Houston Estate Planning and Elder Law Attorney Blog

Crummey Trusts: Viable Tool for Houston Families?

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

Actually the trusts are Crummey trusts named after one D. Clifford Crummey who won a decision in the Ninth Circuit in 1968, when I was just a high school lad. Israel and Erna Mikel were just in Tax Court showing how powerful the Crummey power can be as they used it to shelter over $1.4 million in transfers to their family trust from gift taxes. An arbitration clause that called for the use of a religious court caused the IRS to challenge the validity of the exclusions, but the Tax Court ruled in the taxpayer’s favor.

Trusts can have pretty funny names. Take the Crummey trust for example – doesn’t sound very good, does it? Who wants a “crumby” trust? Let’s explore this tool further.

A recent Forbes article, titled “Religious Arbitration Clause Does Not Hurt Million Plus Gift Tax Exclusion,” reminds us that there’s an annual exclusion from gift tax. Reminder: every year you can give the annual exclusion amount ($14,000 this year) to as many people as you want without any gift taxes or disturbing the unified credit against transfer taxes. However, to qualify for the exclusion, the gift has to be of a “present interest”.

Houston Families: Be Aware of Elder Fraud

Published on: May 29, 2015 | By McCulloch & Miller, PLLC

A Walnut Ridge woman was arrested Thursday for forging a will after someone else had died.

Another scammer made the news recently, this time involving a forged will.

KAIT reported the story in an article titled "Woman arrested for forging new will after someone died."

Guardianship Selected for Bobbi Kristina Brown

Published on: May 28, 2015 | By McCulloch & Miller, PLLC

“We are delighted to inform the public that the court has appointed Bobby Brown and Pat Houston as co-guardians of Bobbi Kristina Brown (‘Krissi’),” read a statement issued by David Long-Daniels, counsel for Pat Houston and Cissy Houston, and Christopher Brown, an attorney for Bobby Brown. “Both Mr. Brown and Ms. Houston are jointly responsible for decisions related to Krissi’s care and medical needs.” A court-appointed attorney, Bedelia Hargrove, will act as a conservator for the 22-year-old.

The court-appointed attorney specializes in fiduciary litigation, probate and estate administration, estate planning, personal injury and wrongful death cases, as well as general civil litigation.

As conservator, the attorney “is responsible for Krissi’s assets, including her likeness, rights and legal claims,” according to the statement read by attorneys for the family.

Houston Investors Should Organize Finances for Ease in Planning

Published on: May 27, 2015 | By McCulloch & Miller, PLLC

There are several corners of your financial life that can be simplified through consolidation.

If you feel like your finances are all over the place and hard to manage, you just need to take a moment to de-clutter and get a system going. Also, it’s ok to ask for help!

A recent article in The Tahoe Daily Tribune’s, titled “Simplify your financial life,”provides some very helpful advice on de-cluttering and organizing your important information:

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:

Inheritance: Later vs. Giving Now?

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

Most of us don’t want to just enjoy our retirement and have enough money for old age, but to leave something behind as well. But what's the best way to do that? Should you leave an inheritance, or give your money away while you're still around?

Let’s take a look at the tax implications of both scenarios.

A recent MarketWatch article, titled “Why it’s better to give than to bequeath,”reminds us that with both gifts and inheritances, it’s the person giving the money who pays the tax. So, for example, if you give a gift or an inheritance to your children, they don’t pay taxes—it will be your estate that has the tax liability and must pay. However, there are huge tax differences between gifts and inheritances. The gift tax is exclusive: it’s on top of the gift.

Have You Selected the Guardian of Your Minor Children?

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

No will? If you are married with young children and both parents die who becomes the children’s guardian will be up to the state’s court system.

If you do not have a will, Texas estate laws and the probate judge may decide who will get your assets if you die. And if you are married with young children and both you and your spouse pass at the same time, the judge also gets to decide who will be the children’s guardian. It’s that simple, says a post on the CBS Boston website titled, “Estate Planning For All.”

Think about that.

South Texas’ “Godfather of Movies” Still Making Headlines in Contested Will

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

Rubin Frels is considered by some as the "godfather of movies in South Texas." Although he has been dead for almost a year, the prominent Victoria businessman's estate is still being legally contested by two of his longtime associates, Brad Richards and Gary Dunnam.

The Victoria (TX) Advocate has reported all of the details in its article titled“Prominent Victoria businessman's will contested.”

Dunnam, who knew Frels since at least 1971, says the 2001 will is valid. He also claimed Richards, who was Frels' partner of 15 years, isolated Frels from his friends.

Law Enforcement Offices Join in Fight Against Elder Abuse

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

The Long Term Care Special Prosecutions Unit was created one-year ago and since then, special agents have opened 113-cases, filing five felony charges since last summer. San Diego families in search of quality care are now getting more allies in the fight against elder abuse.

As abuse against seniors is on the rise, the need for elder abuse resources is crucial to fight the mistreatment of our loved ones. We hope Houston-area enforcement agencies follow the lead established in San Diego County.

"Elder abuse is one of those areas that is under reported for a lot of reasons and we've shined a spot light on it here in San Diego County," District Attorney Bonnie Dumanis told sandiego6.com in a recent post titled “D.A. launches new resource to combat elder abuse.”

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?