Estate Planning

The Importance of Choosing the Correct Trustee in Your Estate Plan

Published on: August 6, 2020 | By McCulloch & Miller, PLLC

Ensuring how a person’s assets and property will be handled after death is a critical first step when drafting a Houston estate plan. Often, a comprehensive estate plan involves the creation of one or more trusts. Thus, the second step of estate planning, determining who to name as a trustee, is often just as vital.

Serving as a trustee is time-consuming and complex. Although individuals often select a family member or close friend to serve as the trustee, picking a professional trustee can often eliminate a lot of the common issues that trustees face when executing an estate plan. Because a trustee will be responsible for ensuring an individual’s assets are distributed in a fair and legal manner, there are factors to consider when choosing a person to serve as the trustee of the estate:

Ability to Make Difficult Decisions

Solving Common Houston Estate Planning Disputes

Published on: July 24, 2020 | By McCulloch & Miller, PLLC

When a loved one passes away, it is often a very tragic time for the family. However, it can be even more upsetting when the person dies without a will, and there is a family dispute over the contents of the estate. While having a thorough Houston estate plan can minimize the risk of disputes, there is still the possibility that issues will arise. Below are some common estate problems and solutions.

Conflicts with the Estate Executor

A family dispute with an estate’s executor or administrator is a regular estate planning issue. When an executor is appointed to manage the estate after a person passes away, there can be a conflict if family members disagree with the executor’s choices. These disputes include if the family believes the executor was poorly chosen or if the executor is engaged in the mismanagement of the estate, including possible fraud. In these cases, it may be necessary to have the executor removed and replaced. Because it may be difficult to find an executor that family members are satisfied with, it is often useful to find a neutral outsider who does not stand to inherit any of the estate property.

How Do I Start My Houston Estate Plan?

Published on: July 20, 2020 | By McCulloch & Miller, PLLC

“Estate planning design and implementation is not only complex but can be highly emotional. Therefore, it’s important to have a basic understanding of the estate planning process, before approaching a professional.”

The decision to start an estate plan is critical for all families, but it can also be a challenge. In many cases, the greatest impediment families face initially is discussing death, especially the deaths of family members. Forbes’ recent article entitled “Estate Planning 101: Tackling Your Estate Plan” suggests several life events that will trigger the need to create an estate plan for your family or business.

The article also reminds us that it’s important to think about what might happen to you or someone in your family, in the event of a substantial life change. Here are some life events that can necessitate the need for an estate plan and a visit with your attorney:

How Do Farmers Start an Estate Plan?

Published on: July 16, 2020 | By McCulloch & Miller, PLLC

“Planning for the end of your life can be intimidating. When you are a farmer, your business is not only your livelihood and your passion, but, often, it is also intermingled with your family life. For that reason, estate planning — arranging for the management of your assets once you die — is especially important for aging farmers.”

The Bangor Daily News explains in its article “How farmers can start an estate plan” that we all know we’re going to die, but it’s not our favorite thing to talk about. However, it’s important to start these conversations.

The article helps aging farmers who want to get started with the estate planning process, by sharing some tips to clear up some of the confusion, eliminate questions in the process and motivate you to begin your estate planning journey.

Avoiding Probate Through Effective Texas Estate Planning

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

Depending on the situation, the probate process can be a nightmare. For this reason, many believe probate should be avoided whenever possible. However, avoiding probate depends on the circumstances of each individual situation. While creating a Houston estate plan that avoids probate will be beneficial in most circumstances, there are certainly some situations where the level of planning required to avoid probate is unnecessary.

What is Probate?

Probate is the court-guided process through which a decedent’s property is distributed accordingly. Through this process, the court authenticates the decedent’s will, notifies potential heirs, accounts for the decedent’s property, and addresses tax obligations before estate property is distributed to beneficiaries. The court is also responsible for appointing an executor of the estate to oversee the process and protect the interests of the estate and its beneficiaries. In the case of an intestate estate (where the decedent dies without a will) probate serves the same functions, with the only difference being that property is ultimately distributed according to state intestacy laws.

Important Houston Estate Planning Tools for Unmarried Couples

Published on: July 9, 2020 | By McCulloch & Miller, PLLC

For individuals of all ages and familial structures, it is important to have a comprehensive Houston estate plan for two reasons. First, it provides instructions regarding the distribution of someone’s hard-earned assets, ensuring that their property is distributed according to their desires. Second, an estate plan provides end-of-life instructions that can help ensure an individual’s last days can be spent peacefully. While an estate plans should be a priority for any individual or family, an estate plan is even more critical for those in long-term relationships with someone whom they are not married to.

For unmarried couples, if one partner dies without an estate plan the results can be disastrous. State law assumes and protects the interests of married partners by ensuring them part of the estate through communal property. Married partners also have the presumed right to make medical and other important decisions on behalf of their significant other. Unmarried couples on the other hand do not have the same sort of protection. If one partner dies or becomes incapacitated, the other partner can only inherit from their estate or make important decisions on their behalf if careful estate planning has not already taken place. Below is a list of estate planning tools that are useful for unmarried couples who want to protect and provide for one another.

1. Will

Managing Digital Assets in Your Houston Estate Plan

Published on: July 1, 2020 | By McCulloch & Miller, PLLC

Traditionally, a Houston estate plan has primarily focused on the distribution of tangible property upon a person’s death. However, now that we are firmly in the digital age it is important for everyone to consider how digital assets should be addressed in an estate plan. Digital assets and information include just about anything that is primarily accessed through a digital platform. Examples include social media accounts, email accounts, photos and videos stored on a computer or in the cloud, online banking and investment accounts, and even cryptocurrency.

How do Digital Assets tie into your Estate Plan?

It is important to spell out how such assets and information should be treated within an estate plan. Those who do not have a will leave their loved ones and estate administrators with no access to them. This could result in the permanent loss of data and information stored on an electronic device. With all of the memories we capture and store using our phones, that could be the equivalent of losing years’ worth of family memories. Perhaps even more alarming is the prospect of losing access to financial accounts that are primarily accessed through online banking. If an estate plan is silent about such assets, loved ones may have to put up with the headache and added expense of getting a court order just to access a decedent’s digital accounts and information.

Houston Estate Planning for Young Families

Published on: June 22, 2020 | By McCulloch & Miller, PLLC

Many young people do not think much about estate planning. But having children makes estate planning an important consideration for any family. Young families with children should consider taking certain steps when going through Houston estate planning.

Basic Estate Planning Needs for Young Families

First, families should sit down with an attorney to write a will. Writing a will ensures that a parent decides who property and assets will go to in the event of the parent’s death. Writing a will is particularly important for parents because they need to name a guardian for their children. The guardian is the person who would care for the child or children if both parents were unable to care for their children. In the absence of a named guardian in a will, a court would generally choose a guardian for the children. Having a named guardian ensures that that person is appointed as guardian.

Take Advantage of a Rare Opportunity for Savings in Your Estate Plan

Published on: June 15, 2020 | By McCulloch & Miller, PLLC

Preferred Partnership Freeze

It is no secret that a well-put-together Houston estate plan can save younger generations an enormous amount of money. However, few are aware of the rare opportunity for estate tax savings caused by the economic conditions surrounding COVID-19. By taking advantage of a Preferred Partnership Freeze (PPF), high net worth individuals can avoid costly estate taxes and continue to take full economic advantage of their assets. Individuals will want to act quickly to seize this opportunity, as this is hopefully a once-in-a-generation opportunity that may not be around for long.

The recent economic shutdown due to the COVID-19 pandemic has decreased the value of many assets, including closely held businesses, investment portfolios, and real estate properties. A Preferred Partnership Freeze allows individuals to freeze the current valuation of such assets, and recognize certain benefits down the road as a result. For assets expected to appreciate, future interests can be placed into a trust avoiding estate taxes on the increase in value. For depreciable assets such as rental real estate, individuals can take advantage of estate tax deferral as well as a tax-free step-up in basis, and increased depreciation and amortization.

Review Your Houston Estate Plan to Avoid These Common Mistakes

Published on: June 11, 2020 | By McCulloch & Miller, PLLC

When was the last time you reviewed your estate plan? Most people have not reviewed their estate plan since they put it together with the help of their attorney. Although it is relatively common, taking a set-it-and-forget-it approach to estate planning is risky business. As time passes, life circumstances change, as does the law regarding estates. For these reasons, it is essential to review an estate plan every three to five years. Below are a handful of common mistakes that can easily be caught and corrected by reviewing all estate planning documents.

Updating Your Fiduciaries

Knowing who is named as the executor of a will or as the trustee of a trust is crucial to making sure that an estate plan is properly carried out. Each fiduciary plays a critical role in the administration of an estate. Over time, relationships often change. People drift apart and may even fall completely out of touch. People also grow old and pass away. Thus, it is crucial to check in with an estate plan every so often to make sure the named individuals are still up to the task. Even if the fiduciary is still willing and able, you may find on further inspection that there is a better person for the job.