Estate Planning

How Recent Concerns Surrounding Conservatorships Can Play into a Texas Estate Plan

Published on: July 29, 2021 | By McCulloch & Miller, PLLC

Once best known for her chart-topping hits, Britney Spears is now in the limelight for a much more somber reason.

For over a decade, Ms. Spears has been under a conservatorship following a decline in her mental health. That conservatorship has recently gained attention and notoriety as Ms. Spears and those around her allege that the arrangement has been abusive. The story of her conservatorship raises an alarming question: If a conservatorship could happen to a woman as powerful as Britney Spears, could it happen to you, too?

Fortunately, there are well-established ways to avoid a court-ordered conservatorship or guardianship in the event of incapacitation. Specifically, trusts and estates lawyers can help build a legal shield in the form of a revocable living trust.

How Cohabitation Complicates Texas Estate Planning

Published on: July 22, 2021 | By McCulloch & Miller, PLLC

More and more Texas couples are choosing to cohabitate without getting married. For older couples, this arrangement is often intended to protect assets for their children. Couples should be aware that cohabitation can affect estate planning in unexpected ways, however. With the right trusts and estate planning lawyer, cohabitating couples can navigate these pitfalls with ease.

The Major Difference in Inheritance

A key difference between a cohabitating and married couple in terms of estate planning is the effect of one partner’s death on inheritance. In the case of a married couple, a surviving spouse automatically maintains an interest in her deceased spouse’s estate, even if the decedent did not leave a will. In the case of an unmarried, cohabitating couple, however, a surviving partner lacks any default legal interest in their deceased partner’s estate. In other words, the surviving partner will not inherit any part of the estate unless a will is in place designating the survivor as a beneficiary.

Estate Planning in Houston as a First-Time Parent

Published on: July 20, 2021 | By McCulloch & Miller, PLLC

Congratulations on your new arrival! When planning for a first child, there are a few tasks that cannot be put off. One of these tasks that is often overlooked is estate planning. In the event of the unthinkable, a well-thought-out plan for your assets can help ensure that your children will always be cared for.

An effective estate plan will answer a variety of important questions. At a minimum, a properly structured plan will address the distribution of assets and care of children in the event that neither parent is alive. Experienced Houston estate planning attorneys address these issues in careful detail, working with families to identify their unique needs and create tailored solutions.

Flexibility in Estate Planning for Many Needs

How to Navigate Unforeseen Issues that Arise in Houston Estate Planning Process

Published on: July 5, 2021 | By McCulloch & Miller, PLLC

Planning Ahead Reduces Family Conflict

Planning for the division of assets and other desires upon someone’s death can be an uncomfortable and difficult process. Often, parents or other benefactors want to assume that their heirs and beneficiaries will understand their end-of-life wishes and cooperate in dividing their assets and making funeral arrangements. Unfortunately, this is not always the case. An overly simple or ambiguous will (or the lack of a will entirely) can sometimes lead to division and conflict between family members at the most sensitive time of their lives.

A recent industry publication outlines some tips and solutions to prevent such discord after the death of a loved one. According to the report, the most important piece of advice is to start the estate planning process sooner rather than later. Although it can be tricky for an heir to bring up estate planning issues with a parent, it is important to remember that an effective and clear estate plan can give everyone involved peace of mind that the wishes of the parent will be honored upon their death, while limiting conflict among the heirs. Without a clearly outlined estate plan, two or more heirs may disagree in good faith about the wishes of their deceased loved one, and the disagreement can lead to divisions that certainly would not have been desired by the loved one in the first place.

Shifting to Values-Based Estate Planning in Houston

Published on: June 28, 2021 | By McCulloch & Miller, PLLC

Estate planning is a critical collection of documents that protects one’s assets and property for future generations. An “estate” is the collection of these documents, and it specifies who will protect ones’ wishes and act on them when the time comes. While estate planning is a centuries-old tradition that many people have engaged in, a shift is occurring that is changing the way many people choose to pass down their assets. This new trend is commonly referred to as “values-based” estate planning.

Historically, estate plans were designed to address assets, not personal, familial relationships. However, when familial relationships are on thin ice, a family’s overall wealth can suffer. According to research, many family businesses dissipate after the second generation. This fact highlights the importance of addressing estate plans with a new lens.

Texans who want to pass on their wealth effectively should consider hiring an attorney to gather materials and develop a values-based estate plan. Values-based estate planning involves evaluating the creators’ values, celebrates the life they have built, and creates a fulfilling legacy to leave behind for future generations. These documents help create an atmosphere of trust amongst heirs and help forge meaningful relationships between family members for generations to come.

Estate Planning Considerations for LGBTQ Couples in Houston

Published on: June 25, 2021 | By McCulloch & Miller, PLLC

Estate planning is a fairly complex topic. The laws frequently change and are not always intuitive. However, estate planning is crucial and, while the thought of starting the estate planning process may not be something anyone looks forward to, it is something everyone needs to consider. This is especially the case for LGBTQ couples, as the Houston estate planning laws applied by the courts, unfortunately, do not adequately cover most couple’s wishes when it comes to property distribution and end-of-life decision-making powers. Below are a few things LGBTQ couples should consider when assessing their estate planning needs.

Living Wills and Health Care Powers of Attorney

Not everyone wants the same level of care if they suddenly become ill or incapacitated. However, unless you take affirmative steps to create a directive to physicians (living will) and healthcare power of attorney, courts will apply default rules when it comes to appointing someone to make decisions on your behalf.

Texas Estate Planning After Purchasing a Home

Published on: June 24, 2021 | By McCulloch & Miller, PLLC

According to the National Association of Realtors, the pandemic has brought on an unprecedented amount of home sales in Texas and throughout the United States. As home sales increased, mortgage rates hit record lows, encouraging quarantined home buyers to jump-start their searches. Those who have bought or sold a home during this time should contact a Houston estate planning attorney to discuss their financial future.

Estate planning is a critical process that allows individuals to protect their assets, businesses, and loved ones. Although many people erroneously believe that estate plans are reserved for older wealthy individuals, that can not be farther from reality. The modernization of estate planning makes it an accessible and necessary way for people to safeguard their interests.

Developing a binding and effective estate plan will ensure that a person’s home goes where they want it to go after they pass on. One way to meet these goals is by placing a home in a trust. Estate planning laws do not require homeowners to own their home outright to transfer it to a revocable trust. Transferring a home into a trust allows family members to avoid going through a complex and lengthy probate process. There are many options on how best to do this, depending on the homeowner’s specific situation.

Impact of Increasing Healthcare Costs on Texas Estate Plans

Published on: June 22, 2021 | By McCulloch & Miller, PLLC

Society as a whole has experienced unexpected and overwhelming changes over the past year. These changes have undoubtedly caused people to consult with their Houston estate planning attorneys to address their long-term goals. Recent surveys by TD Wealth highlight several issues that have impacted estate planning.

Healthcare Costs Skyrocket, But That’s Not the Only Problem

As Americans continue to live longer, many families incur hefty healthcare costs long after they stop working. The surveys reveal that rising healthcare costs combined with market volatility present significant challenges to those creating Houston estate plans. Previously market researchers from TD Wealth found that one of the most significant threats to effective estate planning came from familial conflict.

How May Changes to Estate and Gift Tax Impact Texans?

Published on: June 7, 2021 | By McCulloch & Miller, PLLC

Although there has recently been a lot of news out of Washington, D.C.—particularly the COVID-19 Relief Bill—many individuals are interested in the 2022 fiscal year budget and the proposed changes that will be made. This includes expected capital gains and dividend tax rate increases for high-income individuals, along with any potential individual income tax rate increases. Another critical change is the expected estate and gift tax exemption. These changes will be made through the budget in order to fund the COVID-19 Relief Bill. While President Biden’s proposed budget will not be released until later this month, below are common questions about potential changes that will be made and how Texans should prepare their estate plan in the meanwhile.

What Gift and Estate Tax Changes Are Likely to Occur?

Currently, the estate tax and lifetime gift tax exemption is $11.7 million per person and $23.4 million for married couples. This means that if an estate exceeds $11.7 million, currently, when the person passes away, their beneficiaries—the people they are leaving the estate to—will pay a tax of 40% on the remaining value of the estate. If a person’s estate is valued at lower than this, their beneficiaries do not need to pay a tax. Additionally, if a person leaves their estate to their spouse, the spouse does not have to pay an estate tax—even if the value is above the exemption limit.

Texas Court Rules on Mental Capacity Needed to Admit a Will

Published on: June 2, 2021 | By McCulloch & Miller, PLLC

When a family member or close friend is upset by the contents of a deceased person’s will, they may contest the will’s validity. The most popular argument is to claim the will is invalid because of the person’s mental incompetence or that there was undue influence exerted upon them.

In a recent Texas appellate case, the court was tasked with determining whether the deceased’s most recent will should be admitted to probate after her sons argued their mother’s dementia meant she did not have the mental competence to execute the will. Ultimately, the court ruled that the deceased could understand she was making a will, so the will was admitted to probate—meaning the court will divide the deceased’s assets according to the will.

In this case, the deceased—before her death—created several wills over the last few years, but the last will left her estate to her one son and excluded her other two sons entirely. After her death, those sons argued this will was invalid because the deceased had dementia which made her incapable of understanding she was making a new will that would invalidate the prior ones.