Houston Estate Planning and Elder Law Attorney Blog

Health Care Costs: Integral Part of Retirement Planning

Published on: February 6, 2015 | By McCulloch & Miller, PLLC

Consulting financial and tax advisers as part of planning the retirement process is essential to get the health-care piece covered. Enjoying truly golden retirement years means a lot of different things to different people, but it should include planning for long-term health care now so we obtain the end-of-life care we desire without becoming a burden on our children or the state.

According to a recent article in cincinnati.com, titled “Consider health care when retirement planning,” long-term health care may be a considerable expense during our retirement years, with most of this spent during the last three years of life.

Health care spending has outpaced inflation over the past decade—from a 6percent increase to just 2.5 percent for core inflation.

Houston Families Have Tax Advantaged College Savings Options

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

There are three basic tax advantaged vehicles to help save for college: 529 plans, Coverdall Education Savings Accounts and Roth IRAs.

Saving for college? Consider three tax advantaged tools to help fund your child’s or grandchild’s education: 529 plans, Coverdall Education Savings Accounts and Roth IRAs.

A recent Forbes article, titled “How to Save for College,”reports that each of these plans allows the funds to be used for college tuition and fees, and some also permit the funds to go towards books and room and board expenses. In addition, the Coverdall accounts allow you to use the funds to pay for K-12 schooling. 529 plans have the fewest restrictions and so the broadest appeal.

Is It Possible to Take the IRS to Tax Court?

Published on: February 4, 2015 | By McCulloch & Miller, PLLC

Actually, the answer is yes. The Tax Court is an actual federal court and not, as some people think, affiliated with the IRS. At Tax Court, the IRS is a party to the matter just like the taxpayer.

If you’ve got beef with the IRS, maybe you should head to court. Didn’t think that was possible, did you?

Contrary to popular belief, the Tax Court is a real federal court and not a tribunal run by the IRS. The IRS is a party in the case just like any taxpayer in the Tax Court, says a recent Forbes article titled “Taxpayer Advocate Reports On Top 10 Most Litigated Tax Issues.”

Houston Families Should Monitor New Tax Proposals

Published on: February 3, 2015 | By McCulloch & Miller, PLLC

What should you have expected to hear during the State of the Union address in January? Key proposals from the President include the following.

President Obama addressed the country in his January State of the Union speech about key proposals he has for our government.

Forbes recently detailed some of the key proposals from the President in its article titled “President's New Tax Proposal Would Hit Wealthy, Benefit Middle Class.”

Florida Puts Focus on Elder Rights and Guardianship

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

This year, two legislators who pressed for reform in 2014 are back with new bills they believe have stronger chances of success, as the excesses possible within Florida's guardianship system become more widely known.

A recent article in The Herald Tribune, titled “Legislation aims to curb abuses in guardianship system,” reports that two of Florida’s legislators are addressing the excesses possible within Florida's guardianship system. Florida law has a list of 14 rights that an elder may surrender as a result of the guardianship process. These include the rights to marry, vote, manage finances, determine where to live and accept medical care.

The Florida bill includes these types of actions:

Houston Planners Should Note New Estate Tax Exemption

Published on: January 30, 2015 | By McCulloch & Miller, PLLC

In 2015, only estates worth more than $5.43 million per individual would owe federal estate taxes if the estate owner dies this year. That's up from last year's $5.34 million estate tax exemption. (In addition, the federal lifetime gift tax exemption also rises to $5.43 million in 2015.)

2015 brings new changes to the estate tax exemption. Experts agree that this change (and others) means that a fresh look at estate planning and asset protection should be top priorities for individuals planning for retirement or who are already retired.

The Investor's Business Daily says this could be good news in its article“Estate Planning For 2015: How To Protect Assets From Taxes” as it could possibly create better asset protection. However, the article also warns of the complexity of these changes, and that you should consult an experienced estate planning attorney to ensure that your particular circumstances are addressed.

Seven Financial Tips for Houston Families

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

Here are seven things you can do this month to positively impact your finances all year.

Want to start the New Year off right when it comes to your finances? The Las Vegas Review-Journal article, titled “7 ways to give your finances a facelift in January,”cites some things you can do this month to positively impact your finances all year.

Establish an estate plan. If you have a spouse, kids, elderly parents—if you own your own home, a savings account, or investments—you should have an estate plan. Estate planning will save your loved ones additional strain at a difficult time, and ensure your wishes are carried out after you pass away.

Rent or Sell Houston Home? Downsizing for Aging Parents

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

As the executor of [my mom's] estate, I'm trying to help her decide what to do with the house. Let another family member live in it who couldn't pay rent but could help with upkeep? Rent it out for market value? Or sell?

If she hasn't already, an article in The LA Times titled “Consider tax implications when downsizing,” recommends that she needs to hire an experienced estate planning attorney who can help her evaluate her options.

If she sells, she could possibly be in for a shock because there might be a considerable capital gains tax on the sale. Federal law permits a set amount of capital gains on the sale of a primary residence ($250,000 per person) to be excluded from income. However, anything above that amount would be taxed heavily as a capital gain.

Four Rules to Know about 2015 Estate Taxes

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

Here are four rules you need to know about the estate tax for 2015.

The estate tax exclusion is now $5.43 million. The federal estate tax applies only to those whose taxable estates exceed a certain amount. The U.S. has a unified gift and estate tax system, so if you make taxable gifts during your lifetime you'll use up some of this $5.43 million in advance. In addition, you will need to file a gift tax return even though you won't have to “pay” a gift tax at the time you make the gift.

The annual gift tax exclusion is still $14,000. This an annual exclusion makes most gifts nontaxable, so you can give up to $14,000 in cash or property to anyone again this year.

Tips for Houston Families Caring for Aging Parents

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

Adult children who become caregivers often pay a steep price. However, with some smart strategies, you can avoid sabotaging your financial future.

What can you do ahead of time to help ease the financial burden of caring for your aging parents?

Look into potential tax breaks.