Houston Estate Planning and Elder Law Attorney Blog

The Many Methods Of Leaving An Inheritance in Texas

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

People who take good care of their children take good care of their money, and people who take good care of their money take good care of their children.

Money can bring about both the good and the bad, depending on how one uses it. So you can imagine how concerning it is for parents and grandparents to make the best decisions for their heirs regarding their inheritances. A recent Forbes article titled “What Can We Do With Money For Our Kids?” explores a few tools that may help.

As an alternative to gifting money outright to your children or grandchildren, the article explores Roth IRAs, 529 plans, annuitized gifts, and even UTMA/UGMA accounts. While there are many wealth transfer tools and methods, the key is asking yourself a few important questions upfront.

More Medicare Coverage For Mental Health Costs May Aid Houston Residents

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

“Hopefully, older adults who previously were unable to afford to see a therapist will now be more likely to do so,” said Andrea Callow, a policy lawyer with the Center for Medicare Advocacy.

Now that 2014 is officially here, it's time to start reviewing the Obamacare provisions that went into effect January 1. One change for elderly and Medicare beneficiaries that went into effect has been on the books since 2008 through the Medicare Improvements for Patients and Providers Act. Medicare will now cover costs for psychological care to the same degree as physical medical costs at the 80/20 Medicare/Beneficiary split.

The New York Times – The New Old Age Blog took note of this change in a recent article aptly titled “Medicare to Cover More Mental Health Costs.” It seems psychological issues are often the most directly felt difficulties in the life and wellbeing of elderly Medicare beneficiaries. With the new change, the long-held gap in coverage between the costs for physical medicine and psychological care has now been closed. Consequently, more elderly beneficiaries will be able to afford the care that is uniquely suited to their own needs and happiness.

New Year, New Estate Plan for Houston Residents

Published on: January 20, 2014 | By McCulloch & Miller, PLLC

Estate planning is a difficult topic to address because it requires you to think about a world without you in it. No one likes to reflect on their own demise, which is why many people simply put estate planning off for another day and only get around to it when the chips are down.

A new year means a new start — another "go" at those to-do lists. Will estate planning make the list this year? Estate planning is not always easy think about, but it is oh so necessary.

Understandably, musing over matters of your own disability and death are not at the top of anyone’s list of “fun things to do,” they are a matter of personal, adult responsibility. In addition, plans can get rather complex when it comes to complex lives, complex families, and complex assets. As with most complex but essential matters in life, it is best to start with the basics.

Inheritance Isn’t Always About The Cash

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

“Money can be divided pretty evenly, but the teacup that grandma always used? Maybe there’s only a $2 value associated with that teacup, but because of the sentimental value and the emotions around it, that causes the controversy.”

While it is easier to think about an inheritance as money or assets, don't forget the other valuables that get left behind. The gift of “family” itself in the form of history, stories, memories, and mementos are also part of your legacy — a part that your heirs may value more than the cash.

For support of this notion, consider the findings of a recent survey of baby boomers, as reported in a recent article of MarketWatch titled “Your heirs want this even more than your money.”

An IRA That Protects Heirs From Themselves

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

One big advantage of the trusteed IRAs: IRA owners can prevent their beneficiaries from spending down the accounts right away.

An IRA is a very powerful tool, if you use it right. Your IRA can essentially serve estate planning purposes beyond simple retirement funding in the form of a “trusteed IRA.”

A good place to start your education is a recent MarketWatch article titled “Trusteed IRAs Can Help Heirs Manage Inheritance.”

Beneficiary Designation Debacle

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

If your beneficiaries are out-of-date, when you die, your assets could go [to] the wrong people – a former spouse, for example – no matter what your will says.

Often, the biggest mistakes we can make when it comes to our estate planning are also some of the easiest to prevent. For example, the consequences of failing to update your beneficiary designations can be catastrophic, while the “fix” is as easy as a phone call or completing a paper (or online) form.

A recent Forbes article titled “The Big Estate-Planning Goof You May Be Making” puts the importance of proper beneficiary designations in perspective.

Four Business Succession Questions Houstonians Need to Ask

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

While your goal might be to attract the most qualified buyer that will pay the asking price and lead the company on a path of continued success, it is what you expect of your life post-sale that should constitute how you execute the deal.

Done right, a business succession or sale requires the ability to ask the right questions, let alone have the right answers. And there is no shortage of good questions to ask of yourself, your company, your family, and of course, the potential buyer.

Fortunately, a recent article in The Business Journals titled “Key questions to ask when planning to sell your business” will give you a head start on the questions, but you must supply the answers.

Estate Planning For Your E-mail Account

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

What would happen to your e-mail accounts if you suddenly died?

Are familiar with the notion of a digital estate? What happens to your online bank accounts, emails, social media and your entire digital presence on the web when you pass away?

Imagine a world without you in which your heirs cannot access your digital assets. They cannot access your e-mails, either practically or legally, to get to important legal or financial information, whether about bank accounts or friends. Sadly, that is the reality in most scenarios today.

529 Colleges Savings Plan – “Super-Fund” It!

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

You can stuff a lot of money into a 529 college savings plan now and then do the same thing at the beginning of 2014 – a strategy that advisers say they are seeing many wealthy clients adopt this year.

Funding a 529 College Savings Plan before year-end is a great gifting strategy your college-bound grandkids. They will surely appreciate your gesture! And if you wanted to take that gift one step further, did you know you can actually super-fund it?

As though just funding a 529 were not good enough, Reuters provided the skinny on super-funding recently in an article titled “Should you super-fund your 529 college savings plan?”

Money Talks With Your Parents

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

Aging parents need to establish a plan and communicate it with their adult kids — and adult kids need to ask their parents about their finances.

In our own lives, our parents start and run the money conversations from that first allowance to gearing up for those college loans and beyond. Later in life, the roles are reversed and our elderly parents might need a money conversation about their own future and well-being. Unfortunately, to make that conversation happen, it may be up to the adult children to take the lead.

Yes, it is truly a role reversal and often an important one. How do you start “the talk” and get it right?