Houston Estate Planning and Elder Law Attorney Blog

How Does Life Insurance Factor into Estate Planning?

Published on: January 27, 2020 | By McCulloch & Miller, PLLC

Some people think once the children are all grown up, with spouses and children of their own, that they don’t need life insurance. However, it can play a valuable role in protecting the family and transferring wealth.

With estate tax exclusions at levels that make them a non-issue for most Americans, the practice of purchasing second-to-die life insurance policies to prepare for estate tax costs has faded.

However, IRAs, 401(k)s, and other accounts are still 100% taxable to the individuals, spouses and their children. The stretch IRA options still exist, but they may go away, as Congress may limit stretch IRAs to a maximum of 10 years.

Why are IRA Beneficiary Designations So Important?

Published on: January 22, 2020 | By McCulloch & Miller, PLLC

If you pass away without naming beneficiaries in your will, it can create legal entanglements for your heirs.

If you decide to purchase a life insurance policy or to put some money into a new deferred annuity contract or Individual Retirement Account (IRA), you need to complete the beneficiary form.

However, Investopedia’s recent article entitled “Why Your Will Should Name Designated Beneficiaries” says that you may just name a person as a beneficiary, without fully appreciating this aspect of your estate planning.

Scams are Being Perpetrated on Veterans, Active Military and Their Families

Published on: January 20, 2020 | By McCulloch & Miller, PLLC

“In 2018, 9.4% of all reports to BBB’s ScamTracker came from military personnel, veterans or their spouses, BBB of Metropolitan New York said.”

The scam victims who were military personnel, veterans or their spouses reported higher median losses than non-military consumers, the BBB said.

nj.com says in its recent article entitled “Veterans warned to beware of scams that target military families” that a common scam is “pension poaching,” which targets elderly and disabled veterans and their families.

Mistakes to Avoid when Planning Estates

Published on: January 17, 2020 | By McCulloch & Miller, PLLC

“Five of the most common mistakes are easy to avoid with the right information and support, as well as a little creativity.”

Because estate planning has plenty of legal jargon, it can make some people think twice about planning their estates, especially people who believe that they have too little property to bother with this important task.

Comstock’s Magazine’s recent article entitled “Five Mistakes to Avoid When Planning Your Estate” warns that without planning, even small estates under a certain dollar amount (which can pass without probate, according the probate laws in some states) may cause headaches for heirs and family members. Here are some big mistakes you can avoid with the help of an experienced Houston estate planning attorney:

What Don’t I Know about My Roth IRA?

Published on: January 15, 2020 | By McCulloch & Miller, PLLC

New research from TD Ameritrade finds that many individuals are confused when it comes to Roth IRAs — accounts that are funded with post-tax money. Consequently, many people are leaving cash on the table, when it comes to maximizing this savings strategy.

CNBC’s recent article entitled “Not knowing these Roth IRA truths can cost you” explains the biggest things that investors typically don’t know about Roth IRAs. They include not knowing how to decide between a Roth IRA and Traditional IRA, along with the fact that you can contribute to a 401(k) and a Roth IRA.

You’re allowed to contribute to a 401(k) and a Roth IRA. Many workers get their retirement savings education from their employer. Those employer-provided plans are usually 401(k) plans, and you generally want to contribute enough to that account to get the employer match. However, what 60% of investors incorrectly think is that you can only contribute to a Roth once you reach your 401(k) maximum, according to TD Ameritrade’s research. It’s okay (and smart) to be contributing to both a Roth IRA and a 401(k) at the same time. You don’t have to hit the 401(k) max to contribute to a Roth IRA.

Some Surprising Facts about Retirement

Published on: January 13, 2020 | By McCulloch & Miller, PLLC

Check out some often-overlooked retirement planning facts of life that everyone should be aware of.

It’s crucial to have a plan for your retirement, so let’s get educated. There are some facts you might not know about retirement, like the way in which your Social Security benefit can be taxed and how to factor in travel expenses.

Kiplinger’s recent article entitled “5 Surprising Facts to Know About Retirement” gives us five important facts to learn about retirement.

How Do I Incorporate My Business into My Estate Planning?

Published on: January 9, 2020 | By McCulloch & Miller, PLLC

“Running and owning a business is just like raising a child: Both are investments in the future, and both require a lot of time, resources and effort to raise successfully. One can argue that you would treat your business like you'd treat a child; you'd want it to succeed even after you've passed on or retired.”

When people think about estate planning, many just think about their personal property and their children’s future. If you have a successful business, you may want to think about having it continue after you retire or pass away.

Forbes’ recent article entitled “Why Business Owners Should Think About Estate Planning Sooner Than Later” says that many business owners believe that estate planning and getting their affairs in order happens when they’re older. While that’s true for the most part, it’s only because that’s the stage of life when many people begin pondering their mortality and worrying about what will happen next or what will happen when they're gone. The day-to-day concerns and running of a business is also more than enough to worry about, let alone adding one's mortality to the worry list at the earlier stages in your life.

How Will the New SECURE Act Impact My IRAs and 401(k)?

Published on: January 7, 2020 | By McCulloch & Miller, PLLC

“A new law could affect the IRAs and 401(k)s of millions of Americans in 2020.”

The SECURE Act is the most substantial change to our retirement savings system in over a decade, says Covering Katy (TX) News’ recent article entitled “Laws Change for IRA and 401K Retirement Savings Plans.” The new law, called the Setting Every Community Up for Retirement Enhancement (SECURE) Act, includes several important changes. Let’s take a look at them.

There is a higher age for RMDs. The current law says that you must start taking withdrawals or required minimum distributions from your traditional IRA and 401(k) or similar employer-sponsored plan when you turn 70½. The new law delays this to age 72, so you can hold on to your retirement savings a while longer.

Is It Time to Sell My Baseball Card Collection?

Published on: January 6, 2020 | By McCulloch & Miller, PLLC

“Call it an astute estate planning move, but I didn’t want to leave eight notebooks of baseball cards encased in plastic sleeves for my children to sort through down the road.”

It may be time to sell your baseball card collection.

Arizona Daily Star’s recent article entitled “The valuable lessons learned from collecting baseball cards” explains that the market is strong for 1960s-era cards.

I’m Between 55 and 64, How Do I Boost My Retirement Savings?

Published on: January 2, 2020 | By McCulloch & Miller, PLLC

“If you're between 55 and 64, you still have time to boost your retirement savings. Whether you plan to retire early, late, or never ever, having an adequate amount of money saved can make all the difference, both financially and psychologically. Your focus should be on building out—or catching up, if necessary.”

It’s never too soon to begin saving. However, the last decade prior to retirement can be crucial. By then you’ll probably have a pretty good idea of when (or if) you want to retire and, even more important, still have some time to make changes, if need be.

If you discover that you need to put more money away, Investopedia’s article “Top Retirement Savings Tips for 55-to-64-Year-Olds” gives you several time-honored retirement savings tips to consider.