Houston Estate Planning and Elder Law Attorney Blog

Philanthropy Lesson: Check Your Houston-Area Charities

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

Want to better understand the mistakes charities make, so you can do a better job in your own philanthropic endeavors?

With the yearly end-of-year run on charitable giving now behind us for 2013, and year-end stresses subsiding, this might be a good time to consider how to approach your philanthropy to do the most good.

Sometimes knowing what not to do is more instructive than a positive lesson. This is true in all of life’s lessons, big and small (think sticking your tongue on a frozen flagpole). When it comes to charitable giving, a recent article in Barron’s chronicles how well-intentioned charity often fails in its follow-through. The article, titled “Philanthropic Fiascos,” provides a few major real-life examples of incredible generosity squandered, including the failure of positive change in Haiti despite an incredible international outpouring of charitable funds.

Selling Your Houston Business – Employee Stock Option Plan

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

For business owners that have also established their business as a corporation (not an option for partnerships), an Employee Stock Ownership Plan (or ESOP) may provide a better retirement option.

How you go about selling your business is completely up to you. And for most, that moment is bittersweet. Bitter because you may say goodbye to the business forever. Or bitter because you may sell yourself as an “employee” to the company you no longer own for those last years leading up to retirement. So where's the sweet part?

Alternatively, an ESOP may be an interesting option to consider to sweeten up that bittersweet decision. Curious? Take a look at a recent article in Forbes titled “How ESOPs Let Employees Take Stock In Your Retirement.”

Medicare Denied? Appeal Your Houston Application.

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

If a beneficiary disagrees with a decision, there are reconsideration and appeals procedures within the Medicare program.

Medicare approvals can be tough at times, and some may find their claims come up with the big "D" – denial. So what happens when Medicare denies a beneficiary’s claim for care?

While it is not always smooth sailing, it is important to know that you are not without recourse. You can appeal Medicare decisions to refuse coverage for needed care, and sometimes you simply must.

The Roth IRA Is “Mr. Popularity” in Houston and Beyond

Published on: January 27, 2014 | By McCulloch & Miller, PLLC

Conversions from regular IRAs to Roth retirement accounts increased more than nine times in 2010, rising to $64.8 billion from $6.8 billion in 2009, according to data released [January 3rd] by the Internal Revenue Service.

As reported in Bloomberg on the day of an IRS announcement, conversions from traditional to Roth IRAs increased by nine times in 2010. That was the first year of new laws surrounding the tool, pulling in over 10% of all millionaires with it. Indeed, this rise in popularity means a Roth IRA is food for thought.

For a bit of the history behind the IRS data, have a look at the original Bloomberg article titled “Tax Break for IRA Conversion Lured 10% of Millionaires.” Roth IRAs are just another IRA in that it is an account earmarked for a retirement account. Interestingly, Roth IRAs work backwards by taxing at the time of deposit rather than at the time of withdrawal. That timing is the crucial difference.

Houston Residents: Time for A Check-Up For Your Trust

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

… Make sure that you understand what is in your trust. Other issues, particularly those related to tax issues, will require consulting with an estate planning professional.

Do you have a trust? Trusts are powerful estate planning tools, those of which should be properly established and properly maintained. When it comes to revocable trusts, also known as “living” trusts, ElderLawAnswers offers a convenient and instructive checklist of the things to watch and the things that can go wrong in an article titled “9 (Potential) Problems with Your Trust.”

These nine (potential) problems reside in these questions:

The Law Blurs The Lines Between Life And Death for Houston Families

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

"It seems like there seems to continue to be confusion about what it means to die using neurologic criteria," said Cynda Hylton Rushton, professor of clinical ethics at Johns Hopkins University.

Two recent medical cases are making headlines over the often blurry lines between life, death, medical ethics and the law. When confronting issues like brain death and life support, what is the "right" decision for the patient?

CNN recently considered these two cases in the headlines and the surrounding issues in an article titled “When 'life support' is really 'death support'.”

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.”