Houston Estate Planning and Elder Law Attorney Blog

Four Quick Facts About the U.S. Tax Court

Published on: December 5, 2014 | By McCulloch & Miller, PLLC

Recently, I attended the American Association Attorney-Certified Public Accountants (AAA-CPA) symposium at the United States Tax Court in Washington, D.C. I heard U.S. Tax Court Chief Judge Michael B. Thornton discuss court operations in the context of assisting taxpayers "get their day in court." Chief Judge Thornton stressed that the Tax Court is considered a "people's court" and the operations of the court strive to be user-friendly for taxpayers.

A few facts about the U.S. Tax Court:

1. A tax case can be filed in the U.S. Tax court without the taxpayer paying the contested tax PRIOR to the proposed Tax Court hearing.

Plan Wisely for Medicaid or Else! One State’s Warning

Published on: December 4, 2014 | By McCulloch & Miller, PLLC

This case has drawn plenty of attention due to its legal and financial implications. Essentially, the case has escalated to the point of a federal judge warning state regulators that she would consider issuing an order to drop Ohio from Medicaid enrollment altogether, leaving the Buckeye State without federal funds to provide medical care for its elderly residents.

The State of Ohio is penalizing seniors by refusing to grant them long-term care benefits because a spouse or close relative has purchased a Medicaid-compliant insurance annuity. Medicaid administrators in Ohio say that an elderly nursing home patient is not entitled to long-term care benefits as long as he or she has a relationship with an individual who has purchased an annuity.

Other cases have been filed in federal courts in Ohio, and one federal judge has warned Ohio officials that she may hold them in contempt if they don’t follow federal law. The latest lawsuits filed against Ohio’s Medicaid administrators were brought by three elderly women whose husbands used their retirement accounts to buy annuities, which State Medicaid investigators say is illegal.

Does Your Houston Estate’s Library Hold Great Value?

Published on: December 3, 2014 | By McCulloch & Miller, PLLC

Managing an estate can be complicated and overwhelming, but libraries can often be sources of hidden value, and thus should not be ignored. There's always a chance that tucked away in that library are a few rare first editions or hard-to-find antique items. But if you're facing hundreds of volumes and you have little experience with books, where do you start?

Libraries and rare books may not be your idea of a good inheritance, but they can actually be hidden treasures if you do your research. A recent JD Supraarticle, titled “California Estate Planning: What to Do if You Inherit a Library,” warns against failing to value books that are left as part of an estate.

You never know if the library has tucked away an inscribed first edition of “For Whom the Bell Tolls” by Ernest Hemingway. That’s going for $8,500 on Ebay right now. Or maybe a signed J.D. Salinger “The Catcher in The Rye.” Asking price for this is only $55,000 these days. These rare first editions or hard-to-find antique items are out there. If you are left with the responsibility of sorting through a collection containing hundreds of volumes, and you have little experience with books, where do you start?

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."

Planning for Death Is Unpleasant; Critical for Houston Families

Published on: December 1, 2014 | By McCulloch & Miller, PLLC

Once someone dies there is much work to be done. These are a few suggestions to help you get administratively organized for death.

To make death easier for all involved, it’s critical to plan some of the issues related to death far in advance with some contemplation to make everything go as smoothly as possible when a loved one passes away.

When a loved one dies you have to remember IRS deadlines, Social Security Administration requirements, compliance with state laws, and dealing with other grieving family members. There’s also the chance you might have some relatives who feel entitled to more or different assets.

Helpful Houston Estate Planning Add-Ons: A Letter of Instruction

Published on: November 28, 2014 | By McCulloch & Miller, PLLC

Where there’s a will, there’s a way—and sometimes an ugly family feud. Families are consumed with grief when a loved one dies, but unfortunately certain legal and organizational tasks that arise can’t be ignored or put off for long. But you can ease the burden on your loved ones by making some simple preparations in addition to a will.

Sometimes your family may need more detail than what is normally included in a will. To get in front of hard feelings and potential conflicts over your personal possessions, think about adding a letter of instruction to your will. This is an informal document you can draft which isn’t legally binding, but can be a helpful guide for your family.

A recent article in The Wall Street Journal, titled “When a Will is Not Enough,” suggests that you organize your letter into three sections: funeral arrangements, financial and personal affairs, and distribution of personal effects.

The More Candles on the Cake, the Higher the Risk of Driving Accidents

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

Auto accidents are the second leading cause of injury-related mortality among people 65 and older. “It is everyone’s responsibility to identify and assist a mentally impaired driver,” she said.

Another birthday coming up for an elderly loved one? It may be time to evaluate their driving skills, especially in Houston.

A recent article in the Claims Journal, titled “Police, Doctors Receive Elder Driver Assessment Training,” describes an educational program called Training, Research and Education for Driving Safety (TREDS). The program is designed to reduce the number of fatalities involving older drivers and to extend the time seniors can drive safely.

Houston Residents Should Aim Straight For a Gun Trust!

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

By putting ownership in trust and designating a knowledgeable person to oversee an individual’s firearms, the chance of such issues arising is minimized. Plus, paperwork requirements for transferring guns are streamlined and the trust prevents information about a valuable collection that might be of interest to thieves from being made public during the probate process.

A recent ABA Journal article, titled “Got valuable firearms? A gun trust can be a helpful estate-planning tool,” explains the benefits of a gun trust.

The thinking behind this strategy? By putting gun ownership in trust and naming a knowledgeable person to look after your firearms, the chance of trouble and issues coming into play upon your incapacity or death is minimal.

“Sweetheart Wills” for Houston-Area Couples with No Children

Published on: November 25, 2014 | By McCulloch & Miller, PLLC

Recently, I outlined a basic estate plan for a couple with children. Now, a reader in California asks: “What about marrieds without kids?”

Married without children? What essential estate planning tasks should you focus on?

The Wall Street Journal says, in an article titled “Estate Planning for Childless Couples,” that you have two main estate planning tasks: (i) decide what will happen to your property after you die; and (ii) specify the individual who will oversee your medical and financial affairs if you’re unable to do so.

Houston Business Owners: Tax Tips-N-Tricks for 2014

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

Continual planning is essential for finding opportunities that will reduce the financial burden. Several options exist to help corporations retain wealth and reduce taxes legally.

At the end of the business year 2014, companies will be examining data to see if there are any tax savings available on defined contribution, benefit, cash balance and 401(k) plans.

A recent article on the InsuranceNewsNet website, titled “Important Tax-Planning Tips for Business Owners In 2014,” states that retirement packages can decrease tax liabilities by deferring income. The original article notes that gathering this data will allow business owners to make informed decisions about potentially accelerating deductions and deferring income into the next quarter. Compiling financial projections and reports is extremely important for proper tax planning.