Estate Planning

What to Bring to a Meeting with Your Houston Estate Planning Lawyer

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

Taking the first step in meeting with an estate planning attorney is a noble and critical endeavor. This is setting up an individual’s plans for the future, so after their passing, their assets and property are handled according to their wishes. However, the productivity of a first estate planning meeting depends on the documents the person brings to the meeting; the more information provided to the attorney, the faster the estate planning process can begin. Below are categories of documents that clients meeting with a Houston estate planning attorney should bring to their initial consultation—having these documents ready will not only help to begin the estate planning process, but also allow the individual to assess the attorney and their merits.

Financial Personal Papers and Banking Accounts

It is critical to bring personal financial papers to the first meeting with an estate planning attorney, so they can assess the person’s assets and discuss how they should be distributed. Financial personal papers include an inventory of valuables, car titles, tax returns, rental agreements, and mortgage documents. Of course, individuals should bring other financial documents they believe are important for their estate planning attorney to know about. Additionally, individuals should be able to speak in detail about their bank and credit union accounts and statements. Even if a person does not bring the credit statements to the appointment, they should have these items organized and stored in a safe place.

What is a Texas SLAT Trust?

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

With President Biden’s inauguration, many Americans are wondering if the estate and gift tax exemption will revert to a lower level, as well as what they can do to protect their assets. While there are many Houston estate planning options for individuals to shelter funds from the estate tax, SLAT trusts may be the right option for married couples. Because most Texans are unaware of a Texas SLAT—and how it could benefit them—below are the common questions and explanations of why a SLAT might help their loved ones.

What Is a SLAT Trust, and What Are Its Benefits?

A Spousal Lifetime Access Trust (SLAT) is a gift from one spouse to an irrevocable trust for the other spouse’s benefit. When creating a SLAT, one spouse gifts funds to an irrevocable trust for the other spouse to access once they have passed away. A person creates a SLAT for their spouse to allow them to (i) receive assets up to the federal estate tax exemption; and (ii) prevent the value of the trust from being included in the surviving spouse’s gross estate tax when the spouse dies. The spouse that benefits from the SLAT—often called the beneficiary spouse—can receive assets that are sheltered from the gift tax.

Texas Estate Planning for Adoptive Parents

Published on: January 11, 2021 | By McCulloch & Miller, PLLC

There are unique challenges that families with adopted children face; however, most of these families do not know that estate planning is one of them. A Houston estate plan is essential for all people, but especially for families with adopted children because of the different laws they are subjected to. Texas law treats families differently, based on whether the children are legally adopted or not. Below are various estate planning and inheritance situations, all of which depend on the legal make-up of a person’s family.

Legally Adopted Children

When children have been legally adopted into the family, they have the same legal rights as biological children. This includes equal rights in estate planning situations, and biological and adopted children will receive the same inheritance and property when their parents have passed away. Therefore, legally adopted children will be treated the same if the parent has a will and trust in place. This occurs even if the adoption is finalized after the will or trust has been created.

Houston Estate Planning as a New Year’s Resolution

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

At the beginning of every new year people make resolutions they hope to accomplish over the next twelve months. While the most common resolutions involve things such as exercising more and being kinder to others, resolutions about estate planning should also be at the top of this list. Because there are many resolutions people can make about estate planning – depending on where they are in the planning process – below are a few estate planning resolutions to consider with the new year.

1. Resolution: Create an Estate Plan

For individuals who do not yet have an estate plan in place, this is the year to do so! Life often has unexpected twists and turns, so it is always better to be prepared and have an estate plan. Even for people who do not think they need an estate plan – either because they do not have any assets, or their assets will go to their intended beneficiary even without a will – these are often mis-assumptions. In fact, drafting an estate plan is not a complicated process, especially when there are experienced estate planning attorneys able to help.

How Older Adults Can Help Prepare Their Loved Ones for the Inevitable

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

Thinking about death can be extremely upsetting. People do not want to imagine their loved ones coping without them or having to handle their affairs after they have passed. However, some of these worries can be avoided. Older Texans can help their heirs before they die by keeping their affairs orderly and having a Houston estate plan in place. These steps may seem unnecessary but can help loved ones avoid key errors that often occur after a person’s death. Below are some tips everyone can follow, so their beneficiaries and loved ones will be able to efficiently execute their estate and wishes.

Have an Estate Plan in Place

While this tip may seem obvious, having a detailed estate plan in place is the only way to truly ensure a person’s wishes are honored after their passing. Estate planning is arranging – during a person’s life – the management and disposition of their estate after they have passed away. Often, this includes writing a will and naming beneficiaries who will receive any assets or property the person owns. Without an estate plan, loved ones will need to go to probate court before any assets can be distributed. The time and money spent going through this process – often a considerable amount – could all be avoided if the individual had created an estate plan. Then, their loved ones could focus on grieving and emotionally recuperating, rather than paying legal and court fees as the probate court process drags on.

Should You Draft Your Texas Estate Plan Yourself?

Published on: January 4, 2021 | By McCulloch & Miller, PLLC

When people start to think about the Houston estate planning process, they often think about doing it themselves. Either because of cost or other reasons, they believe this to be a better option than hiring an estate planning attorney. These estate plans, nicknamed DIY estate plans, are often riddled with mistakes and can be extremely expensive to fix. In fact, it is often far cheaper to hire an estate planning attorney to draft the plan first than to create a DIY estate plan that ultimately cannot be executed. Below are some common questions individuals have when debating whether to create an estate plan themselves, or to contact an experienced estate planning attorney.

What if I Have a Straightforward Situation?

People often assume they only need to hire an estate planning if they have millions of dollars in assets or have a complicated familial situation. However, these are not the only people that can benefit from utilizing an estate planning attorney because there is no such thing as a straightforward situation. Not surprisingly, every person and their loved ones are unique, so their estate plan needs to be unique too. DIY estate planning websites do not ask very specific questions about the client, instead just inquiring about their relatives and who they would want to care for their minor children if they were to pass away. This does not delve into the questions necessary to create an appropriate estate plan.

Should I Include a Power of Attorney in My Houston Estate Plan?

Published on: December 23, 2020 | By McCulloch & Miller, PLLC

Most individuals have heard of a power of attorney but are unaware of what a power of attorney actually is. In short, a power of attorney gives another person the ability to act on another’s behalf, either for a temporary or permanent amount of time. There are different types of powers of attorneys, each of which is utilized for different purposes. Below are some common questions about power of attorney documents and why they are critical Houston estate planning documents.

What Is a Power of Attorney, and Are There Different Types of Powers of Attorney?

A power of attorney is a legal document that authorizes a designated individual – the agent – to take action on behalf of another, called the principal. There are different types of power of attorneys. Depending on the purpose of designating a power of attorney, the principal may give the agent very broad power or limit their authority to a single purpose or transaction. For instance, a special power of attorney is utilized for a single occurrence, such as when a person wants to buy a house but cannot attend the closing.

How to Organize Digital Assets for Houston Estate Planning Purposes

Published on: December 18, 2020 | By McCulloch & Miller, PLLC

Individuals are normally told not to share their passwords with anyone for security purposes; however, there is one important exception. Individuals should make sure they have shared their passwords with a loved one, in case of their death. Doing so can be critical, as digital assets have become more and more prominent. People store important information online now, with no recourse if the person dies without giving someone else permission to access their digital information after their death. Below are some tips that individuals can use – either when crafting their Houston estate plan or afterward – to ensure their digital assets are not lost after their passing.

Creating a Digital “Vault”

Estate planning advisors will often tell their clients to create a drive or “vault” to store important documents and information. This can include estate planning documents, copies of personal identification, credit card information, and mortgage paperwork. Individuals should also include their digital login information and passwords too in this drive, so estate executors and loved ones have the ability to access it.

Common Misconceptions About Houston Estate Planning

Published on: December 14, 2020 | By McCulloch & Miller, PLLC

Despite the importance of having a Houston estate plan, over 60% of people do not have a will. Those without a will often cite several reasons, including that they do not believe a will is necessary, and the cost of creating a will is too high. These misconceptions stop people from creating a will or estate plan, when it is actually vital for everyone – despite age or health – to have one in place. Below are common misconceptions that many Texans have about estate plans, and why people should contact an estate planning attorney right away.

Misconception: “I’m Young, I Don’t Need an Estate Plan”

Many people – even those with families – do not believe they need an estate plan because of their youth. Unfortunately, tragedies occur every day, and it is impossible to predict the future. If a person owns any property or assets – regardless of their age – they should have an estate plan in place, so their wishes are honored after their passing. Otherwise, the individual will have no say over how their assets are bequeathed. When a person dies without a will in Texas, a judge will decide who inherits the assets. Although the assets are often given to the deceased’s spouse, children, or relative, this process is complicated as the court evaluates the assets and necessary evidence.

The Best Times to Update a Houston Estate Plan

Published on: December 10, 2020 | By McCulloch & Miller, PLLC

Creating a Houston estate plan is a great first step in ensuring a person’s assets and wishes are managed after their passing. However, without frequently reviewing the estate plan and updating it as needed, the process will not go as smoothly as anticipated. Many people are unaware of when an estate plan should be reviewed or updated. Below are some common questions people have about reviewing an estate plan, as well as specific instances that precipitate the need to update the plan.

A New Addition to the Family

Often, young families will create an estate plan and name their children as beneficiaries. However, additions to the family – such as a new child or grandchild – will often be overlooked as a beneficiary if the estate plan was created before their arrival. Because of this, people should update their estate plan after a new addition, so the new family members are named and specifically included as beneficiaries. This process may also include changing the estate plan to remove individuals from the will, either due to death or divorce in the family. Because family dynamics are constantly changing, it is important estate plans are regularly updated to ensure it reflects the current family structure and dynamics.