Houston Estate Planning and Elder Law Attorney Blog

Houston Boomers – Beware of These Estate Planning Blunders

Published on: September 12, 2014 | By McCulloch & Miller, PLLC

David Cutner, partner at Lamson & Cutner, attorneys for the elderly and disabled offered the following tips for both estate planning and long-term care for boomers.

A recent Fox Business article reported that the majority of seniors are completely in the dark on one of the biggest financial risks they are facing. The article, titled "Estate Planning Mistakes Every Boomer Should Avoid," sheds some light on the catastrophic costs of long-term care.

According to the U.S. Department of Health, 70% of the U.S. population over age 65 will require long-term care, and over 40% will need nursing home care for some period of time. Most people do not have insurance coverage for this risk and believe inaccurately that Medicare covers their long-term care. That is just not the case, and without planning, if care is needed, life savings are quickly wiped out. Fortunately, there are solutions that will protect an individual's assets and income, and at the same allow access to Medicaid benefits. An experienced elder law attorney will have the knowledge and background to provide you with needed advice and the skills to design a strategy that will achieve your goals. A well-drafted estate plan is a wise investment to ensure that your assets are passed to your beneficiaries efficiently—in a manner that avoids conflicts among your heirs and that minimizes costs.

Houston Scam Alert! Don’t Fall Victim to Estate Planning Cons

Published on: September 11, 2014 | By McCulloch & Miller, PLLC

Constantly in the news, it seems like there is a new scam making headlines. One surprising area in which scams are becoming more common is estate planning. Each year, more people fall victim to unscrupulous and unqualified sellers of ineffective estate planning documents. Often, these scammers are door-to-door salesmen or telemarketers.

Estate planning is a very personal and essential process to protect your loved ones and your assets. And all it takes is a scammer to mess that all up. A recent Webwire article, titled "How to Avoid an Estate Planning Scam," points out things to keep in mind when considering your estate planning options.

Employ a qualified estate planning attorney. Do-It-Yourself is very popular these days, from home improvement to filing income taxes. There are many websites that offer DIY wills. Beware! Estate planning is not a point-and-click or fill-in-the-blank proposition: it is a complex area of law with different rules depending on where you reside. Use a licensed, experienced estate planning attorney to prepare your estate plan. Check with the state bar and make sure he or she is licensed to practice law in your state.

Yes, Houston. You Really Do Need a Will

Published on: September 10, 2014 | By McCulloch & Miller, PLLC

If for no other reason, you need a will to name an executor (or executrix).

So, do you really need a will? Yes. Really.

A recent Forbes article titled "Do I Really Need a Will?" recommends that you should have a will to at least designate an executor or executrix to administer your estate. This individual will be responsible for taking care of your affairs after you pass away. Without a will, the probate court will appoint an administrator—this could end up being almost anyone. Anyone with a decent reason has the ability to petition the court to be appointed—like your cousin Reggie (who you last saw at your fourth birthday party) or your Uncle Ted (who is always dressed like it is 40 below, even in July).

Fundamental To-Do’s For Houston Families When Loved Ones Pass Away

Published on: September 9, 2014 | By McCulloch & Miller, PLLC

Losing a loved one is a difficult experience. Yet, during this time, you must complete a variety of tasks and make important financial decisions. The following checklist may help guide you through the matters that must be attended to.

If you have lost someone you love, it's difficult to know what to do next. In addition to the emotional stress of losing someone close to you, you may also be dealing with financial issues you weren't prepared for. Take some advice from a recent article in the Des Moines Register titled "Important financial steps to take following a death." The article contains a helpful checklist to help guide you through the matters that will need attention.

Here are some of the initial tasks:

Partial Roth IRA Conversions May Reduce Tax Impact for Houston Investors

Published on: September 8, 2014 | By McCulloch & Miller, PLLC

Today, ordinary income plus various other taxes could boost the effective tax rate on those second-level RMDs well over 40%. Who knows what tax rates might be in effect when current clients eventually pass their IRAs to future generations?

Some individuals choose to have partial Roth IRA conversions so they remain in their current income tax bracket and decrease other taxes and charges, according to a recent article in Financial Planning titled "Estate Planning: Smart Roth Conversion Trick." Along with a Medicare surtax and deduction phase-outs, Medicare Part B premiums are also part of the mix.

Medicare enrollees typically pay about $105 monthly for Medicare Part B. This covers doctor bills and some other medical expenses. However, seniors who have a modified adjusted gross income (MAGI) above $85,000 (or $170,000 on joint returns) will pay anywhere from roughly $145 to $335 a month for that same coverage. This is because Roth IRA conversions increase an individual's MAGI. The original article advises those in this situation to take an annual series of partial conversions now to thereby limit future taxes, as well as “stealth” taxes like extra Part B premiums.

The Elder Justice Roadmap Initiative May Help Houston Elders

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

Given the widespread health, legal, social and economic implications of elder abuse, the Elder Justice Roadmap Project sought the input of experts and stakeholders from across the country in order to develop a strategic resource — by the field and for the field — to combat elder abuse, neglect and financial exploitation.

Impacting about five million Americans each year, elder abuse is a crime that can include physical, sexual, and psychological abuse, neglect, abandonment, and financial exploitation. This abuse results in thousands of cases of illness, injury and suffering for elderly victims, their loved ones and their caregivers. It is tragic that so few cases are reported to the authorities. According to some statistics, only about one in 24 is reported. With Baby Boomers retiring and this widespread impact of elder abuse, the Elder Justice Roadmap Project was initiated to collect the thoughts of experts and stakeholders from across the nation. Their aim was to develop a strategic resource to fight elder abuse, neglect and financial exploitation. The project's report identifies and prioritizes actions that direct service providers, educators, and researchers can take to benefit older adults in this situation. And as its name implies, it provides a roadmap for strategic investment and engagement by policymakers in both the public and private sectors to advance these efforts to prevent and combat elder abuse.

The Elder Justice Roadmap Project’s publication came about after President Obama pledged to eliminate the victimization of older Americans. On June 11, he proclaimed World Elder Abuse Awareness Day and declared that the government must improve the criminal justice response and work harder to ensure all Americans have the “right to enjoy their retirement years with a basic sense of security.”

Long-Term Care Planning for Houston Boomers: Medicare vs. Medicaid

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

Although their names are confusingly alike, Medicaid and Medicare are quite different programs.

What is the difference between Medicare and Medicaid? There are strict income and asset guidelines that must be satisfied to be eligible for Medicaid coverage. While Medicare is solely a federal program, Medicaid is a joint state-federal program. Each state operates its own Medicaid system, but it must adhere to federal guidelines to receive federal funds. Federal money pays for half the state’s Medicaid costs, and the state pays the rest.

Long-Term Care Planning

Hey, Johnny Football … Protect Your Money From Getting Sacked!

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

Manziel is living in the moment and enjoying himself, which is something that Namath did throughout his career, continued Mr. Beatrice. We see a potential problem, however, with his outgoing and festive behavior, and it is not directly related to his abilities on the field. Let's talk about the possibility of Manziel going broke sometime after the year 2020; better yet, let's talk about how he can prevent a financial disaster.

All-star quarterback Jonathan Paul Manziel, or "Johnny Football," has been showing up a lot in news headlines lately … and not always for his passing skills.

Take his recent involvement in a federal lawsuit. The case was filed by a federal inmate known to file baseless civil actions using the names of people in the news and entertainment industries. Here he used the name of a CNN reporter. The claim said that Manziel had sexually harassed the plaintiff by posting inappropriate pictures on Instagram.

Estate Planning Must-Dos For Houston College Students

Published on: September 2, 2014 | By McCulloch & Miller, PLLC

After traveling to Mexico for spring break, Alex developed a severe intestinal bug that landed him in the college infirmary. Franc rushed to visit him there, only to find that doctors refused to discuss his son’s condition, citing privacy concerns.

If you have a college-aged child, you may need to get their estate planning started sooner than you think.

Consider these two fundamental estate planning documents – the durable power of attorney and the health care proxy. Even though they are usually thought of as only for older adults and seniors, younger people need them just as much. If a young adult does not have these, typically parents will not have the authority to make health care decisions or manage money for their kids after they are 18. It does not matter if they pay their college tuition, include them on their health insurance, and claim them as dependents on their taxes. In fact, without these fundamental documents, parents might need to seek court approval to act on behalf of their young adult children in the event the children are in an accident and become disabled.

Houstonians Can Back Up Life With An Estate Plan

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

…As with hard drives, our limited shelf life requires that we make the most of each day while also planning for a peaceful transition. Having loved ones struggle with managing unorganized financial affairs with no assistance only prolongs grief and blemishes fond memories.

Why do most of us give more attention to backing up our PCs than we do to our estate plans? This question was explored in a recent Time article, titled "How Writing a Will Is Like Backing Up Your Hard Drive." To make sure our computers work effectively, we conduct updates, check for viruses, and clean up unwanted material. Being unorganized only leads to trouble and added expense. Making our loved ones deal with unorganized financial affairs and estates only creates more stress and adds to the grief.

In one way, if you do not back up your PC's hard drive or do not have an estate plan, you are not alone. However, that really is not good news. Just because a lot of people flunk the final exam does not make the conversation with your parents any easier. So too, in estate planning—being unorganized only makes more work for your family and your estate planning attorney. On top of that there will be more expenses involved.