Houston Estate Planning and Elder Law Attorney Blog

Why It’s Important to Learn About Probate Before Filing

Published on: August 8, 2024 | By Thomas W. McCulloch

The reality is that no one wants to find themselves in probate court. Probate courts evaluate a decedent’s will and decides whether the will is valid before approving the distribution of the decedent’s assets. If you are planning on filing in probate court, it is wise to take some time to first understand how the court works and what you need to do. By learning about probate court before filing, you can save yourself a major headache down the road.

Reason 1: There Are Several Texas Probate Courts

The first reason to learn about probate before filing is that there is more than one probate court. If you file in the incorrect court, the court could determine it does not have authority to hear your claim. You will then have to re-file in another court. To save time and money, figure out ahead of time which of the four Texas probate courts you should use. In general, if the decedent was a Texas resident, the county where he or she died will be the county where you should file for probate.

Reason 2: Probate Costs Money and Time

It can be costly to go through probate. Filing fees and attorney’s fees can take a toll on a family, and it is important to look into these fees ahead of time so that you can plan accordingly. Probate attorneys are required in most probate cases in Texas, and finding the right attorney can be a process. You should always make sure your chosen attorney is upfront about their fees before you decide to retain them.
The time that probate takes can also be frustrating for beneficiaries that are anxious to receive the assets a decedent left behind. Probate can take anywhere from a few months to over a year. By going into probate equipped with this knowledge, you can plan your finances accordingly.

Understanding Medicare v. Medicaid in Texas

Published on: August 8, 2024 | By David W. Miller

Medicare and Medicaid are two government benefits with very different purposes and very similar names. Because clients often come to us feeling understandably confused between the two, today’s blog post will cover the fundamental differences. This blog can serve as a touchpoint for the future when you want to apply for either benefit.

What is Medicare?

Medicare is health insurance from the federal government. The government provides Medicare for anyone 65 or older, as well as some people under the age of 65 who have certain qualifying disabilities. When you reach the age of 65, though, regardless of your health, you automatically qualify for Medicare.

To receive Medicare under the “qualifying disabilities” standard, individuals must have received Social Security Disability benefits for 24 months. As an alternative, individuals could have one of two conditions: (1) End Stage Renal Disease (ESRD) or (2) Amyotropic Lateral Sclerosis (ALS). Frustratingly, individuals with one of these diseases can only receive Medicare five months after their diagnosis. In general, it can take a long time for the government to process Medicare paperwork, so we recommend applying as soon as you know that you might qualify under one of these conditions.

What is Medicaid Crisis Planning?

Published on: July 30, 2024 | By David W. Miller

As we age, we need more health services to maintain our quality of life. Unfortunately, in this day and age, necessary services can cost a fortune. At McCulloch & Miller, one of our specialties is Medicaid crisis planning, which helps clients prepare for possible health needs in the future. If you have not yet begun your Medicaid crisis planning process, contact a Houston elder law attorney that can help you get started.

What Services Might I Need?

Government estimates indicate that up to 70 percent of older individuals require long-term care at some point. As you age, you might need to move into a facility such as a nursing home or residential center. If you decide to stay in your home, you might need a fulltime or parttime nurse to come check on you or to offer more substantive care. You might also opt for home therapy, wound care, fall prevention services, or other specialized services.

What Does Medicaid Crisis Planning Achieve?

Medicaid crisis planning helps you predict whether might qualify for Medicaid, which covers significant amounts of long-term care. To qualify, you must be characterized as “low income” or “very low income.” Of note, the government looks not only at applicants’ current financial status but also at their previous five years, so if you have only recently qualified as “low income,” you still might not qualify under the rules. To learn more about specific qualifications, click here for a chart of Texas Medicaid Facts for 2024.

How to Ensure Your Wishes Are Honored After Your Death

Published on: July 30, 2024 | By Thomas W. McCulloch

It can be scary to think that after you are gone, you have no control over how your assets are distributed. When you spend your life working hard to provide for yourself and your loved ones, you want to make sure that legacy continues after you die. There are some fundamental ways you can make sure your wishes are honored after your death; today, our blog reviews a few of these methods. This is not an exhaustive list, but instead a guide for what steps you should be taking as you start to think through your estate plan.

Write a Detailed, Thorough Estate Plan

Your estate plan should leave nothing to chance. It should include an exhaustive list of your assets, and it should be as specific as possible. The estate plan should not only provide instructions for your money; it should tell loved ones how you want them to handle your valuable or sentimental items, physical property, and even your digital footprint. By working hard to ensure this list covers all of your property and assets, you can make sure your loved ones know exactly how you want to handle all parts of your estate when the time comes.

Hire a Trusted Estate Planning Attorney

It can be tempting to use “DIY will” tools online or create estate plans without the help of an attorney. Ultimately, though, if you want to make sure your wishes are honored after you are gone, you should speak with an experienced Houston estate planning attorney that can help you create an individualized plan that takes your priorities into account. Estate planning attorneys will have insider knowledge about probate court, the validity of different estate planning tools, and basic procedural requirements for your documents. Hiring the right attorney could end up making a huge difference for how your estate plan plays out when you die.

Preparing for a Consultation with a Houston Estate Planning Attorney

Published on: July 23, 2024 | By McCulloch & Miller, PLLC

If you have decided to take the first step and meet with a Houston estate planning attorney, congratulations; you’ve made a great decision that will positively affect your and your families’ long-term futures. Estate planning consultations can be helpful for individuals looking to draft an estate plan, modify an estate plan, or just ask questions about whether they need an estate plan at all. Today, we cover some basics that can help you feel prepared for a consultation with your Houston estate planning attorney. Taking these steps can ensure that your meeting is as efficient and beneficial as possible.

Step 1: Gather Your Documents

Before you attend your consultation, start to gather documents that you might need on your estate planning journey. These could include tax returns, bank account statements, property deeds, divorce decrees or child support orders, and any anything else that speaks to your financial state. It is wise to go ahead and bring these documents to your initial consultation in case your attorney has questions about how and where you keep your assets.

Step 2: Talk to Your Loved Ones

Your estate plan should ideally not be a surprise to your closest family members. If you plan to involve others in the execution of your state plan, as an estate executor or trustee, perhaps, it is better to ask these individuals on the front end if they are willing to serve in this capacity. Communicating early and often about your estate plan is always a good idea.

When a Will May Not Be Enough for Your Estate Plan

Published on: July 17, 2024 | By Thomas W. McCulloch

Many times, prospective clients come to us for an initial consultation asking for help writing a will. While the will can be a valuable tool in estate planning, there are times when writing a will may not be enough. Today, we cover some reasons that your estate plan might need more than a will. As always, to talk more about the specifics of your estate and the planning process ahead, contacted a trusted Houston estate planning attorney that can walk you through your next steps.

Reason 1: Avoiding Probate

The first and most obvious reason to explore an estate planning tool outside of the will is that you want your loved ones to avoid probate after you are gone. A will is generally subject to probate, meaning a probate court reviews the will and decides if it is valid. Only after deciding the will is valid does the court approve the will so that beneficiaries can receive their assets. Probate takes time and resources that many people don’t have or don’t want to expend.

By using a trust instead of a will, you can oftentimes avoid probate altogether. The trust allows property and assets to go straight to beneficiaries instead of through the intermediary of the probate court. This allows for more efficiency, both in terms of cost and time.

Business Owner Estate Planning Strategies in Texas

Published on: July 13, 2024 | By David W. Miller

woman retirement risks and estate planning

When it comes to estate planning, business owners have a special set of needs to consider. Today, we cover some factors you might need to think through if you are a business owner drafting your estate plan. Of course, the specifics depend on the kind, size, and nature of your business, and if you have questions about how these factors apply to you, contact a Houston estate planning attorney you can trust.

What happens without an estate plan?

Unfortunately, without an estate plan in place, business owners can leave things in shambles when they pass. In some cases, the probate court can could freeze a decedent’s business account if there is no valid estate plan. An attorney will then have to petition the court for an emergency order to get permission to both handle the business’s affairs and decide how to deal with the business’s assets. The attorney, along with the decedent’s heirs, will be left to figure out how to figure everything out in a pinch. This can be stressful for beneficiaries and detrimental to the business at hand.

What factors should a business owner consider when drafting an estate plan?

Some questions related to your estate plan that you might want to consider if you are a business owner include:

What happens if you are sued?
How can you protect your business from liquidation or seizure?
What is your business worth now? What might it be worth in 10 years?
How will your heirs have liquidity to pay estate taxes on an estate if most of the value of the estate is tied up in a family business?
What should you do if you are selling the business and anticipating a large tax bill?

When It’s Time to Consider Adding a Trust to Your Texas Estate Plan

Published on: July 5, 2024 | By Thomas W. McCulloch

As many of our clients know, the trust can be a valuable estate planning tool for those who choose to use it. If you are wondering whether adding a trust to your estate plan might be the right next step for you, consider the following reasons that many individuals choose to utilize the trust in their estate planning processes.

You Want to Avoid Probate

The most common reason to add a trust to an estate plan is to avoid having to go through the probate process. When a person dies with a will, the will’s executor must present the will to the probate court. The court reviews the will, decides it is valid, then approves the distribution of the decedent’s assets. This process takes time and resources, and it can be frustrating for families to have to wait for the court proceedings to play out over a series of months.

A trust, on the other hand, is exempt from probate. By putting your assets in a trust, these assets can go directly to your intended beneficiaries instead of passing through probate court. Avoiding probate has the added benefit of ensuring privacy for the decedent and their family, since no documents become part of the public record when they are part of a trust.

What is the Difference Between a Will and a Trust?

Published on: July 3, 2024 | By David W. Miller

As our client community knows, there are many tools available for individuals undergoing the estate planning process. Two of these tools are the will and the trust, and there are important differences between the two. To find out whether a will or a trust is better for your individualized estate plan, we always recommend that you contact an experienced Houston estate planning attorney that can apply the law to your goals and circumstances.

What is a Will?

In short, a will is a legal document that dictates how your property will be distributed upon your death. The will typically lists assets the beneficiaries, and it provides instructions for how exactly to dole out these assets. The probate court is typically involved in making sure the will is valid and in giving a stamp of approval to distribute the will’s assets.

What is a Trust?

A trust, on the other hand, is not a legal document but a legal contract. The trust puts assets into an account, and that account is managed by another person. A trust also has beneficiaries, just like a will. The trust, though, directs the manager (the “trustee”) to distribute the assets in a way that aligns with the trust’s goals.

How to Determine Which Type of Trust You Need

Published on: June 30, 2024 | By David W. Miller

How to Determine Which Type of Trust You Need

We speak with our clients time and time again about the value of adding a trust to an estate plan. If you have wondered whether a trust might be the right tool for you, the next step would be to decide which type of trust is right based on your circumstances. Below are several tips for deciding the kind of trust your estate plan needs. As always, with questions about how these options might apply to your estate plan, give us a call at McCulloch & Miller today.

1. Decide who you want to benefit from the trust.

Deciding the trust’s beneficiaries is a great first step. If your intended beneficiary is a nonprofit or cause you care about, a charitable trust could be right for you. If you have a spouse or loved one with special needs, creating a special needs trust would allow that person to receive important medical benefits while maintaining access to funds they need. If you want to pass money down to your children and grandchildren, you could set up a lifetime trust, which would allow your heirs to benefit from liability protection and consistent funds for their entire lives.

2. Think through your financial situation.

A trust can be revocable or irrevocable. If it is revocable, you can change it as time goes on; if it is irrevocable, you cannot change it without the consent of all beneficiaries. While an irrevocable trust is more complex and expensive to set up, it also has the benefit of protecting your assets from creditors, litigation, and estate taxes. If you are subject to any kind of money judgment, the irrevocable trust might be your best option.