Houston Estate Planning and Elder Law Attorney Blog

Estate Planning Isn’t a “Cookie Cutter” Approach for All Millionaires

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

A recent survey from CNBC.com shows that there are differences in how the wealthy perceive the need for estate planning, and not all millionaires behave the same way. There are differences between families at the $1 million – $5 million level and those with $5 million and more. However, a significant number of millionaires do not have an estate plan, and part of that may be due to estate planning fatigue.

According to a poll of 750 millionaires, individuals with $5 million or more (68%) were more likely to seek help with estate planning, compared to individuals with $1 million to $5 million in assets (61%). The survey, conducted by CNBC.com, reports their findings in a recent article: “Wealthy suffer from 'estate-planning fatigue'.”

The political break down was as follows: Republicans (68%) were more likely to use an estate planning expert to create an estate plan than Democrats (61%) or Independents (58%).

Retirement Planning: Use Caution on Houston’s Bumpy Roads

Published on: August 17, 2015 | By McCulloch & Miller, PLLC

With two-thirds of Americans experiencing disruptions to their retirement planning resulting from divorce, major illnesses, unemployment or business troubles, the road to retirement has become bumpier than ever, according to a new TD Ameritrade survey. The challenges add up to $2.5 trillion in lost retirement savings. The news is gloomy, but knowing that there are and will be problems on the road to retirement reminds us that planning should include these kinds of problems, and responding to financial disruption in a timely manner is necessary for successful retirement planning.

The website Real Deal Retirement gives us three ways to stay on track during our journey toward retirement. The article, titled “Retirement Interruptus: 3 Ways To Prevent Disruptions From Derailing Your Retirement Plans,”gets right to the point:

1. Consider Alternate Retirement Realities. Remember that an assessment of your retirement prospects from a retirement calculator, doesn’t mean that your retirement’s going to go precisely to that plan. Just like the weather forecast, things can change. “The best-laid plans of mice and men…”

Are Bitcoins Part of Your Houston Estate?

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

To the digerati – the elite of the technology world – Bitcoins are as valuable as the dollar or any other state-sponsored currency. But the rules are still under development for estate planning purposes, and planning for an estate that includes Bitcoins must take this into account.

Most people know what Bitcoins are, even if they don’t use the digital currency that has become popular in the online world. The theory behind Bitcoins was that the world was ready for digital currency, an electronic peer to peer cash system that would eliminate the use of money created by countries.

Bitcoins were to be untraceable and uncontrollable by any government.

NY Psychiatrist Accused of Undue Influence Over Vulnerable Patient

Published on: August 13, 2015 | By McCulloch & Miller, PLLC

The classic story of a vulnerable wealthy elderly person being influenced by a caretaker who seeks to enrich him or herself has been updated in a dispute between a disinherited brother and psychiatrist/girlfriend of a Texas woman who is alleged to have been manipulated out of millions.

A successful and wealthy attorney with undisclosed health problems took a medical leave of absence from her law practice and traveled to New York City for treatment by a psychiatrist. Five months after treatment began, according to a statement submitted in court, things became complicated.

Several years later, the heavily-medicated attorney, Amy Blumenthal, passed away. What is alleged to have happened during those years might shock some people.

Are Your Houston Beneficiary Designations Current?

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

For many Americans, the majority of non-real estate assets are their retirement accounts and life insurance policies. However, a large number of people forget to update their designated beneficiaries, which can lead to key assets going to unintended beneficiaries. An unusual fact pattern cited here reminds us of the importance of keeping beneficiary designations up-to-date.

Like millions of hardworking Americans, Austin Hardy's employer managed his retirement plan. Hardy may have been absent on the date that the HR department explained the importance of naming a death beneficiary for his plan; he either forgot or neglected to designate a beneficiary.

When he passed away, Hardy’s employer did the right thing: it followed the default rules of the plan. Those rules stated that if no surviving spouse or partner existed, then the plan should pass to a surviving child, whether biological or adopted.

Daughter’s Disinheritance Ruled “Unreasonable;” Mother’s Will Reversed

Published on: August 11, 2015 | By McCulloch & Miller, PLLC

In most cases, as long as basic principles are followed, a person is entitled by law to leave whatever he or she wishes to their heirs. There are no requirements to leave assets to adult children, but a recent ruling in a London Court of Appeals may change this.

When Thomas Jackson passed away in an industrial accident, he left behind a wife and a daughter who was only two months old. He left a small estate from his earnings and compensation for his death that went to Melita Jackson, the mother of his daughter, Heather Ilott.

At the age of 17, Ilott eloped with her teenage boyfriend. Despite the fact that the relationship continued for well over 40 years and the couple had five children, Melita Jackson never forgave her daughter and spurned all attempts at reconciliation.

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.

What Happens to Your Houston Facebook Page Upon Your Death?

Published on: August 7, 2015 | By McCulloch & Miller, PLLC

Facebook offers a feature that will allow a designated person to have increased access to a Facebook account when its owner passes away. Facebook realizes there is a growing need to support those who are grieving the loss of a loved one and those who want a say in what happens to their account after death.

Facebook responded by launching a feature called: "Legacy Contact." This feature may help your loved ones through the grieving process in the event of your death and allows you to designate what will happen with your account upon passing.

If you are a Facebook user, you may want to go into your account now and designate your Legacy Contact to manage your account when you pass away. Here is how it works when someone passes away:

You Are An Executor: What to Do and NOT Do

Published on: August 7, 2015 | By McCulloch & Miller, PLLC

An executor of an estate can easily get into trouble for not doing certain things, but an executor can also find themselves in trouble if they do certain things. An experienced estate planning attorney can help with navigating the do’s and don’ts of the executor’s tasks.

There are no lack of guidelines to help an executor or personal representative of an estate to understand the specific tasks and responsibilities that he or she has when managing an estate. Most guides, available online, at personal finance websites, in magazines and books, are written with an eye to the positive and provide a good outline of the tasks that need to be taken.

That can leave a lot of important information out, however, if the executor is not also given advice about what not to do doing during the process.

Can Estate Plans Control Kids After Your Death?

Published on: August 5, 2015 | By McCulloch & Miller, PLLC

It is not unusual for wealthy parents to guide their children in their life choices while they are alive, and it’s also not unusual to control how heirs spend their inheritances. But using an inheritance as an incentive to reach specific benchmarks is a new one on us – and perhaps typical of the type of personality it takes to amass great wealth.

When New York real estate tycoon Maurice Laboz passed away, he left behind an estate worth approximately $35 million dollars, two daughters, 21 and 17, and an unusual estate plan.

As is often the case, Laboz did not leave all of that money to his daughters right away. Instead, they must wait until they are 35 years old to receive their inheritances.