Houston Estate Planning and Elder Law Attorney Blog

Charitable Giving Through Estate Planning

Published on: March 16, 2025 | By Thomas W. McCulloch

Many of our clients have causes or organizations that matter deeply to them and that they want to financially support. There are many ways to incorporate charitable giving into your estate plan, and the tool you end up choosing to structure your charitable giving will depend on your own goals and finances.

Option 1: Use Your Will or Trust

You always have the option of giving assets to a charity by naming that charity directly in your will. You can also establish a trust to give money – there is a) a charitable lead trust, which allows you to donate during your lifetime while still leaving money for your heirs, and b) a charitable remainer trust, which provides income during your lifetime but gives the leftover assets to a charity at the end of the trust’s term.

Option 2: Leverage Your Retirement Account

Certain retirement accounts are eligible for charitable giving, meaning you can leave the retirement assets to a nonprofit when you die. By gifting the money in your retirement account, you both avoid a major tax penalty in your estate and allow the receiving charity to avoid paying income taxes on your gift.

The Role of Affidavits of Heirship in Texas: When and How They Can Be Used

Published on: March 13, 2025 | By David W. Miller

An affidavit of heirship is a relatively simple estate planning tool that can have a major impact on certain beneficiaries. On today’s blog, we review the basics around affidavits of heirship, so that you can familiarize yourself with when and how they can be used for your advantage. If you or your loved ones have specific questions about these affidavits, contact a Houston estate planning attorney you can trust.

What is an Affidavit of Heirship?

An affidavit of heirship is a legal document that plainly states the names of a decedent’s heirs. Any individual declaring that they are an heir must swear that they bear a relation to the decedent. At least two people who are not involved in the decedent’s estate (but who did know the decedent) must sign the affidavit, which helps boost its reliability. The affidavit requires certain facts regarding the decedent’s information, each heir’s information, and the property to be distributed. When filling out an affidavit of heirship, it is important to make sure these details are accurate in order to ensure a smooth transfer of property from one party to the next.

Why Use an Affidavit of Heirship?

Affidavits of heirship come most in handy when A) a person dies without a will and B) that person’s estate is relatively small. The affidavit of heirship is most commonly used to transfer real estate, as opposed to cash or accounts. The decedent’s heirs can file the affidavit with the court, and once the court approves the affidavit, the heirs can bypass probate entirely. This saves beneficiaries time and money, and it helps ensure efficiency as assets transfer from the decedent’s estate to the beneficiaries.

What Happens if a Beneficiary Dies Before You Do?

Published on: March 9, 2025 | By Thomas W. McCulloch

As part of your estate planning process, you choose beneficiaries to inherit different parts (or the totality) of your estate. What happens, though, if a beneficiary dies before you do? Today’s blog covers several different possible outcomes that your loved ones could expect in this scenario.

To start, if one of your known beneficiaries passes away, you should contact your estate planning attorney as soon as possible to update your will. You should generally update your estate plan every 3-5 years or after a major life event. The death of a beneficiary qualifies as one of these major life events.

If you are not able to amend your estate plan in time, though, there are several possible outcomes for your assets. The first possibility occurs when you have named both a primary beneficiary and a contingent (or secondary) beneficiary in your estate plan. In this scenario, if your primary beneficiary dies, the contingent beneficiary will stand to inherit.

Why Business Owners Need a Buy-Sell Agreement in Their Estate Plan

Published on: March 7, 2025 | By David W. Miller

woman retirement risks and estate planning

A buy-sell agreement is a legal provision of an estate plan that details how the estate owner’s business will transition to different ownership when he or she dies. Buy-sell agreements are critical for business owners’ estate plans, as they help ensure that a business can continue to thrive even if the unexpected occurs. On today’s blog, we review some of the basics of the buy-sell agreement, as well as why they are so important for estate planners to consider.

What are the Elements of a Buy-Sell Agreement?

Each buy-sell agreement can look different, and the particular elements will depend in large part on the business owner’s goals. It is common, however, for a buy-sell agreement to include a list of triggering events that put the buy-sell agreement into effect. While the owner’s death will certainly qualify as a triggering event, it’s likely that the owner’s incapacitation and/or voluntary departure will also be triggering events.

The agreement will also include information about how to value the business, the specific buy-out procedures, and restrictions on who is legally able to purchase the owner’s shares of the company. These provisions should be as thorough and detailed as possible.

Why a Flat Fee for a Probate Attorney Makes the Most Sense

Published on: February 28, 2025 | By Thomas W. McCulloch

If you are navigating the probate process, you have likely investigated the options for legal representation and probate legal services. When choosing an attorney, we recommend looking for someone with experience, positive reviews, and a client-centered approach to their practice. It is equally important, however, to make sure you find someone who is transparent about their fee structure.

Option 1: Flat Fee

A probate attorney could either charge a flat fee or a percentage of the estate’s value. Which one is better? Without a doubt, we believe the flat fee wins every time. When a probate attorney tells you that they charge a flat fee, you can know from the beginning of your work with that attorney the total cost you will end up paying. This fee does not change no matter the size of your estate or the amount of time it takes your attorney to settle the matter in probate court.

One word of caution on the flat fee is to always inquire as to what this fee does not include. For example, does the fee cover court costs? If not, what court costs will you incur? Might there be appraiser’s fees? Or are there any other possible bills you could be responsible for paying? Asking these questions up front can make sure you have full transparency about what you will owe at the end of the probate process.

Options When it Comes to Funding a Trust

Published on: February 23, 2025 | By David W. Miller

Many people assume that when it comes to funding a trust, money from a bank account is the only possible source of assets. Today’s blog post serves to dispel that misconception, because there are many different options available to individuals looking to fund their trusts. There are also important procedural steps to keep in mind if you are thinking of starting your own trust, and we will review some of those steps today. As always, with specific questions about how this blog post applies to you, contact an experienced Houston estate planning attorney for tailored legal advice.

Assets Used to Fund a Trust

Before funding your trust, it is important to write a list of all of the assets you might put into the trust. These assets can include: bank accounts, real estate, investment accounts, retirement accounts, stocks, brokerage accounts, and even personal belongings. Your accounting of your assets should be as detailed as possible so that you have a comprehensive understanding of what you could use to fund your trust.

Legal Services

Also before funding the trust, you will also need to create a trust document with the help of an attorney. The trust document should name your trustor, your trust’s purpose, the trust’s beneficiaries, and the instructions for carrying out the intended purpose. This document should be as detailed as possible and should conform with Texas laws.

Using Life Insurance Trusts to Protect Your Legacy

Published on: February 20, 2025 | By Thomas W. McCulloch

If you are looking for ways to ensure that your loved ones are well-protected in the event of your death, consider the advantages of a life insurance trust. A life insurance trust is a form of legal agreement that puts the grantor’s life insurance into a trust. The designated trustee gains control of the insurance policy, and when the grantor dies, the trustee is responsible for distributing the money from the policy to the grantor’s designated beneficiaries.

Why Use a Life Insurance Trust?

There are several key advantages to the life insurance trust. First, by putting your life insurance into a trust, you allow the funds from the policy to bypass probate completely. This gets money into your beneficiaries’ hands more quickly, more efficiently, and more privately.

The life insurance trust also guarantees some form of liquidity when you die. The cash from the policy can go toward settling the estate, paying off debts, covering the cost of a funeral, or paying estate taxes. The money could also provide your beneficiaries with immediate cash for payments that you might have been making before your death, so that they can have time to figure out a long-term solution in your absence.

What Houston Families Need to Know When It Comes to Planning for Long-Term Care

Published on: February 16, 2025 | By Thomas W. McCulloch

health savings accounts in estate planning

There’s no way around it: long-term care in the United States is expensive. At McCulloch & Miller, we help families plan for the later years of their loved ones’ lives, and for many clients, this can be a daunting process. After several decades of working in the industry, there are several things that we believe Houston families need to know when it comes to planning for long-term care.

Long-Term Care Costs

To find out a realistic estimate of what long-term care might cost you and your loved ones, we recommend using this resource from carescout.com. The unfortunate reality is that you should expect to spend a minimum of approximately $100,000 per year on long-term care, if you are paying out of pocket. This cost is rising every year, but it is important to note that your cost will depend on factors like the level of care you might need.

Payment Options

There are three basic options when it comes to financing a nursing home, a retirement community, assisted living, or a live-in aide: paying out of pocket, using long-term care insurance, or applying for Medicaid. Paying out of pocket allows the greatest amount of flexibility, but it is unrealistic for most individuals given the rising costs of long-term care. Long-term care insurance is a viable option, but it requires paying into the insurance early on. It also involves some risk, in that if you do not end up needing the care your insurance would cover, you lose the money you have invested.

Why Business Owners Need a Buy-Sell Agreement in Their Estate Plan

Published on: February 14, 2025 | By David W. Miller

A buy-sell agreement is a legal provision of an estate plan that details how the estate owner’s business will transition to different ownership when he or she dies. Buy-sell agreements are critical for business owners’ estate plans, as they help ensure that a business can continue to thrive even if the unexpected occurs. On today’s blog, we review some of the basics of the buy-sell agreement, as well as why they are so important for estate planners to consider.

What are the Elements of a Buy-Sell Agreement?

Each buy-sell agreement can look different, and the particular elements will depend in large part on the business owner’s goals. It is common, however, for a buy-sell agreement to include a list of triggering events that put the buy-sell agreement into effect. While the owner’s death will certainly qualify as a triggering event, it’s likely that the owner’s incapacitation and/or voluntary departure will also be triggering events.

The agreement will also include information about how to value the business, the specific buy-out procedures, and restrictions on who is legally able to purchase the owner’s shares of the company. These provisions should be as thorough and detailed as possible.

Charitable Giving Through Estate Planning

Published on: February 11, 2025 | By Thomas W. McCulloch

Many of our clients have causes or organizations that matter deeply to them and that they want to financially support. There are many ways to incorporate charitable giving into your estate plan, and the tool you end up choosing to structure your charitable giving will depend on your own goals and finances.

Option 1: Use Your Will or Trust

You always have the option of giving assets to a charity by naming that charity directly in your will. You can also establish a trust to give money – there is a) a charitable lead trust, which allows you to donate during your lifetime while still leaving money for your heirs, and b) a charitable remainer trust, which provides income during your lifetime but gives the leftover assets to a charity at the end of the trust’s term.

Option 2: Leverage Your Retirement Account

Certain retirement accounts are eligible for charitable giving, meaning you can leave the retirement assets to a nonprofit when you die. By gifting the money in your retirement account, you both avoid a major tax penalty in your estate and allow the receiving charity to avoid paying income taxes on your gift.