Estate law

When Can Houstonians Use An Estate Tax “Portability” Exemption?

Published on: February 7, 2014 | By McCulloch & Miller, PLLC

Just when is the DSUE [Deceased Spouse Unused Exemption] available to a surviving spouse or the estate of a surviving spouse for use in determining the surviving spouse’s applicable exclusion amount?

It can be very challenging to stay on top of federal estate tax law changes. For instance, experts and taxpayers alike are grappling with the ins and outs of “portability.” How and when can it be used?

The temporary regulations governing portability are now on the books. While there is some guidance regarding how a “Deceased Spouse Unused Exemption” (DSUE) actually works, a recent Forbes article, titled “Estate Tax Portability – Date DSUE Amount May Be Taken Into Account,” provides some practical advice.

What Is Survivorship Insurance?

Published on: January 6, 2014 | By McCulloch & Miller, PLLC

Some wealthy people are taking another look at survivorship insurance. The relatively obscure product, also known as "second-to die" insurance, insures two lives, usually spouses, with one policy.Like its name indicates, the product pays out the benefit after the death of the second insured.

Where there is a risk and an attending financial exposure you cannot afford, there is a form of insurance to cover that risk exposure. When it comes to the ultimate risk – your family’s risk of losing you – life insurance is the fundamental solution. But what if there are two spouses? Naturally, financial risk is felt by the survivor at the passing of the first. That is why almost everyone needs some form of life insurance to provide for the surviving spouse. However, when there is some quantifiable financial risk left behind when the survivor passes, then there is a special form of life insurance to cover such exposure. It is called “survivorship life insurance.”

For the basics on survivorship insurance, consider reading a recent Forbes article titled “Sales of Survivorship Insurance Gain.”

Last-Ditch Will in Texas

Published on: December 16, 2013 | By McCulloch & Miller, PLLC

Done right, death-bed revisions may save their families income and estate taxes and prevent misunderstandings and administrative hassles. If not handled carefully, though, it can leave a will open to legal challenges that can drag on for many years …

During one's final hours, people tend to review their last wishes to make sure all will be ok in the end. They may even decide to make some last minute changes. But while it is your Last Will, deathbed revisions can create dangerous challenges to your overall estate plan if not accomplished correctly.

The Wall Street Journal considered this matter in a recent article titled “Changing a Will at the Last Minute.”

Definition of Estate Planning in Houston

Published on: December 9, 2013 | By McCulloch & Miller, PLLC

Estate planning is the process of legally structuring the future disposition of current and projected assets.

Estate planning is many things. In order to present a solid definition of this particular type of planning, a recent Forbes article posed the question, “What Is Estate Planning?”

The article concludes that “Estate planning is the process of legally structuring the future disposition of current and projected assets.” The operative words in this definition of sorts are “structure” and “process.”

Planning In Advance For Your Advance Health Directive in Houston

Published on: November 6, 2013 | By McCulloch & Miller, PLLC

Nancy

Wagner, a social worker at Monmouth Medical Center in Long Branch, N.J., encounters

this frustration at least once a week: A patient arrives in the emergency room

Debts And Death – What You Should Know about Death in Houston

Published on: November 1, 2013 | By McCulloch & Miller, PLLC

Coping with the death of a loved one is difficult enough without the added pressure of creditors calling you to collect on the deceased person’s credit card debt. But can a bank collect a credit card debt owed by your deceased parent or spouse?

By and large, we talk about probate as an unfortunate process. True, probate can put some undo stress on an already stressful family situation, even when there is no disagreement regarding how assets of the decedent are to be distributed. That said, probate can be utterly necessary and even useful when there are debts in the estate picture.

So, how do you handle debts after death? It is a practical question, after all. Few of us leave this life without something lingering in our accounts payable. Unfortunately, too many families do not know which debts live on after their loved ones are gone.