Estate Planning

How to Know if Your Estate Plan is Up to Date

Published on: September 7, 2024 | By David W. Miller

Drafting an estate plan is an important first step in every person’s estate planning journey, but the work does not end there. Importantly, your estate plan should be up to date as you navigate life’s twists and turns. Today, we answer a common question we receive from our client community: how do you know if your estate plan is up to date?

Updating Your Plan Every Three to Five Years

As a general rule of thumb, you should update your estate plan approximately every three to five years. If five years have passed since you last looked at your estate plan, this is a sign that your plan may not be current. At McCulloch & Miller, we recommend having an estate planning attorney review the plan during this timeframe to ensure the plan is up to date with any changes in the legal landscape. As laws around probate and estate planning change, so should the will or trust associated with your estate plan.

Updating Your Plan Along With Life Changes

Your plan might not be up to date if you have undergone a change in life circumstances. For example, have you gotten married, separated, or divorced? Have you had children, or have your children moved out of the house? Have you acquired new property or debts? Are you subject to a new court order, such as a child support or alimony order? If any of these apply to you, your estate plan should reflect your change in circumstances.

A Will or a Trust: Which is Right for You?

Published on: August 29, 2024 | By McCulloch & Miller, PLLC

There is no “one size fits all” approach to estate planning. Each person brings his or her own set of circumstances, goals, and opportunities to the table. One of the first questions we discuss with our potential clients during a first meeting is whether they would like to move forward with a will or a trust. There are basic differences between the two tools, and these differences can help clients decide which tool (if either) is right for them and their families.

How Much Do You Value Privacy?

If it is important to you for your assets, debts, and estate plan to be kept private, a trust might be better for you. A will passes through probate court, meaning a judge will have to validate the will before approving the distribution of the assets. These proceedings become part of the public record. A trust, on the other hand, allows you to forego probate altogether, which shields your estate plan from public view.

How Complex is Your Estate?

In general, a more complex estate lends itself better to a trust than to a will. While there are certainly exceptions to this rule, if you have assets such as an interest in a business, multiple real estate properties, or significant investments, you may want to consider a trust over a will. It is sometimes easier to tailor a trust to a client’s specific estate, and if you have a complex estate, the trust might allow you to more easily meet your personalized goals.

Estate Planning Mistakes in Texas and How to Avoid Them

Published on: August 22, 2024 | By David W. Miller

If you are starting to think through your estate planning process, it can be difficult to know where to start. In our decades of practicing as Houston estate planning attorneys, we have noticed several mistakes that are common for people to make as they start their estate plans, and we have developed helpful tools for how to avoid them. On today’s blog, we will review these estate planning mistakes in hopes of helping you get a strong start in your estate planning journey.

Mistake #1: Not Starting Early

It is tempting to wait until you are “later in life” to begin your estate plan. Unfortunately, the reality is that we never know what life has in store for us. No matter your age, it is prudent to speak with an estate planning attorney that can help you figure out how to draft a plan that works for you. If something unexpected were to happen and you did not have a plan in place, your loved ones would be left in disarray trying to make arrangements for your assets.

Mistake #2: Using a “One Size Fits All” Approach

We understand the allure of using a DIY will that you can find online. In reality, though, every person has a different set of needs and circumstances. In fact, a will might not be right for you at all: a trust might be a better tool for your estate plan, in that it could help you avoid probate and get money to your beneficiaries more efficiently. Without taking the time to explore different options, you could miss out on important tools to shape your estate plan. Exploring these options also reinforces the importance of including provisions that many people forget to include in their plans, such as power of attorney, end of life care instructions, funeral arrangements, and instructions for your digital footprint.

Three Signs It’s Time to Review Your Estate Plan in Texas

Published on: August 22, 2024 | By Thomas W. McCulloch

Maintaining your estate plan is a bit like maintaining a car: it occasionally requires effort, but if you remain diligent, you should be well taken care of. The good news is that if you already have an estate plan, you have put in a significant amount of time and work, and this will help you down the road. However, we always recommend keeping an eye out for indications that it might be time to review your estate plan. Today’s blog reviews three signs that you might need to update your plan.

Three to Five Years Have Gone By

The first, and easiest, indicator that you might need to update your estate plan is that the last time you changed your plan was between three and five years ago. As the legal landscape changes and your circumstances change, it is smart to call up your estate planning attorney and think about updating the plan. This should happen at least twice every decade.

You’ve Experienced a Change in Family Circumstances

The following changes could warrant an update to your estate plan: marriage, separation, divorce, a child support order, the birth or adoption of children, the death of a close family member, or the aging of your children. With any of these circumstances, you should update your estate plan to make sure it aligns with what your life looks like in its current state.

What is Medicaid Crisis Planning?

Published on: July 30, 2024 | By David W. Miller

As we age, we need more health services to maintain our quality of life. Unfortunately, in this day and age, necessary services can cost a fortune. At McCulloch & Miller, one of our specialties is Medicaid crisis planning, which helps clients prepare for possible health needs in the future. If you have not yet begun your Medicaid crisis planning process, contact a Houston elder law attorney that can help you get started.

What Services Might I Need?

Government estimates indicate that up to 70 percent of older individuals require long-term care at some point. As you age, you might need to move into a facility such as a nursing home or residential center. If you decide to stay in your home, you might need a fulltime or parttime nurse to come check on you or to offer more substantive care. You might also opt for home therapy, wound care, fall prevention services, or other specialized services.

What Does Medicaid Crisis Planning Achieve?

Medicaid crisis planning helps you predict whether might qualify for Medicaid, which covers significant amounts of long-term care. To qualify, you must be characterized as “low income” or “very low income.” Of note, the government looks not only at applicants’ current financial status but also at their previous five years, so if you have only recently qualified as “low income,” you still might not qualify under the rules. To learn more about specific qualifications, click here for a chart of Texas Medicaid Facts for 2024.

How to Ensure Your Wishes Are Honored After Your Death

Published on: July 30, 2024 | By Thomas W. McCulloch

It can be scary to think that after you are gone, you have no control over how your assets are distributed. When you spend your life working hard to provide for yourself and your loved ones, you want to make sure that legacy continues after you die. There are some fundamental ways you can make sure your wishes are honored after your death; today, our blog reviews a few of these methods. This is not an exhaustive list, but instead a guide for what steps you should be taking as you start to think through your estate plan.

Write a Detailed, Thorough Estate Plan

Your estate plan should leave nothing to chance. It should include an exhaustive list of your assets, and it should be as specific as possible. The estate plan should not only provide instructions for your money; it should tell loved ones how you want them to handle your valuable or sentimental items, physical property, and even your digital footprint. By working hard to ensure this list covers all of your property and assets, you can make sure your loved ones know exactly how you want to handle all parts of your estate when the time comes.

Hire a Trusted Estate Planning Attorney

It can be tempting to use “DIY will” tools online or create estate plans without the help of an attorney. Ultimately, though, if you want to make sure your wishes are honored after you are gone, you should speak with an experienced Houston estate planning attorney that can help you create an individualized plan that takes your priorities into account. Estate planning attorneys will have insider knowledge about probate court, the validity of different estate planning tools, and basic procedural requirements for your documents. Hiring the right attorney could end up making a huge difference for how your estate plan plays out when you die.

Preparing for a Consultation with a Houston Estate Planning Attorney

Published on: July 23, 2024 | By McCulloch & Miller, PLLC

If you have decided to take the first step and meet with a Houston estate planning attorney, congratulations; you’ve made a great decision that will positively affect your and your families’ long-term futures. Estate planning consultations can be helpful for individuals looking to draft an estate plan, modify an estate plan, or just ask questions about whether they need an estate plan at all. Today, we cover some basics that can help you feel prepared for a consultation with your Houston estate planning attorney. Taking these steps can ensure that your meeting is as efficient and beneficial as possible.

Step 1: Gather Your Documents

Before you attend your consultation, start to gather documents that you might need on your estate planning journey. These could include tax returns, bank account statements, property deeds, divorce decrees or child support orders, and any anything else that speaks to your financial state. It is wise to go ahead and bring these documents to your initial consultation in case your attorney has questions about how and where you keep your assets.

Step 2: Talk to Your Loved Ones

Your estate plan should ideally not be a surprise to your closest family members. If you plan to involve others in the execution of your state plan, as an estate executor or trustee, perhaps, it is better to ask these individuals on the front end if they are willing to serve in this capacity. Communicating early and often about your estate plan is always a good idea.

When a Will May Not Be Enough for Your Estate Plan

Published on: July 17, 2024 | By Thomas W. McCulloch

Many times, prospective clients come to us for an initial consultation asking for help writing a will. While the will can be a valuable tool in estate planning, there are times when writing a will may not be enough. Today, we cover some reasons that your estate plan might need more than a will. As always, to talk more about the specifics of your estate and the planning process ahead, contacted a trusted Houston estate planning attorney that can walk you through your next steps.

Reason 1: Avoiding Probate

The first and most obvious reason to explore an estate planning tool outside of the will is that you want your loved ones to avoid probate after you are gone. A will is generally subject to probate, meaning a probate court reviews the will and decides if it is valid. Only after deciding the will is valid does the court approve the will so that beneficiaries can receive their assets. Probate takes time and resources that many people don’t have or don’t want to expend.

By using a trust instead of a will, you can oftentimes avoid probate altogether. The trust allows property and assets to go straight to beneficiaries instead of through the intermediary of the probate court. This allows for more efficiency, both in terms of cost and time.

Business Owner Estate Planning Strategies in Texas

Published on: July 13, 2024 | By David W. Miller

woman retirement risks and estate planning

When it comes to estate planning, business owners have a special set of needs to consider. Today, we cover some factors you might need to think through if you are a business owner drafting your estate plan. Of course, the specifics depend on the kind, size, and nature of your business, and if you have questions about how these factors apply to you, contact a Houston estate planning attorney you can trust.

What happens without an estate plan?

Unfortunately, without an estate plan in place, business owners can leave things in shambles when they pass. In some cases, the probate court can could freeze a decedent’s business account if there is no valid estate plan. An attorney will then have to petition the court for an emergency order to get permission to both handle the business’s affairs and decide how to deal with the business’s assets. The attorney, along with the decedent’s heirs, will be left to figure out how to figure everything out in a pinch. This can be stressful for beneficiaries and detrimental to the business at hand.

What factors should a business owner consider when drafting an estate plan?

Some questions related to your estate plan that you might want to consider if you are a business owner include:

What happens if you are sued?
How can you protect your business from liquidation or seizure?
What is your business worth now? What might it be worth in 10 years?
How will your heirs have liquidity to pay estate taxes on an estate if most of the value of the estate is tied up in a family business?
What should you do if you are selling the business and anticipating a large tax bill?

When It’s Time to Consider Adding a Trust to Your Texas Estate Plan

Published on: July 5, 2024 | By Thomas W. McCulloch

As many of our clients know, the trust can be a valuable estate planning tool for those who choose to use it. If you are wondering whether adding a trust to your estate plan might be the right next step for you, consider the following reasons that many individuals choose to utilize the trust in their estate planning processes.

You Want to Avoid Probate

The most common reason to add a trust to an estate plan is to avoid having to go through the probate process. When a person dies with a will, the will’s executor must present the will to the probate court. The court reviews the will, decides it is valid, then approves the distribution of the decedent’s assets. This process takes time and resources, and it can be frustrating for families to have to wait for the court proceedings to play out over a series of months.

A trust, on the other hand, is exempt from probate. By putting your assets in a trust, these assets can go directly to your intended beneficiaries instead of passing through probate court. Avoiding probate has the added benefit of ensuring privacy for the decedent and their family, since no documents become part of the public record when they are part of a trust.