Houston Estate Planning and Elder Law Attorney Blog

Estate Planning No-No’s for Houston Families

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

If you wish to ensure that your estate does not fall prey to predators, creditors or taxes, keep reading to be sure you're not committing the five cardinal sins of estate planning.

Just as it's important to know what to do, it's vital to know what NOT to do. Take estate planning for example. It takes a great deal of training to know what to do to best plan and structure an estate plan. That’s why you consult competent and experienced legal counsel. And knowing what NOT to do is part of that planning.

Maybe you’ve yet to start and maybe you’ve been working with an estate planning attorney for some time and piecing together some foolhardy designs. Either way there are some basic types of blunders that can befall anyone not wary enough to look for them.

The Houston Family Home Hand-Off

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

What follows are issues to consider, and, in those rare cases where a transfer can make sense, how to do it the right way.

Are you thinking about handing over the family home to your loved ones early? Proceed with caution. Although the hand-off can be a blessing to some, there are consequences you should consider before passing on the house keys.

This challenge was the subject of recent article in The Wall Street Journal titled the “Dangers of Giving Your Home to Your Children.”

There’s Nothing Easy about Easement Valuations in Houston

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

Generally the best way to value things is by looking at what similar things sell for. There is not a lot of buying and selling of facade easements. So what you do is value the property as it is and then value it as encumbered by the easement. If you can’t find sales of similar properties both with and without the easement, it all becomes rather hypothetical.

Proving the value of something is not easy. It's hard enough when you are trying to value tangible items, but what about those intangibles? A particular intangible, non-market benefit of great importance has become all the harder to prove: the easement valuation.

The developing trend against easement valuations was pointed out in a recent Forbes article titled “Easement Valuations Not So Easy Anymore.” If you have any possible interest in leaving an easement then it’s a problem well worth your planning attention.

Downsides of Reverse Mortgages for Houston Families

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

Reverse mortgages, which allow homeowners 62 and older to borrow money against the value of their homes that need not be paid back until they move out or die, have long posed pitfalls for older borrowers.

Although a reverse mortgage has some advantages, such as offering a means of cash to make ends meet, the financial community has been quick to point out that there are also some serious pitfalls to these mortgages.

The biggest drawback to bear in mind is that your heirs and loved ones may bear the brunt of the burden when it comes to those drawbacks. It is important to know how reverse mortgages work before you sign up for them. While you are at it, make you’re your heirs and other inheritors know what to expect.

Adult Day Cares Reduce the Care Giving Burden for Houston Families

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

Adult day care centers provide care and companionship in a group setting to seniors who need supervision during the day, allowing their caregivers to go to work or take a much-needed break.

The balancing act of caring for an elderly loved one can be difficult, expensive and exhausting. You want to ensure they receive the care they need, yet at times you may feel overwhelmed.

Elder care options are often appreciated and one intermediary option was recently covered in an ElderLawAnswers post titled “Adult Day Care: Providing a Break for Caregivers.”

Houstonians May Note Increase in Charity Spend-Downs

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

About 50 years ago, only 5% of the total assets of America's largest 50 foundations were held by spend-downs. In 2010, that number had risen to 24%, according to Bridgespan Group in Boston.

Today's charitable foundations seem to be shifting from maintenance for longevity to spending down and winding up.

This trend was identified in a recent article in The Wall Street Journal titled “The Rise of Spend-Down Philanthropy.” The hard numbers in the article come from an analysis by the Bridgespan Group which found a marked jump in spend-downs. As reported there, “About 50 years ago, only 5% of the total assets of America's largest 50 foundations were held by spend-downs. In 2010, that number had risen to 24%, according to Bridgespan Group in Boston.”

Getting the Biggest Bang in Houston for Your Inherited Property Buck

Published on: April 23, 2014 | By McCulloch & Miller, PLLC

Perhaps the more important detail of this story is that the home was sold in an estate sale by heirs who appear to have let the property go for considerably less than market value.

Inherited property brings with it certain important responsibilities, and that goes double and triple for executors or trustees. The gifted property can be an immense gift and boon to your future. Even if it’s not going to be a home to live in and is just an asset to sell, what a windfall it can be!

There are all sorts of liabilities, insurances, and special transactions that might become important when a piece of real property is at stake. However, foremost at issue for heirs is selling it at the right value. Indeed, responsibility for understanding the real estate market or knowing whom to trust when selling real estate is something an heir takes on.

Heirlooms Encompass Memories for Houston Families

Published on: April 22, 2014 | By McCulloch & Miller, PLLC

Time, it seems, has healed past wounds enough to leave us remembering Grandpa Oscar with a smile. Very belatedly the violin has served its purpose. We can hold on to the memories and let go of the object.

Family heirlooms seem to have special powers over the family. Memories and story-telling often result in the discussions of an inherited object. As one sitting down to put your intentions to paper, or even as the inheritor, it is a power worth pondering.

There are always the goals and intentions of the planning parent, of course. Nevertheless, more often than not, it is the family that sees the peculiar power of an heirloom. Maybe it is something well-loved and fought over, or the heirloom may simply provide the tinder to which a disgruntled heir may choose to set match and light a fire.

Wealth Transfer Goal: Keeping the Houston Family Together

Published on: April 21, 2014 | By McCulloch & Miller, PLLC

“I had this fear that wealth could dissolve the family and the business would disintegrate,” Mr. Wiener, 68, said. So he hired coaches and consultants, had family meetings and set up a family foundation — all with the goal of keeping his family together after he died. “It’s not perfect; it’s an evolving process.”

Whether rich or poor, homey or worldly, it’s about keeping the loved ones together and passing on the family wealth most efficiently.

Whatever your station, you might learn a thing or two from the problems faced and solved by others. As the New York Times notes in a recent article titled “Looking for Ways to Keep Money From Dividing a Family,” you can especially learn from those who happen to be part of an exclusive club like Tiger 21.

Stepping Up with Portability in Estate Planning for Houston Couples

Published on: April 18, 2014 | By McCulloch & Miller, PLLC

One of the key advantages of a portability-based estate plan over a credit shelter trust-based estate plan is that portability allows the married couple to obtain a second step up in basis upon the death of the second spouse.

With the new ability to minimize estate taxation, known as “portability,” there is now a choice between the automatic portability plan and the old standby of the trust-based plan, notably the credit shelter trust plan.

One important detail driving the choice is the “step up in basis,” as pointed out in a recent Forbes article titled “Portability Plans Vs Credit Shelter Plans Round 1: Step Up in Basis.”