Inheritance Planning

Longer Lifespan Can Affect One’s Inheritance

Published on: December 26, 2014 | By McCulloch & Miller, PLLC

Adult children have historically expected to inherit from their parents while in their 40s or 50s, yet now many aren’t doing so until their 70s or even 80s, as their parents live into their 90s or beyond.

When should you expect to receive your inheritance?

According to the Social Security Administration, a 65-year-old man now has a life expectancy of 84, and a 65-year-old woman about 87. These increases in longevity have created changes in financial planning—like retirement calculations and long-term care insurance costs. However, as a Barron's article titled "When Longevity Upends Trusts" notes, these numbers are just beginning to affect trusts and estates.

Trusts Remain Good Ideas for Houston Families

Published on: December 10, 2014 | By McCulloch & Miller, PLLC

Irrevocable trusts, which are virtually unchangeable once established, have decreased in use, but revocable trusts, over which the grantor retains control, still flourish.

A recent Cincinnati.com article, titled “Trusts remain useful tool in estate planning,” addressed some confusion over the use of trusts in light of recent changes in the law.

One very popular estate planning tool, the revocable trust, remains very much the foundation for many estate plans and is used frequently. In this arrangement, the maker of the trust (the person planning his or her estate) retains total control over the assets, but bypasses probate should the trust maker become incapacitated or die.

Providing for Houston Heirs, Regardless of Wealth

Published on: December 2, 2014 | By McCulloch & Miller, PLLC

“Regardless of how much wealth you have,” says Gregory Popera, a private wealth adviser with Bank of America Merrill Lynch, “having some type of estate plan and financial power of attorney are sort of the financial building blocks to make sure your assets go where you want them to go.”

Making sure your heirs are taken care of once you pass is an important goal of estate planning. And you don't have to be among the wealthy to create financial stability for your loved ones.

The Washington Post recently discussed practical strategies for financial security in an article titled "How to pass money on to your children."

Consider These Inheritance Planning Questions for Houston Estates

Published on: October 16, 2014 | By McCulloch & Miller, PLLC

Making decisions about the disposition of your assets can be an emotionally fraught and time-consuming process. Take small steps and seek expert guidance to realize your plans for the financial care of your families.

Who gets what when it comes to your estate? The process of distributing your assets is no easy task.

A recent Forbesarticle, titled "Estate Planning 101: Picking Your Heirs," provides some very useful instructions on basic estate planning. The article lists a series of questions that can help you organize your thoughts and prioritize your planning.

Houston Parents Can Structure an Inheritance For Their Children

Published on: August 19, 2014 | By McCulloch & Miller, PLLC

Leaving even a small inheritance to your children requires planning. Regardless the size of your estate, structuring an inheritance properly can avoid problems and help your beneficiaries use your hard-earned assets more wisely.

Last year, AARP included an article in its materials titled, "How to Leave an Inheritance to Your Kids." Among other things, the article provides several tips on how to properly set up your estate plan to leave an inheritance to your children.

One tip is to manage expectations. Talk to your children so they will have a better understanding of your assets and what they may expect as their inheritance from them. Another tip is to treat all of the children equally. This will reduce cause for arguments and hurt feelings. This equal treatment should also include sharing responsibilities when it comes to settling your affairs, not just the division of assets. If, however, you decide to split your assets in some manner other than equal shares, take the time to explain your reasoning.

Breaking Taboos – It’s Time to Talk About Your Houston Estate Plan

Published on: August 18, 2014 | By McCulloch & Miller, PLLC

If there is a boogeyman when it comes to family conversations about inheritance, it is not death. It’s the $40 trillion that financial advisers say their baby boomer clients are going to pass to their children either in an orderly way — or in a chaotic mess. A report by UBS on why families should talk about inheritance confirms the reluctance of people to talk about death and money.

Remarkably, a recent New York Times article, titled "What’s Almost as Certain as Death? Not Talking About the Inheritance," noted that it is easier to have a will (83% do) than it is to discuss the will with your children (only half). It is even more difficult to give them details about those assets (34%).

Regardless their levels of financial wealth, those surveyed were equally deficient when it comes to discussing estate plans with their children. Roughly 55% of people with more than $1 million talk to their children about an inheritance, and 53% of people with fewer than $1 million did. As you might expect, the majority of parents want the transfer of money to their children to go smoothly (84%) without creating bad feelings among siblings (66%).

Don’t Let an Inheritance Come Between Your Houston Family

Published on: June 27, 2014 | By McCulloch & Miller, PLLC

Everyone knows someone who hardly speaks to his brother or sister or aunt simply because of a misunderstanding over an inheritance.

Inheritance planning can be a direct mode of expression, whether of appreciation for a person or an extolling of virtues. But can these expressions be taken the wrong way depending upon who gets what? As a family-loving person, you can express yourself far more subtly by ensuring that your heirs and the entire family can come together even after your passing and that no fight is to break out with regard to the inheritances you leave.

Estate planning for the entire family is a difficult balancing act. It can take a good deal of thought, but is well worth the effort. Forbes recently offered a bit of wisdom on the topic and a goal too: “How To Make Sure Your Children Keep Speaking To Each Other After You Die.”

Inherited Stock and Taxes – What You Need to Know

Published on: June 24, 2014 | By McCulloch & Miller, PLLC

If you sell stock you inherited, the tax bill is keyed to its value at the time of the original owner’s death.

If you’ve just inherited stock or if you’re set to leave behind stock to your heirs, then it is well worth your time to get an idea of the tax treatment you will get and what it can mean in the context of your overall estate plan.

There a volumes to read on the topic of inherited stock, but thankfully Kiplinger posted a handy little note and Q&A on the topic last month with “The Tax Hit on Inherited Stock.” Essentially, stock is a partial ownership of something greater (a company) and the value of the stock is based on the company which is based on market which is based on when you buy and sell or how long you own the stock and/or who held the stock at each juncture. In other words, there are more than a few variables, as you well know, and these variables are what can make for a tax headache.

Houston Residents: Will Your Wealth Continue On?

Published on: May 22, 2014 | By McCulloch & Miller, PLLC

To make that wealth last forever, you're probably going to need future generations to replenish that wealth.

If you have wealth to pass on to the next generation, have you hoped that your wealth will continue on for generations to come? It's a tough goal to have, considering you'll be depending on the next generation to keep the wealth going instead of squandering it away. However grand your goals may be, there is a startling trend of inheritances that fail to lift up the family.

The startling trend of failed inheritances is known as "shirtsleeves to shirtsleeves", and Reuters picked up on the issue in a recent article titled “How wealthy families blow their assets.” It seems the kinds of problems that can arise within a family are multifaceted, but the numbers tell a similar story: inheritances have a failure rate at 90 percent by the third year.

Houston Parents: Give The Inheritance Now Or Later?

Published on: May 14, 2014 | By McCulloch & Miller, PLLC

Ultimately, the decision about whether to leave your children money now or later depends entirely on your financial and family circumstances.

Deciding whether or not to leave an inheritance is only part of the equation. When should you give it – now or later?

Forbes recently tackled this difficult issue a short while ago in an article titled “Should I Gift Money To My Children Now Or Later?”