Houston Estate Planning and Elder Law Attorney Blog

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.”

From the Birds and Bees to the “Aging Talk” with Houston Adult Kids

Published on: April 17, 2014 | By McCulloch & Miller, PLLC

“This time it’s not about the beginning of life or how babies are made. It’s about the end of life — yours — and the many issues and decisions that will confront you and your children.”

Back when the kids were kids, it seemed like the “birds and the bees” talk was tricky. However, according to a recent article in The Washington Post, the “aging talk” is far more difficult to grasp. Why is that?

Be sure to read (and share) this article titled “Having ‘the other talk’ with your kids — not storks, but aging.”

No Need For Your Life Insurance? Donate It To A Houston Charity!

Published on: April 16, 2014 | By McCulloch & Miller, PLLC

There are several ways to donate a life insurance policy to charity, according to the Planned Giving Design Center, Monroe, NC.

There are many advantages to life insurance as it can be a cushion against high-cost issues or a source of much-needed cash flow for your family. However, you might end up not needing it all. If this is the case, what do you do with the policy?

The good news is that you can kill two birds with one stone. Have you thought about donating your life insurance to a worthy cause?

The Family Limited Partnership: Your Key To Control In Houston

Published on: April 15, 2014 | By McCulloch & Miller, PLLC

FLPs offer multi-layered benefits by providing senior family members with several advantages—all without ceding control of the assets to junior family members.

Estate Planning is often a game of give and take. So what if you want to give away your assets, but not just yet?

As is so often the case, where there’s a need there’s a tool. A particularly powerful tool in this case is the Family Limited Partnership (FLP). An FLP can do double duty as a tool for asset protection as well as for estate planning.

Proper Planning For Alzheimer’s Patients in Houston

Published on: April 14, 2014 | By McCulloch & Miller, PLLC

Alzheimer’s patients live for years with diminished mental skills, which makes it crucial that they make decisions early on about how their care should proceed.

Planning for one’s estate and for one’s late-in-life plans requires more than a bit of wherewithal. This is not only an empirical fact but also a legal one. Because Alzheimer’s and dementia affect the mind means certain legal choices, whether regarding healthcare or disposition of property to one’s heirs, simply have to be down and in writing well before they are questionable.

It’s a complex problem. Fortunately, there are some important tools to keep in mind early and get a plan in place. Some of the basics were helpfully pointed out in a LifeHealthPro article last month titled “4 things to know about Alzheimer’s and estate planning.”

Deciphering The Technical Language Of Trusts

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

NING, Ding, Grat. Ilit, Crat, Crut, Qtip.

So what are these oddly named trusts and what do people who need them need to know?

Ever been to a place where you don't understand the language? Learning a new language is no easy task. At least when it comes to French or Italian (or Hindu, Swahili or Balinese, if you happen to be that well-travelled) most us of who can’t speak a lick can get through with pointing and smiling. However, when it comes to technical languages there is a different type of difficulty.