Houston Estate Planning and Elder Law Attorney Blog

Why Do I Need a Durable Power of Attorney?

Published on: July 10, 2019 | By McCulloch & Miller, PLLC

Having a durable power of attorney in place makes sense for some people. If you unexpectedly became ill or incapacitated, this would allow someone to take over your finances, including paying bills, checking on investments and managing the business side of your life.

A power of attorney is a legal document that lets an individual name another person or a financial institution to handle financial transactions for another person. The person who is given power of attorney, who becomes the individual’s “agent,” has a lot of responsibility, says WMUR’s recent article, “Why you need a financial durable power of attorney.” When there is no power of attorney in place, the spouse or family will need to go to court, before they can act on their loved one’s behalf.

Whether you’re young, elderly, single or married, it’s a good idea for everyone to have a power of attorney. For married couples, while your spouse can usually take care of the basic finances, many financial transactions require both spouses’ signatures. For those assets in your name only, your spouse will have no access.

Who Pays the Car Lease if the Lease Holder Dies?

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

If you are among the millions of Americans who prefer to lease a car rather than buy it, you have obligations that are spelled out in the lease agreement. That contract and the laws of your state direct what happens, when a lease owner passes away.

What if the salesman at the car dealership shakes your hand and says don’t worry about a thing when you ask if your spouse is responsible for a lease if you die? Check the fine print, advises nj.com in the article “What happens to my car lease when I die?” There are a few parties to that contract, including the car dealership, the financing company and the person leasing the car.

Remember that a vehicle lease is a contract, so if you're the executor who’s managing the deceased person's affairs, you should review the terms of the vehicle lease. In some instances, death may be classified as an "early termination" of the lease, and payment obligations may continue.

Medicare Doesn’t Cover Everything

Published on: July 8, 2019 | By McCulloch & Miller, PLLC

Life before Medicare was a real struggle for seniors without healthcare coverage. Today’s program still works wonders, but it doesn’t cover everything.

Once you turn 65, you are eligible to take part in the Medicare system of healthcare. It can be a little confusing to apply, and sometimes a little hard to figure out what it will and won’t cover. Traditional Medicare, also known as “Original Medicare,” should cover most of your medical expenses through Medicare Part A and Part B. Part A is all about hospital insurance: inpatient stays, skilled nursing facilities for some costs, surgery, hospice care and some home health care. Part B helps to pay for things like some medical equipment and supplies, some preventive services, doctor visits and outpatient care. Three months before you reach age 65, you need to sign up for Medicare.

Kiplinger’s article, “7 Things Medicare Doesn't Cover,” takes a closer look at what isn't covered by Medicare, plus some information about supplemental insurance policies and strategies that can help cover the additional costs, so you don't end up with unanticipated medical bills in retirement.

What to Do With a Timeshare When the Owner Dies Without a Will

Published on: July 5, 2019 | By McCulloch & Miller, PLLC

Some people love their timeshares and plan their getaways around the timeshare company’s offerings. Others are excited at the start, and then find that it simply doesn’t work for them. For heirs, a timeshare can be problematic.

When a timeshare owner dies, the timeshare will usually be part of the deceased owner’s estate, according to nj.com’s recent article, “My dad had a timeshare and died without a will. I don’t want it. What do I do?” The contractual obligations of the timeshare owner become the responsibility of the next-of-kin or the beneficiaries of the estate.

When the timeshare company hears of the owner’s death, they may keep sending letters to him for his expenses. Is there any way that the owner’s children could be held responsible for the timeshare expenses?

Digital Assets and Your Estate Plan

Published on: July 3, 2019 | By McCulloch & Miller, PLLC

Digital property needs to be addressed in your estate plan just as tangible assets like real estate. Not planning for a digital afterlife is increasingly important.

How many hours do you spend on your smart phone, laptop or desktop, busy with work emails, personal emails, social media platforms, gaming, networking and more? In addition to the time spent, chances are good you have many digital properties: photos, music, financial accounts and more. Today’s estate plan needs to include your digital afterlife.

Without a clear plan in place, it can be a major headache for your family when you pass away, says The Street in the recent article, “Estate Planning in a Digital World.”

How Does a Medicaid Annuity Work?

Published on: July 1, 2019 | By McCulloch & Miller, PLLC

When one spouse needs nursing home care and the other is healthy, there are several approaches that can be taken to securing Medicaid coverage. An elder law estate planning attorney should be contacted, since every situation is different. For some couples, a Medicaid-compliant annuity may be a solution.

What happens when one person needs long-term nursing home care, but does not have long-term care insurance and the family cannot afford to pay out of pocket? Applying for Medicaid is difficult if you have too much money to qualify, but not enough to allow the healthy spouse to afford to pay their bills.

Doing a “Medicaid spend down” requires the person to become broke, before they are eligible. What happens to the spouse’s lifestyle? One solution is a Medicaid Annuity, as described in U.S. News and World Report’s recent article, “What Is a Medicaid Annuity?”

Why Are Handwritten Wills Risky?

Published on: June 27, 2019 | By McCulloch & Miller, PLLC

While there are a surprising number of states that do accept holographic or handwritten wills, there are still requirements that must be met, or the will is deemed invalid.

After her death last August, it was thought that Aretha Franklin had no last will and testament. However, as relatives have been going through her home and personal effects, it appears that not only did she have a will, she handwrote three wills, including one that was found stashed under a cushion.

Each of Aretha’s wills is handwritten. The three documents have been submitted as part of the probate process to have the court determine if any of them will have legal standing.

Elder Abuse Numbers Continue to Increase

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

The number of seniors being exploited or abused quadrupled from 2013-2017. Tracked now by a number of financial institutions that submit data to FinCEN, a federal government watchdog agency, elder abuse has become a national epidemic.

More than 180,000 Suspicious Activity Reports submitted by banks to the federal government were analyzed by the Consumer Financial Projection Bureau (CFPC). For professionals working in estate planning and probate law, the numbers are not surprising. They routinely hear tales of exploitation by scammers, family members and caregivers from families who are seeing elderly loved ones being taken advantage of, says ABC 15 Phoenix’s recent online report, “Protecting seniors from financial predators.”

Families reach out to these attorneys who specialize in senior issues because they're concerned that a grandparent or parent is being scammed.

Can I Sell A Long-Term Care Insurance Policy?

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

If a couple is thinking that they can sell the long-term care portion of a policy, because their HMO will cover the cost of long-term or skilled nursing care, they need to think again.

All too often, people think that they have found a simple solution to a complicated problem, and then it turns out that it doesn’t work the way they thought it would. To prevent an expensive mistake, speak with an experienced estate planning attorney, before making an expensive mistake.

While there is a market to sell life insurance through what is known as a life settlement, there’s no market for long-term care policies.

Is a Death Tax the Same as an Inheritance Tax?

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

Estate tax, death tax, income tax and inheritance tax: what do they mean for your estate and your heirs? You’ll want to be sure to know the difference between them, as you create your estate plan.

Most people don’t have to worry about the federal estate tax, which is often referred to as the death tax. Unless your estate is valued at more than $11.4 million ($22.8 for couples), you won’t be paying this tax. However, says Forbes in a recent article, “Eight Things You Need To Know About The Death Tax Before You Die,” that doesn’t mean your estate and your heirs won’t have to pay income taxes or inheritance taxes.

Assets in your name only and everything else you had control over will be added into your gross estate. For example, all stocks, bonds, bank accounts and life insurance death benefits are included, as well as any real estate, business interests, jewelry, household furnishings and artwork.