadline, often about 30 days
Providing copies of receipts, forms or other financial records
Addressing a small number of items on your tax return
This approach may feel more manageable since it limits direct contact. Still, clear and timely responses can help keep the process moving.
How does a field audit work?
A field audit usually involves a more detailed review of your finances. In this situation, an IRS agent visits your home, business or accountant’s office to review your records. Unlike a correspondence audit, a field audit may cover several areas of your return. In some cases, the agent may also review other tax years if issues arise.During a field audit, you often need to organize and present a wide range of original documents. The agent may also ask questions about your financial activity or business operations to better understand your return.A field audit often includes:
In person meetings with an IRS revenue agent
A broader review of income, expenses and financial records
Requests for more documents during the review
Because of its scope, a field audit may take more time and preparation than a mail based review.
Why the differences matter for you
The type of audit you receive can affect how much time and effort you spend on the process. A correspondence audit usually focuses on a narrow issue and relies on written communication. In contrast, a field audit often involves a deeper review and more direct interaction.Federal law, including Internal Revenue Code, allows the IRS to review records and gather information to check tax returns. At the same time, the Taxpayer Bill of Rights gives you certain protections, such as the right to seek representation during the process. How the IRS applies its authority may vary based on the type of audit.
Staying prepared for a review
No matter which type of audit you face, staying organized may help reduce stress. You might keep clear records, review IRS notices with care and respond within the required time frame to protect your options. Each tax dispute situation can differ, but understanding how these audits work may give you a clearer sense of what to expect.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[Can a power of attorney override business governance documents?]]>https://www.blazierlaw.com/?p=499292026-04-10T12:37:13Z2026-04-15T12:36:22ZYou may want a power of attorney to keep your business running if you cannot act. That step can bring peace of mind. You may also worry about giving up too much control. Texas law draws a clear line between your business rules and your power of attorney, which helps protect how your company operates.
How authority is prioritized under Texas law
Texas law separates business control from personal agency. The Texas Business Organizations Code (TBOC) governs how your company runs. Your bylaws, operating agreement or shareholder agreement set who can make decisions and control voting rights, management power and approval steps.Texas law governs your power of attorney primarily under the Texas Estates Code. However, when your agent acts in a business context, they must also comply with fiduciary duties under the TBOC. It lets your agent exercise only those rights you personally hold as an individual owner, not rights that belong to the business entity itself.Your agent can only use the rights you already have as an owner. If your governing documents limit your authority, those limits still apply to your agent. Clear and consistent documents reduce the risk of conflict.
Where your agent’s authority begins and ends
A Texas durable power of attorney can grant broad financial powers unless you limit those powers in the document. It helps to understand how this plays out in a business setting.Your agent may be able to:
Use your ownership rights tied to shares or membership interests
Access business accounts if you allow it
Take part in decisions you have the right to make
Your agent usually cannot:
Override board or manager authority set in your governing documents
Change those documents unless you clearly allow it
Violate the fiduciary duties they owe to you under Texas law, including duties of loyalty and care
Banks and other third parties in Texas may rely on a valid power of attorney, which makes careful drafting important and helps prevent actions you did not intend.
Protect control while planning ahead
You can plan for support without giving up control. Your power of attorney and your business documents should match. Clear boundaries can keep your agent from stepping into roles you want to reserve for others and thoughtful planning can help your business stay stable while your interests remain protected.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[S-Corp to C-Corp: Smart move before a business exit?]]>https://www.blazierlaw.com/?p=498822026-03-12T12:50:30Z2026-03-17T12:49:52ZWhy founders consider converting before an exit
In Austin’s fast-moving market, many startups begin as limited liability companies (LLC) or S-corporations. Those structures can reduce payroll taxes and simplify early operations. As the company grows, new goals emerge. Founders consider conversion for several reasons:
Venture capital firms usually prefer C-corporations.
Buyers may favor a traditional C-corporation structure.
Equity compensation plans tend to fit more smoothly within a C-corporation.
Each of these factors can affect what your company is worth and how a transaction unfolds. They also shape what you ultimately keep after taxes, which is why the decision should align with your broader growth strategy and long-term goals.
A conversion goes far beyond filing paperwork. It can alter the way you raise capital, structure ownership, and plan for future tax obligations, all of which influence how prepared your business is for a transition.
The tax issues you need to understand
A conversion from S-corporation to C-corporation can create both opportunity and risk.
First, QSBS rules under the Internal Revenue Service (IRS) allow eligible shareholders to exclude a significant amount of capital gains if they meet specific requirements, including a five-year holding period. That clock typically starts when the C-corporation stock is issued. If you convert too late, you may lose part of the benefit.
Second, built-in gains tax can apply if appreciated assets existed at the time of conversion and the company sells within a set period. That tax can reduce what flows through to shareholders and affect deal modeling.
Third, C-corporations face potential double taxation. The corporation pays tax on its income, and shareholders may pay tax again on dividends or certain distributions. In an asset sale, that structure can change what you ultimately receive.
Austin founders who plan an exit within three to five years should weigh these factors carefully. The right structure depends on your revenue growth, investor plans, and expected deal terms.
Planning ahead protects your exit value
Converting from an S-corporation to a C-corporation before an exit can unlock major tax advantages, but it can also create unexpected costs. Timing, growth strategy, and exit goals all shape the outcome.
If an eventual exit is one of your long-term goals, reviewing your entity structure early can help align tax planning with that vision. A proactive strategy can align your tax planning with your long-term vision and help protect the value you worked hard to build.]]>On Behalf of Blazier, Christensen, Browder & Virr, P.C.<![CDATA[3 tips for preventing the abuse of financial power of attorney]]>https://www.blazierlaw.com/?p=498642026-02-11T12:01:59Z2026-02-16T12:01:21Zfinancial power of attorney can be helpful.
The agent or attorney-in-fact named in the documents can oversee resource management and the financial obligations of the incapacitated person. They can pay their bills or manage their small business.
Many people recognize that financial powers of attorney are useful, but they may worry about someone else abusing the authority granted in those documents. Appropriate restrictions added to financial powers of attorney can help prevent the misuse of authority and financial losses. What protective terms can people sometimes add to powers of attorney?
1. Nominating two or more co-agents
Typically, one person holds power of attorney and manages matters for an incapacitated party. It is possible to require that two or more people work cooperatively. This approach helps prevent scenarios where one person makes damaging decisions for their own benefit. Agents sharing authority can monitor one another's choices and intervene if one agent attempts to do something for their own benefit instead of the protection of the principal who empowered them.
2. Requiring a lengthy incapacitation
Standard financial powers of attorney take effect as soon as a person becomes incapacitated. However, many medical emergencies are short-term issues that resolve within days. Some people protect themselves from the abuse of power of attorney by requiring that their medical incapacitation last a minimum amount of time before an agent can assume authority.
3. Limiting access and control
Powers of attorney do not need to provide carte blanche access to and control over personal resources. Principals can grant an agent the authority to access only one financial account or attend to specific financial needs. This approach helps protect high-value assets from inappropriate transfers or liquidation.
Adults adding financial powers of attorney to an estate plan may need support as they draft appropriate documents. Discussing financial needs and concerns with a lawyer can help people ensure they have protection when they need it the most. Custom language added to financial powers of attorney can protect people from abuses of power while they are medically vulnerable.]]>