Houston Estate Planning and Elder Law Attorney Blog

Medicare 2016 Premium Concerns Loom

Published on: October 23, 2015 | By McCulloch & Miller, PLLC

As a direct result of complex relationships between Social Security and Medicare and a number of other unforeseen issues, 2016 will be an expensive year for some seniors, according to Forbes' recent article, "Untangling the Medicare Premium Mess — And What It Means For You." Medicare laws require it to increase premiums annually to cover increases in per capita costs. This would typically be about $16, which most seniors can manage.

Except that 2016 will not be a normal year. Most retirees have their Medicare premiums deducted from their Social Security benefits, but because inflation was so low this year, there won't be a cost-of-living increase in 2016 for Social Security. And the law says that if Social Security benefits don't rise—you guessed it—neither can the Medicare premiums.

That means about 70% of Medicare beneficiaries won't see the premium hike. However, that leaves the entire burden of this year's Medicare cost increases on the remaining 30%. Those guys are going to be hit with 50% premium hikes.

Is Your Estate Plan In Place?

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

Perhaps the biggest reason to have an estate plan is to decide who will raise and care for your children if you and your spouse should both pass away. An experienced estate attorney who is knowledgeable about guardian ship laws in your state can help you make a plan, as noted in Houston (MO) Herald's recently published article, "Establish an estate plan before death comes knocking."

It is easy to put off these tough decisions by thinking we have plenty of time, but the truth is that we really don't know how much time we're going to have.

It's also easy for disagreements and misunderstandings to occur when someone passes away, particularly when the ownership of assets isn't clear. A professionally drafted will and other estate planning documents can eliminate much of this stress and heartache. The cost of settling an estate may be high, but it's even higher if an estate plan isn't in place.

Planning Care for Houston Pets Who Outlive You

Published on: October 21, 2015 | By McCulloch & Miller, PLLC

Pam Miller, founder of a no-kill cat shelter and adoption agency, encourages pet owners to include family pets in their estate planning process. As part of her daily routine, Miller brought two cats to her shelter just days before their owner passed away so that they could find new homes, as described in The (Raleigh, NC) News Observer, "Providing for your pets after you're gone."

Caring for and finding new homes for the pets of the recently departed is something SAFE Haven does frequently, but there must be a plan and funds set aside. It takes planning and resources. Many folks make assurances that their pets will be cared for after their owners pass. After a loved one's death, with so many things to do, it's easy to forget about the pets.

Put a card in your wallet detailing how many pets you have and their location. It should include the contact information for your pet’s veterinarian, their favorite pet sitter, and a trusted friend to whom you've spoken about caring for your pets if something unfortunate occurs. If you want to do this and leave a trust for your pets, speak with an estate planning attorney.

Truce Reached Over WWII Bomber Jacket Battle When Taxes Due

Published on: October 20, 2015 | By McCulloch & Miller, PLLC

Long before America was officially involved in World War II, that is, before the Japanese bombed Pearl Harbor, there were Americans involved in the war. One group was the "Flying Tigers," an elite group of fighter pilots employed by the Chinese government in its fight against Japan. Phillip Epley, Sr., was a member of this group, more formally known as the American Volunteer Group. When Epley passed away in 2008, he left his entire estate, including his Flying Tiger jacket and other belongings, to his wife.

When she passed away in 2013, a dispute began over ownership of the jacket that Epley wore during the war. It's estimated value? $24,000. Penn Live has more on this story and the history of the Flying Tigers in "Rare WWII 'Flying Tigers' flight jacket focus of Pa. court battle."

Most of the memorabilia went to Epley's son, Robert Epley. However, one of the wife's sons, John Stull, removed the jacket from her home. Her other son, Daryl Stull, was named the executor of his mother's estate and repeatedly asked John to return the jacket. John refused.

Art Collections Can be Estate Tax Burden for Houston Families

Published on: October 19, 2015 | By McCulloch & Miller, PLLC

Americans love collections and homes across the country boast music collections, rock collections, sea shell collections and the list goes on. Often, these personal collections hold a great deal of sentimental value while their market value is nil. Typically, favored items are passed on to the family members who will treasure them while the collections’ value presents very little impact on the estate.

However, an art collection is different because works of art can be extremely valuable.

As the New York Times points out in "Estate Planning Can Get Tricky When Art Is Concerned," art collections require very careful estate planning. The biggest issue is that art is illiquid. If the estate tax is due, then the heirs have to come up with cash to pay it. This requires them to use other estate assets or to sell the art.

Estate Claims Nude Photos Disparaging

Published on: October 16, 2015 | By McCulloch & Miller, PLLC

Several nude photographs of the late artist Jean-Michel Basquiat were taken by his ex-girlfriend Paige Powell. The photographs, which were shown as part of an art exhibition in 2014, show Basquiat reclining on the bed, smiling at the camera. Subsequently, they were posted on several art websites.

One of those websites, Animal, posted the images in 2014.

The attorney for the artist's estate, however, recently sent a letter to the website demanding that the images be removed as they are disparaging to the artist. Powell claims that Basquiat was proud of his body and would want the photographs to be seen. Page Six reported this story in "Estate fighting release of Basquiat's nude photos."

It’s a Dog’s Life for Beloved Pet of The Simpsons Co-Creator

Published on: October 15, 2015 | By McCulloch & Miller, PLLC

Sam Simon, co-creator of The Simpsons, was a devoted owner of his rescue dog, Columbo. And Columbo has enjoyed sitting in the lap of luxury. One of Columbo's monthly bills was for acupuncture treatments, twice a week, at a monthly cost of $3,640. That was just one of his regular medical and therapeutic treatments.

Simon passed away earlier this year after a struggle with colon cancer. Most of his fortune was put in trust to be used to promote animal rights. Columbo, however, was given over to Tyson Kilmer, an animal trainer and Simon's friend. Now Kilmer and the trust that Simon created are in a bitter dispute over money to pay for the dog's care.

Kilmer claims that he needs $140,000 a year to maintain the same treatments that Simon gave Columbo. He claims that the trust refuses to give him the funds. The trust has a different story.

Contents of Will Publicly Announced British Actor Lord Attenborough’s Final Wishes

Published on: October 14, 2015 | By McCulloch & Miller, PLLC

Upon British actor and director Lord Richard Attenborough's death, the value of his estate and his last wishes were made public via his will. His estate in the United Kingdom was worth approximately £1.5 million, not including the value of any assets held in trust or any foreign assets.

However, his will also revealed that Attenborough requested that his body be cremated.

His wish was that one-third of his remains be placed at his Scottish estate and another third be taken to an estate in France. The final third of his remains he wants intermingled with the remains of his daughter and granddaughter at a church near Attenborough's estate in the UK.

Estate Planning for Blended Families Takes Special Consideration

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

Anytime a blended family includes children from prior marriages, estate planning becomes more challenging, as reported in The Meridian Star, in “Estate planning after a second marriage.” If there are young children, how can you ensure that the surviving spouse will take care of them? And what if you pass away and your surviving spouse remarries? One way to prepare for this possibility is to make a child the primary beneficiary of a life insurance policy, place certain property under joint ownership with the child or set up a trust for your children. But none of these steps are simple, and all require the hard conversation with your spouse and with an experienced estate planning attorney.

If you have a written a will, it may require an update. Be extremely specific about which heir gets what and state bequests convincingly. The more convincing your bequest, the less ambiguity and the fewer issues that will arise. Also, update your beneficiary designations for retirement plans, investment accounts, and insurance policies. However, if you’ve been divorced, you may be precluded from changing beneficiaries in certain cases. Talk to a qualified estate planning lawyer. Take a copy of your divorcee decree with you and ask if revising your beneficiary designations will violate it.

You can also take a look at irrevocable trusts, which can be used to provide for your spouse and your kids. Some people establish a separate property trust to provide for their spouse after their death and designate their real property to their children. Parents can also create irrevocable trusts to direct assets to particular children. These can be great estate planning vehicles because: (i) a trust agreement isn’t a public document; (ii) assets within irrevocable trusts are shielded from creditors and from inheritance claims of spouses of the adult children named as heirs; and (iii) an irrevocable trust represents a “finalized” estate planning decision—which guarantees that particular assets transfer to a parent’s biological children. In addition, irrevocable trusts are rarely undone.

California’s Residency Laws Played Heavily in Elder Financial Abuse Claim

Published on: October 9, 2015 | By McCulloch & Miller, PLLC

An elderly many claimed that his trust was mismanaged and he brought action for financial elder abuse and other claims against his banking institution. A California court ruled that because the gentleman had established residency in California and Australia, he was not protected under the state’s welfare code.

A judgment from the Santa Barbara Superior court was affirmed in an opinion by Judge Steven Perren of the California Court of Appeals. The court held that as a non-resident, Galt lacked standing to pursue such a claim for financial elder abuse because of his non-residency. This decision was reported in The Metropolitan News, in “Man, 85, Isn’t an ‘Elder,’ Under Statute, C.A. Rules.”

California Health and Welfare Code §15610.27 defines an “elder” as “any person residing in this state, 65 years of age or older.” Further, the Court of Appeals said in its opinion, that “[b]y his own admission, Galt does not reside in this state; consequently, under the plain meaning of the statute, he is not an elder.”