Estate Planning

Will Your Reward Points Transfer to Houston Heirs?

Published on: August 10, 2015 | By McCulloch & Miller, PLLC

Most of us never look twice at the fine print of the frequent flier rewards program’s terms and conditions. The type is so small and there’s so much of it … but if you did, you’d probably see language stating that any accumulated points are not transferrable on death. Some heirs have found that having the right documents and asking nicely can lead to an unexpected result.

If you fly the same route frequently, it pays to use the same airline and sign up for the airline’s rewards program. The accrued points can lead to great deals, reduce your airfare costs and for the real road warrior, generate enough rewards for free trips. There’s real value in these kinds of programs for the frequent flier.

Nevertheless, not everyone uses his or her accumulated point balance before passing away. Since the accumulated points do have a real market value, the question then becomes whether or not they are part of a decedent's estate.

Is Your Houston Estate Plan Current?

Published on: July 22, 2015 | By McCulloch & Miller, PLLC

Ensuring that your assets are passed on to heirs in a way that you wish is not always easy because of the many options available and the fact that the tax laws are always changing. While certain facts are relatively fixed – i.e., beneficiary designations on life insurance policies and retirement plans avoid having these particular assets subject to probate, others are subject to change. Keep up with these changes by meeting with your estate planning attorney on a timely basis.

The use of trusts to help estates avoid probate is well established in any estate planning law practice, but when laws change, estate planning must change also. An explanation comes from The (Anderson, IN) Herald Bulletin article, "Changes in laws can affect your estate planning," which explains how the revocable grantor trust works and why it was created: to help people avoid probate.

A revocable grantor trust roles include the grantor (the person making the gift), the trustee in charge of the trust (typically the grantor), the income beneficiary (also usually the grantor), and the remainder beneficiary. Taxes that are generated from investments and income are reported on a standard tax return. When assets are placed in a trust, individuals have control and the use of the assets. Ownership is structured so that there is no probate. Individuals should fund the trust with as many assets with which they are comfortable (except IRAs and retirement accounts).

Tell Your Houston Family Your Estate Planning Goals

Published on: July 1, 2015 | By McCulloch & Miller, PLLC

What can you do to push past the emotional aspects of estate planning to make sure your surviving family members can successfully deal with issues that may arise after you pass away?

Start early. Patrick Severo is the senior vice president and financial advisor at RBC Wealth Management. He also has three kids and knew he needed a plan to take care of them after he is gone. Severo recently told Forbes in the article titled, “Don't Let Emotion Sabotage Your Estate Plan,”that, although the discussion about what happens after you pass away feels uncomfortable, the earlier you can begin, the better off you’ll be because these things take time – maybe even years!

To help the people you care about handle the financial, administrative and familial consequences of your eventual passing, be as transparent as possible about what they can expect from your estate. Mismatched expectations can often cause trouble that could’ve easily been avoided if the news wasn’t coming as such a surprise.

Women Have Important Estate Planning Considerations to Address

Published on: June 22, 2015 | By McCulloch & Miller, PLLC

In the absence of a well-crafted estate plan, women can be affected more often and more directly than men. According to www.forbes.com, women live longer than men, on average, and tend to marry older spouses; this makes women three times more likely as men to be widowed at age 65.

With women commonly living longer than their male spouses, it is essential for women to have their financial and estate plans in order.

Northwest Herald’s article, “Home State Bank Emphasizes Estate Planning For Women,”says that a key aspect of estate planning is designating someone you trust to act on your behalf in financial and legal matters in the event you can't (even temporarily) due to illness or disability. Designate this person in a durable power of attorney.

Don’t Forget, Houston! Time for Estate Planning

Published on: June 2, 2015 | By McCulloch & Miller, PLLC

Make it a point to learn about the factors and areas that must be addressed in estate planning in order to maximize, protect and preserve your legacy the absolute best way.

You don’t have to be ultra-wealthy to have an estate plan.

The Kokomo Perspective’s May 16 article, “Don’t Forget About This,” reminds us that the ultimate goal of estate planning is to pass on as much of your unused assets with the least amount of taxes, expenses, fees and time—and do it as privately as possible. You want to protect and preserve your legacy for your family, loved ones, and charitable causes.

Estate Planning Isn’t Just for Older Adults

Published on: May 26, 2015 | By McCulloch & Miller, PLLC

"A lot of people think this is just about elderly parents, but it's a big issue for people with adult children away at school or on their own as an unmarried adult," said Carnick, president of Carnick & Kubik Personal Wealth Advisors. "Who's going to speak for them if they get in an accident?"

A recent Chicago Tribune article, titled “Checklist for updating, organizing estate planning documents,” reported some interesting survey results that show many adults are very unprepared and unaware when it comes to estate planning.

The Tribune reports that a new survey of 1,000 adults for www.caring.com shows these startling figures:

5 Estate Planning Must-Haves for Houston Singles

Published on: May 18, 2015 | By McCulloch & Miller, PLLC

"Everyone of majority age needs at the least a will, a health care directive and a named power of attorney," says Mike Sena, a certified financial planner with White Street Advisors, a money management firm. "The express purpose of estate planning is to make things as easy, as inexpensive and as simple as required for loved ones, friends and associates left behind. Every situation, every life is unique and some of us need more than others when it comes to estate planning."

Say that again. Everyone needs estate planning? Even singles?

You got it. But what estate planning items do Houston singles need the most?

Team Houston: Who Are Your Estate Planning Team Mates?

Published on: May 12, 2015 | By McCulloch & Miller, PLLC

If a Loved One or you have an estate plan, or even part of one, then some team members already are on board via the planning process and likely are actively serving or are nominated in the documents. They can have roles in the testamentary will, trusts, business purchase agreement, powers of attorney, medical directives or any of the other estate-planning instruments created during life.

Some team members are fee-based professionals, while others can be volunteers. In many instances, not all of the specialties will be required. Your estate planning team should consist of the combination of members that best suits your situation.

The Myrtle Beach (FL) Sun News recently published an article titled “Assembling your team for estate management”which reminds us that one person or a firm can serve in more than one fiduciary or team-member role.

Twisted Sister Drummer’s Death Leaves Tangled Mess

Published on: May 8, 2015 | By McCulloch & Miller, PLLC

When Twisted Sister drummer AJ Pero died on March 20, it caught his fans and bandmates by surprise — and Pero’s own lack of estate planning has reportedly thrown his family into chaos as well.

Dee Snider stated in an article on the website ultimateclassicrock.com “not only did AJ Pero have a family history of heart disease, which he allowed to go unchecked, but he did not have a will, left behind two ex-wives, a longtime girlfriend, four children between the three of them and a mess of an estate to be sorted out.”

Now the article, titled “Twisted Sister Drummer AJ Pero Died Without a Will,”says there’s plenty of infighting, mistrust, and dissension among the family members about how to handle AJ’s estate. “What a mess.”

Houston Millennials Require New Financial Planning Strategies

Published on: May 1, 2015 | By McCulloch & Miller, PLLC

Financial planner Joe Pitzl, 34, says Millennials like himself have a different way of absorbing information than their parents and grandparents, and as a result planners in that age group take a more collaborative approach.

As reported in a recent USA Today article, titled “For Millennials goal is financial freedom,” some financial planners are finding that Millennials prefer to work with those who understand their generation. They don’t respond to the same advice given to their parents, and they’re really looking for coaching on financial health as opposed to traditional financial strategies.

This is a group that’s probably going to have several jobs in their lifetime and is used to being able to get answers with the click of a button. Many Millennials also may have a ton of student debt and may have had trouble finding a job which means that the financial strategies that worked for their Baby Boomer or Gen X parents might not fit their circumstances.