Houston Estate Planning and Elder Law Attorney Blog

Estate Planning for Houston Families without the Stress

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

Wouldn’t knowing someone will step in if you become incapacitated create a little peace of mind? Wouldn’t knowing that your family is taken care of create even more peace of mind? Wouldn’t knowing there is a plan in place – a plan you developed – if something happens to you take a significant weight off your shoulders?

Estate planning can do a lot of things for you, but one of the most valuable takeaways is peace of mind.

A recent Forbes article, titled “11 Fundamental Elements of a Stress-Free Estate Plan,” provides practical advice on how to design a plan that protects your assets and provides for loved ones. While everyone’s individual needs are a bit different, there are some basic components you need to examine along with deciding who gets what.

Budget Suggestions for Houston Retirees

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

The secret, experts say, is to find a balance between keeping some comforting traditions and letting go of ones that obviously no longer fit.

How do you manage the holidays on a retiree budget? If you are a retiree or will be retiring in the coming year or years, then this article may be for you.

Experts say that the key is to find a balance between keeping some of the traditions and saying goodbye to those that no longer fit.

Retirement Planning Changes for Houston Families to Note in 2015

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

There were five changes that occurred in 2014 that everyone planning for retirement needs to know about.

The phrase "roll with the changes" may be 2014's retirement planning motto. While we could review political, economic and international, those affecting IRA planning have been especially interesting for retirees and the estate planning attorneys who advise them. Not surprisingly, Forbes has weighed in with an article chock full of advice titled “5 Biggest Retirement Planning Changes for 2015”.

A Change in Creditor Protection for Inherited IRAs. Overall, qualified retirement accounts, such as 401(k)s, pensions, and IRAs, have good creditor protections. However, in 2014 the Supreme Court cut back on some protection for IRAs. Typically, up to $1.25 million are protected from creditors if it’s in a Roth or Traditional IRA under federal bankruptcy laws. But the U.S. Supreme Court, in Clark v. Rameker, held that inherited IRAs are not “retirement funds.” So these don’t get creditor protections afforded under federal law. This might change how you want to bequest assets to your heirs. You should speak with a qualified estate planning attorney if you have questions.

Estate Planning for Houston Singles: What You Need to Know

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

“For those who are single, whether they’ve always been single or they find themselves single again, there are some unique [estate-planning] issues,” says Doug Rothermich, managing director, wealth-planning strategies at TIAA-CREF.

Married couples usually can see the benefit of having an estate plan, but single people mistakenly think estate planning does not apply to them.

Accordingly to a recent Wall Street Journal article titled “Estate-Planning Essentials for Single People,” single people face some unique estate planning issues. This is true whether they have always been single or now single again.

Ring In the New Year with a Roth IRA

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

Sharron Epperson, who is CNBC’s senior personal finance correspondent, stressed the importance of retirement planning in the coming year — with two products in particular.

Need a financial resolution for 2015? Save as much money as you can in a Roth IRA. One of the best things you can do to set yourself up for financial success in the future is to be strategic with your savings.

According to a recent article at gobankingrates.com, titled “CNBC’s Sharon Epperson on Why You Need a Roth IRA in 2015,” in the event of an emergency make sure you're able to withdraw your contributions at any time without incurring penalties or fees. This is also a terrific way to save for retirement, because you might be in a higher or lower tax bracket when you’re in your 60s. Who knows?

Store-Bought Gifts? Give Assets to Houston Families Instead

Published on: December 31, 2014 | By McCulloch & Miller, PLLC

Gifting can be an estate planning tool, for you can save on future estate taxes and have the pleasure of watching your dollars work for your children or grandchildren while you are still alive.

If you're tired of the standard store-bought items for gifts, you may consider a different spin on gifting. What about giving away some assets to your children or grandchildren?

In certain states, the estate exemption is just $1 million, not the $5 million (indexed for inflation) as at the federal level. CBS Boston's recent posting, titled “All About Gifting Assets,” warns that things can get complicated pretty fast and you should have a good estate planning attorney to help you.

Recent Survey Says 80% of Americans Failed Retirement Literacy Test

Published on: December 30, 2014 | By McCulloch & Miller, PLLC

“We’re not surprised by the fact that people don’t know a lot about retirement income planning,” says David Littell, program director at the American College. “I was surprised at how badly they did.”

Could you pass a retirement literacy test? Apparently, 80 percent of Americans surveyed did not.

These Americans were polled on 38 retirement literacy questions on basics like Social Security, life expectancy, IRAs, life insurance and investments, and the mechanics of bonds. Sadly, only 20 percent were given passing grades, the college said. This isn't the first survey to raise concerns about Americans’ retirement readiness. In an article titled “Americans fail in retirement literacy,“ The (Palm Springs, CA) Desert Sunnoted similar shortcomings in a 2011 report.

Who Gets Grandma’s Houston Keepsakes?

Published on: December 29, 2014 | By McCulloch & Miller, PLLC

There is no magic formula or solution available for transferring personal property because each family and their possessions are different. However, the Extension program "Who Get's Grandma's Yellow Pie Plate?" suggests there are some factors for every family to consider whether planning for the transfer an individual's own personal property or working together to plan the transfer of items belonging to a family member.

While an estate plan is critical in dealing with titled property, there are few individuals who take the time to plan ahead regarding the items in their household.

Longer Lifespan Can Affect One’s Inheritance

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

Adult children have historically expected to inherit from their parents while in their 40s or 50s, yet now many aren’t doing so until their 70s or even 80s, as their parents live into their 90s or beyond.

When should you expect to receive your inheritance?

According to the Social Security Administration, a 65-year-old man now has a life expectancy of 84, and a 65-year-old woman about 87. These increases in longevity have created changes in financial planning—like retirement calculations and long-term care insurance costs. However, as a Barron's article titled "When Longevity Upends Trusts" notes, these numbers are just beginning to affect trusts and estates.

Caregiving for Loved Ones, Without Family Feuds

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

Although nobody can be forced to participate as a caregiver, there are ways to approach the situation that are more likely to have a positive result.

Families encounter many issues when planning care for a loved one. A common issue is the unwillingness of siblings to “step up to the plate” and make a contribution to the caregiving tasks.

The (Carlisle, PA) Sentinel’s recent article, titled "Elder Care: Keeping family conflict to minimum," explains that even though no one can be forced to participate as a caregiver, there are some ways to approach the situation that may yield more positive results.