Houston Estate Planning and Elder Law Attorney Blog

What Will Boomers Do When They Need Long-Term Care?

Published on: October 25, 2019 | By McCulloch & Miller, PLLC

A generation seems to be waking up to the concept that they are likely to need to care for a spouse or a family member, and they’re taking it seriously.

A study from Bankers Life Center for a Secure Retirement reported that 90% of baby boomers surveyed understand that they will need to make significant lifestyle changes as part of caring for a loved one. Not only are they aware of this as a new role, but according to Think Advisor’s article, “Long-Term Caregiving Realities Hit Home for Boomers” they are willing to take a number of steps, including:

Cut spending: 66%

How Doctors Can Protect Assets

Published on: October 23, 2019 | By McCulloch & Miller, PLLC

Any high-income professional must expect that at some point there will be a bad outcome and a lawsuit against them and/or their practice. Doctors, in particular, need to be sure that they have the correct protection in place.

Whether you are a surgeon, chiropractor or cardiologist, at some point in time, some patient is going to commence a lawsuit alleging malpractice, warns Physician Sense in the article “The Do’s and Don’ts of Asset Protection for Doctors.”

With a good chance of being involved in a malpractice suit at some point in your career, the time to think about protecting your assets is right now, before a patient sues. After the fact, this might look like a way to avoid a creditor. Many courts will cancel those actions.

Is There a Way to Avoid Paying Taxes on a Jointly-Owned Home?

Published on: October 21, 2019 | By McCulloch & Miller, PLLC

There are many inheritance scenarios, where people hope that a simple solution will save them time and money. Unfortunately, that’s not always the way estate or tax laws work.

A woman received joint ownership of her father’s house about a decade ago. Her father is still living there, and so is her sister. The woman doesn’t pay for any of the expenses; she and her father take care of their own costs. The sisters plan on selling the home, after their father passes. The woman wonders if she can simply give her sister her half of the home and avoid paying any taxes.

This situation is expanded upon in recent nj.com article, “My sister and I own my father’s home. How can I avoid taxes?” The article notes that a sibling may give her half of a home owned in joint ownership to a sibling, but there may still be some tax consequences.

Should A Trust be an IRA Beneficiary?

Published on: October 18, 2019 | By McCulloch & Miller, PLLC

An IRA is one of the most popular ways to save for retirement. The possibility, however small, does exist that you will pass before using the entire IRA. How do you decide who to leave your IRA to?

In addition to leaving assets, including IRAs and 401(k)s, to heirs, you can also leave assets to a trust. When you first open an IRA, you are asked to designate a beneficiary. However, over time you may find yourself wanting to change that designation. You may also be doing sophisticated estate planning that involves having a trust as the beneficiary for your IRA.

KTVA.com’s recent article, “How to Name a Trust as Beneficiary of an IRA,” discusses some of the important elements of naming a trust as an IRA beneficiary. Naming a trust as a beneficiary requires careful planning, so work with an experienced estate planning attorney.

Make Sure Your Estate and Your Kids are Ready for the Kiddie Tax

Published on: October 16, 2019 | By McCulloch & Miller, PLLC

Whenever there are major changes to tax laws, estate plans need to be reviewed. The change to the kiddie tax because of the Tax Cuts and Jobs Act of 2017 is an excellent example of this.

If your estate plan includes passing down traditional IRAs to children and grandchildren, you better make an appointment with your estate planning attorney soon. Changes that began with the 2017 Tax Cuts and Jobs Act may turn your planning inside out. Your children might find themselves in the top tax bracket, which is not likely what you had in mind.

The Tax Cuts and Jobs Act brought about a big change in how children are taxed on unearned income. This includes required minimum distributions (RMDs) from inherited IRAs.

Millennials Cautious About the Stock Market

Published on: October 15, 2019 | By McCulloch & Miller, PLLC

Sounding more like their great grandparents than their parents, millennials say they’d rather buy real estate than invest in markets. However, they might be heading in a dangerous direction.

When Bankrate asked more than 1,000 Americans where they would prefer to invest money—long-term funds that they don’t need for another decade—the response was surprising. Slightly more than thirty percent said they would invest in real estate.

For young people, this preference is especially true. Among millennials (those ages 23 to 38), 36% responded that real estate is the best long-term investment option. Zero-risk cash investments, such as high-yield savings accounts or CDs, was second with 18% of respondents, and the stock market was third, with 16% of respondents.

Picking a Power of Attorney and Keeping the Peace

Published on: October 14, 2019 | By McCulloch & Miller, PLLC

In many families, it’s easier to figure out the ‘who gets what’ part of an estate plan than it is to decide which person should be power of attorney. Which adult child can handle finances, which one is better with decisions during a crisis?

Making the decision about which family member will take on the responsibility of power of attorney may be a little easier, if you have a clear understanding of what the role entails. Your estate planning attorney has seen every possible family dynamic and will be able to help you work through this decision.

Considerable’s recent article, “How to assign power of attorney without sparking a family feud,” gives us some idea how the power of attorney can work within a family and among siblings.

Why 59 ½ is A Milestone to Celebrate

Published on: October 11, 2019 | By McCulloch & Miller, PLLC

Those who happily enjoy senior discounts at national parks, fast food restaurants and movie theaters will tell you that turning 59 ½ is no big deal. Chances are at 59 ½, you’re still enjoying good health, working productively and wise enough to know you’re a bit smarter than you were back in the day.

59 ½ is around the time that people wake up to the idea that hey, they really are getting older. With that realization, they need to embrace the financial benefits of their age and there are more than a few, according to the article “What Should You Do When You Turn 59½?” from Kiplinger. Here are some of the advantages, and also a few to-do items.

Review Your 401(k). At age 59½, you reach the magic age when you can start taking money out of your retirement accounts without penalty. That’s not to say it’s time to drain your accounts, but it does give you more options.

How Life Insurance Works During Retirement

Published on: October 9, 2019 | By McCulloch & Miller, PLLC

Life insurance is a financial tool that can be as powerful during retirement, as it is during your working life. In many cases, it can be a real lifesaver for a surviving spouse.

Most of us think about life insurance as income replacement for a breadwinner’s salary. That is certainly true. However, life insurance doesn’t stop being useful during the later years, says Kiplinger in a recent article, “Don't Overlook Advantages of Making Insurance Part of Your Retirement Plan.”

The income replaceme nt function doesn’t go away during retirement. It might even be more important.

How a Will Help A Child Manage Distributing Your Property

Published on: October 7, 2019 | By McCulloch & Miller, PLLC

A single parent wonders if they need a will, or if just making an account a Payable on Death or POD account will be an adequate solution for transferring his assets when he dies.

Even if you have only one child, if you have no will, things will be complicated for her or him. You may wonder if you can simplify matters, just by creating a POD account with their name as the person to inherit the account when you die. However, what if you have other property, like a car, a tax or credit card refund, or any other asset that is not part of that account? Yes, that property will pass to the sole child by intestacy. However, having a will could make it far easier for your child.

nj.com’s recent article asks “Do I really need a will to help my son when I die?” The article explains that by naming your only child as the beneficiary on a POD or Transfer on Death (TOD) account, that move only governs the transfer of that particular account at your death.