Houston Estate Planning and Elder Law Attorney Blog

Is a Trust Right for Your Estate Plan?

Published on: July 24, 2019 | By McCulloch & Miller, PLLC

A trust is a complex document, but taking the time to read it a few times will prove enlightening. If you have questions, call your estate planning attorney, so they can help clarify anything you don’t understand.

Attorneys do try to simplify documents when they can, so that clients will have a better understanding of what goes into their estate plans. However, according to a recent article from Forbes, “A Beginner's Guide To Reading A Trust,” there’s still enough legal language in trusts that they can sometimes be confusing. Here are some basics about trusts.

First, familiarize yourself with the terms. There are basic terms of the trust that you’ll need to know. Most of this can be found on its first page, such as the person who created the trust. He or she is frequently referred to as the donor, grantor or settlor. It is also necessary to identify the trustee, who will hold the trust assets and administer them for the benefit of the beneficiaries, and any successor trustees.

When Is It Time to Update A Will?

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

Notice that the title is not “if” you need to update a will, but “when.” A will is like the family pet—it can protect the house and demonstrate your love for your family. However, you have to take care of it.

People often comment when they complete their estate planning, that they feel so good to have done this very important task. It’s a great feeling to know that you’ve made the necessary preparations to protect your family and preserve your legacy. However, this is not a one-and-done event.

Thrive Global’s recent article, “7 Reasons Why You Need to Review your Will Right Now,” says it’s extremely important that you regularly update your will to avoid any potential confusion and extra stress for your family at a very emotional time. As circumstances change, you need to have your will reflect changes in your life. As time passes and your situation changes, your will may become invalid, obsolete or even create added confusion, when the time comes for your will to be administered.

These Money Mistakes Add Up Fast

Published on: July 22, 2019 | By McCulloch & Miller, PLLC

It’s not how much you earn, but how much you keep that makes the difference in lifestyle and retirement. Keep more of your hard-earned money, by making fewer money mistakes.

Some of the most common money mistakes cost thousands of dollars. All you need to do is pay attention to avoid them, says Motley Fool in the article, “5 Money Mistakes You Probably Don't Even Realize You're Making.” See if any of these sound familiar and take control of your financial health today.

No clue to recurring charges. Unless you regularly review your credit card bills, you can easily miss monthly charges that you don’t need, like not cancelling a gym membership. Some automatic monthly charges increase over time, which you won’t notice unless you’re checking those bills.

Where Will the Vanderbilt Wealth Go, If Not to Anderson Cooper?

Published on: July 19, 2019 | By McCulloch & Miller, PLLC

When Gloria Vanderbilt died at age 95, it was truly the end of an era. Her life included the high society world of old New York and the disco scene at Studio 54. However, her son Anderson Cooper reports that he won’t inherit any money from his mother.

Gloria Vanderbilt’s life in the spotlight began when she was very young. She remained in public view through a long and fascinating life. As a child, she and her trust fund were headlines in an epic divorce. Now that she has passed, speculation has reemerged about what happened to the Vanderbilt money. According to Trust Advisor’s article, “Does A Long Island Landscaper (And Not Anderson Cooper) Inherit Gloria Vanderbilt's Fortune?” the money may be long gone.

It’s reported that she had to sell off a few houses to pay the tax bills. Anything left behind is well-hidden in some estate planning documents. With her family fortune dwindling over time, Vanderbilt’s fashion empire came and went. However, the distributions kept coming to fill the holes.

Basics of a Special Needs Trust

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

Parents of special needs children need to be especially proactive about planning for the future. Their planning should start with an estate plan, that includes a Special Needs Trust.

It’s one of the hardest things for any parent to think about, but for special needs families, planning for the child’s needs when the parents have passed, is particularly important. Trying to determine how much money the child will need while the parents are living and after they have died is complicated.

A recent Kiplinger’s article asks “How Much Should Go into Your Special Needs Trust?” As the article explains, a special needs trust, when properly established and managed, lets someone with a disability continue getting certain public benefits.

Overturned Will Costs Cab Driver Hefty Legal Fees

Published on: July 17, 2019 | By McCulloch & Miller, PLLC

This bizarre story of an estate battle concerns a man who wanted to be driven to local pubs, a taxi driver and the passenger’s significant other.

A legal bill for an unusual estate battle must be now paid by a cabbie who had inherited a regular fare’s entire estate. The will was challenged by the man’s partner, who had been his heir, before the will was changed (over a pint in a pub) to favor the cabbie.

The New York Post’s recent article, “Cab driver slapped with massive legal fees after inheriting passenger’s estate,” explains that the bizarre story began years ago when British taxi driver Dean Hughes agreed to transport 348-pound Gary Mendez to various pubs. Many other cabbies refused to take him, because of his size.

George Michael’s Ex Isn’t Giving Up Just Yet

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

There were a lot of headlines after Kenny Goss and Michael’s former lover Fadi Fawaz were cut out of the late singer’s will. Fawaz is now reported to be planning to contest the will.

Most of the late George Michael’s £98 million estate will be shared by his sisters Yioda and Melanie. There were also provisions made in the will for his father Kyriacos, as well as for his close friends and former members of his staff.

“George was devoted to his dad and sisters, they were always going to be looked after,” a source told The Sun.

Stan Lee and Peter Max’s Elder Abuse Cases

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

There are definitely advantages to all the perks of fame and fortune that come with being a celebrity. However, aging celebrities are just as vulnerable as regular people, when it comes to elder financial abuse. The major difference is that their stories are reported in the news.

Recent news stories about both the late legendary Marvel comic book creator Stan Lee and ‘60s psychedelic artist Peter Max are sad reminders that elder abuse can happen to anyone, no matter how famous or talented they are. There are a few striking similarities in what happened to Peter Max and Stan Lee, as reported by Next Avenue in the article “Stan Lee and Peter Max: What to Learn From Their Elder Abuse Cases.”

Both of these highly creative and successful men were taken advantage of by people who they trusted and who they were close to. In Stan Lee’s case, Keya Morgan, his former business partner and caretaker, was arrested for elder abuse, false imprisonment and grand theft of an elder dependent adult. The family says Lee was isolated from the family and then moved out of his home. There is now a restraining order against Morgan.

What You Need to Know About Capital Gains and Dividend Income

Published on: July 12, 2019 | By McCulloch & Miller, PLLC

Almost every type of income comes with a tax consequence. Capital gains and dividends are both income but they are treated differently when it comes to taxes.

Understanding the difference between capital gains and dividend income can have an impact on portfolios and tax planning. That includes the difference in how these two incomes are taxed, says Investopedia in the article, “Capital Gains vs. Dividend Income: What's the Difference?”

Capital is the initial sum invested. A capital gain is a profit you get when an investment is sold for a higher price than the original purchase price. An investor doesn’t realize a capital gain until an investment is sold for a profit.

How Trusts Solve Problems in Estate Planning

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

Think of trusts like the Swiss army knives of estate planning. There are many different trusts that are used to accomplish many different tasks.

At its essence, a trust is a legal document that permits a third party, called the trustee, to hold assets on behalf of a beneficiary. The trustee has a fiduciary duty to the beneficiary, that is, the trust must put the beneficiary’s needs first. The trust document is drafted to address issues like how and when assets pass to the beneficiaries, what conditions must be met for the beneficiaries to receive assets, etc.

Because trusts usually avoid probate, the beneficiaries can get access to these assets more quickly than they might if the assets were transferred using a will. If it’s an irrevocable trust, it may not be considered part of the taxable estate, which means there will be fewer taxes due at your death.