Houston Estate Planning and Elder Law Attorney Blog

End-Of-Life Planning – Four Must-Have Documents for Houston Residents

Published on: February 19, 2014 | By McCulloch & Miller, PLLC

To avoid a crisis in your family, be sure your parent has the following documents.

Some of the most important end-of-life planning should include making sure your loved ones have the legal right to take care of you later in life. Accordingly, there are some essential legal documents you really must have in place to make this happen.

End-of-life planning has much to do with medical planning. Doctors can only do what you ask of them. But what if you cannot communicate your own wishes to them? What then?

Medicaid’s Give And Take

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

The fear that the government could one day seize their homes is deterring some people from signing up for Medicaid.

Medicaid comes with a lot of give and take. It is a safety net for those who need it, but it does come with its drawbacks. One drawback many are now discovering is “Medicaid Asset Recovery.”

So, what is “Medicaid Asset Recovery”? In layman’s terms: after you pass away the government can recoup the benefits you received from Medicaid by taking from your remaining assets, which usually means your house.

Preparing A Will: What, Where And Why for Houston Residents

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

You should prepare a will so your heirs will be taken care of in an organized, legal and efficient manner, according to your wishes.

Preparing your will is not exactly a "fun" thing to do, as most people don't want to think about the end of their own lives. Even Baby Boomers that are reaching that stage of life procrastinate on this arduous task.

Whether you tell yourself there is still time or “I do not have enough assets to have an estate worthy of planning,” the excuses likely run much deeper. Perhaps you are intimidated by the process, by the concept of facing mortality, or the fact that you really need to involve (and pay) an attorney to help you.

Should Houstonians Downsize In Retirement?

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

Emotionally, it's hard to let go of a home filled with memories. Moving is a hassle, and downsizing to a smaller home isn't always the cash bonanza some might expect.

When entering your golden years of retirement, what is the ideal living arrangement for your new stage of life? Do you stay in your home where you've made life-long memories? Or do you downsize to something else in hopes of saving on expenses and maintenance?

Even if you have yet to confront these fundamental retirement questions, you ought to consult a recent article in The Wall Street Journal titled “When Should Retirees Downsize Homes?” The Journal asks, “when” not “if,” but that does not mean there is not another side of the story. Enter the DailyFinance with an article providing yet additional reasons to stay put. In fact, that article is aptly titled “7 Reasons Not to Move in Retirement.”

Lifetime Gift Exclusion And Recent Surge In Gifting In Houston

Published on: February 13, 2014 | By McCulloch & Miller, PLLC

The law created a chance for wealthy families to move assets out of their estates and let their heirs benefit from any appreciation in value, said Lisa Featherngill, a managing director at Abbot Downing, a wealth-management unit of Wells Fargo & Co.

According to official numbers recently released by the IRS, U.S. taxpayers transferred $122 billion in non-taxable gifts in 2012. To put that number in perspective, it is quadruple the tax-free gift giving of 2011 and 2012 combined.

This wealth transfer tsunami was the subject of a recent Bloomberg article titled “Tax-Free Gifts Quadrupled in U.S. After IRS Limit Lifted.”

Admitted Vs. Observation: Awareness Of Medicare’s Coverage in Houston

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

If you or a family member land in the hospital as an observation patient and think you should be admitted, it’s better to act sooner than later.

When it comes to whether or not care is covered by Medicare, the distinction between being "admitted" or just "under observation" is critical. This is especially important when it comes to whether your elderly loved one will have nursing home coverage after discharge from the hospital.

Understanding the meaning of observation status is essential. Once you do, then you will need to learn all the administrative tricks, twists and turns – and, yes, even to know how to fight it.

Are You Making Plans For Your Digital Estate, Houston?

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

Without a plan in place, you risk burying your family in red tape as they try to get access to and deal with your online accounts that may have sentimental, practical or monetary value.

Just when you think you've covered all your bases when planning for your estate, the issue of your digital accounts comes up. Yes, all of your online accounts need to be considered too. Have you made proper arrangements for them?

The problem of the digital estate is an entirely 21^st century problem. Thankfully, more information is coming to light about the consequences of failing to make plans for digital assets. If this is a new subject matter for you, then you will want to read a recent MarketWatch article titled “Who gets your digital fortune when you die?”

Protect Your Beloved Pet With A “Pet Trust” in Houston

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

"Pet trusts aren't just for the wealthy," says Frances Carlisle, a trust and estates attorney in New York. For most pet owners, she adds, the goal "is to make sure a plan exists for the care of the animal."

Do you own a pet? It seems as though more and more people are taking in pets these days. In fact, from 2010 to 2012, the number of pet-owning households increased from 62% to 68%. Consequently, more pet owners are taking their beloved pets into consideration when it comes to their estate plans.

Maybe you have heard the term “pet trust” before. Even if you have, The Wall Street Journal has provided the latest information on planning for your pet and some noteworthy statistics in a recent article titled “More Americans Are Writing Their Pets Into Their Wills.”

When Can Houstonians Use An Estate Tax “Portability” Exemption?

Published on: February 7, 2014 | By McCulloch & Miller, PLLC

Just when is the DSUE [Deceased Spouse Unused Exemption] available to a surviving spouse or the estate of a surviving spouse for use in determining the surviving spouse’s applicable exclusion amount?

It can be very challenging to stay on top of federal estate tax law changes. For instance, experts and taxpayers alike are grappling with the ins and outs of “portability.” How and when can it be used?

The temporary regulations governing portability are now on the books. While there is some guidance regarding how a “Deceased Spouse Unused Exemption” (DSUE) actually works, a recent Forbes article, titled “Estate Tax Portability – Date DSUE Amount May Be Taken Into Account,” provides some practical advice.

No Beneficiary Designation? An IRA “Uh-Oh” for Houston Families

Published on: February 6, 2014 | By McCulloch & Miller, PLLC

We say it over and over again. Check your beneficiary forms! Don't let your retirement funds go down the drain.

Anything involving the court system is rarely quick and painless (probate anyone?). Fortunately, IRAs can easily be transferred to your loved ones outside of probate simply by completing a beneficiary designation form. But what if there was no beneficiary designation form completed? Uh-oh, what now?

The slightly messy situation of an IRA left without a beneficiary was tackled recently by Ed Slott’s blog, The Slott Report. The article, titled “There is No Beneficiary on the Retirement Account: Now What?,” is the perfect encouragement to ensure that every beneficiary form is filled out and up to date.