Houston Estate Planning and Elder Law Attorney Blog

Have It Your Way, With a Will

Published on: July 2, 2018 | By McCulloch & Miller, PLLC

Without a will, decisions about your life, property and children will be made by someone who does not know you or your family. With a will, you have the ability to express your wishes. You need a will!

Having a will is not just for wealthy folks, who need to pass large amounts of money across generations. It is a legal document that protects you while you are living, protects minor children if you die and also distributes property after you pass. Less than half of all adults in America have an estate plan, according to a 2017 survey by Caring.com, and what’s worse, only 36% with children under the age of 18 have a will.

Inside Indiana Business’ recent article, “With a Will, It's Done Your Way,” explained that if you die without a will (i.e., intestate), the law of the state where you reside determines how your property will be distributed. For example, in Indiana, here’s what happens:

When is the Best Time to Start Taking Social Security?

Published on: July 2, 2018 | By McCulloch & Miller, PLLC

Consider these twin concepts—opportunity cost and delayed retirement credits—before you decide when to start taking Social Security.

By waiting until age 70, you’ll increase your monthly benefit, but at what cost? A recent article in Forbes, “Social Security Benefits: Getting Paid To Wait,” examines the dilemma. Money managers call it “opportunity risk:” if you take money from retirement accounts that would otherwise be invested and grow, in order to delay taking Social Security, you are risking the potential for that money to grow.

Can you plan for opportunity cost? Start by looking at whether to wait to take Social Security after your “normal” retirement age, which is 66 for most people. If you wait to claim at age 70, you’ll see the largest-possible Social Security benefit. If you’re not working, you’ll probably be withdrawing money from your retirement funds, which means that those funds won’t be able to grow for a period of several years. As a result, you’ll need to weigh the opportunity cost of not having funds growing tax-deferred in your retirement accounts, against the larger Social Security benefit you will eventually get.

Selecting an Executor: Not Always Easy

Published on: May 24, 2018 | By McCulloch & Miller, PLLC

Don’t delay finalizing your estate plan, because determining who to name as your executor is difficult. Here’s some help to figure out how to make this important decision.

If there are no family members or friends with the necessary skills, your best option may be to name your attorney as the third-party executor of your will. A useful article from nj.com, “Who should be executor of your will?” explains how this works.

An executor is a person you name in your will or who is appointed by the court and is given the legal responsibility to address a deceased person's remaining financial obligations. An executor is responsible for paying debts and creditors, filing tax returns, paying taxes, and distributing the estate's assets, pursuant to the deceased person's wishes as stated in the will.

Finding the Right Assisted Living Facility for Now and the Future

Published on: May 23, 2018 | By McCulloch & Miller, PLLC

People moving into an assisted living facility, should do a lot of research to make sure they get the quality care and the services they need. Their lives may depend on it.

Life in an assisted living facility is a welcome alternative to aging seniors who are no longer able to remain in their own homes, but don’t want or need to live in a nursing home, which often feels like living in a hospital. They can receive the services they need, while enjoying a full roster of activities and the companionship of their peers. It sounds like a good plan, and in many cases, it is.

However, Consumer Reports’ recent article, “5 Steps for Choosing the Right Assisted Living Community” says that finding the right residence can be a huge challenge.

What You Need to Know About Charitable Giving

Published on: May 22, 2018 | By McCulloch & Miller, PLLC

Even with the new tax laws in place, there are still advantages to philanthropy, at all levels of giving.

There are many ways to support causes that matter to you. Some charitable giving can be incorporated into your estate plan, according to Investopedia’s article, “A Primer on Philanthropic Vehicles.” However, some people enjoy giving while they are living, to have control over their generosity and enjoy the positive impact their giving has on others.

Cash is the most basic donation and is one that most people know about. That’s as simple as writing a check to the charity or other tax-qualified organization of your choosing.

When Special Needs Children Become Legal Adults

Published on: May 21, 2018 | By McCulloch & Miller, PLLC

The saying “little children, little problems, big children, big problems,” is particularly appropriate for parents of special needs children. Preparing for the next phase takes time, so it’s best to begin the process, once they celebrate their 17^th birthday.

One of the many decisions that parents need to make before a special needs child becomes a legal adult, is whether or not the child needs a guardian, or if the parents need a power of attorney, as detailed in a helpful article from Effingham (IL) Daily News, “Teaching parents about guardianship of disabled children.”

Once a child is age 18, the parent is no longer the child's legal guardian.

Diagnosis for Early Onset Alzheimer Not an Easy Matter

Published on: May 18, 2018 | By McCulloch & Miller, PLLC

For younger patients, early-onset Alzheimer’s symptoms are usually disregarded or blamed on fatigue, depression or stress.

It often takes a very long time before a young person having problems with memory loss or confusion is diagnosed with Alzheimer’s disease. The Concord Monitor reports, in “Stolen Memories: Problems with diagnosis of younger-onset Alzheimer’s, the delay in diagnosis can lead to problems with work and health insurance coverage.

One-third of the people with younger-onset Alzheimer’s, who responded to a 2006 survey by the Alzheimer’s Association said it took them somewhere between one to six years to receive an accurate diagnosis of Alzheimer’s. Subsequent studies by the Alzheimer’s Association have estimated that as many as 50% of people of all ages with the disease never receive a diagnosis.

Did the New Tax Law Change Roth IRA Contribution Limits for 2018?

Published on: May 17, 2018 | By McCulloch & Miller, PLLC

If you are 50 or older, you can put $6,500 into your Roth IRA: that includes a “catch up” contribution of $1,000. Typical Roth IRA contributions are still limited to $5,500 a year. There are income limits, which you’ll need to be careful about.

One good thing about the new tax law: it raised income limits to qualify for the maximum contribution to a Roth IRA. However, the maximum contribution to a Roth IRA in 2018 is the same as 2017.

Kiplinger’s recent article on this topic asks “How Much Can You Contribute to a Roth IRA for 2018?” In its answer, the article explains that the maximum amount you can contribute to a Roth IRA for 2018 is $5,500, if you're younger than 50. Those age 50 and older can add an extra $1,000 per year in "catch-up" contributions. That is $6,500, which is the maximum contribution amount and the same as 2017.

Why Your Estate Plan Should Include Life Insurance

Published on: May 15, 2018 | By McCulloch & Miller, PLLC

We insure our homes, our cars and even our ability to work. We also buy life insurance, which could be the most important insurance policy you own and not just for when you have passed away.

People typically think of life insurance as a means of paying final expenses, such as funeral costs and leaving some money to family members. However, life insurance is more than a policy your heirs cash in when you pass. It can also work as a financial tool while you are living.

Benzinga’s recent article, “Life Insurance Costs and Payouts at Different Ages,” explains that a life insurance policy is a contract you have with an insurance company. You pay them a premium, and they will give a lump-sum payment to your beneficiaries when you die.

Are You Sure You’re Ready for Retirement?

Published on: May 14, 2018 | By McCulloch & Miller, PLLC

Use this checklist to be certain that you and your finances are properly prepared for retirement.

According to The Center for Retirement Research at Boston College, 20% of Americans are wrong about when they’ll be able to retire. That also means that 80% have it right—which group do you belong to? To make sure you are in the right group, take a look at this checklist from The Street, “8 Essential Steps to Achieve Retirement Success.”

Determine and Test Your Retirement Budget. Do a dry run of your future retirement lifestyle for six months before your intended retirement date. This will help you get a better understanding of how you can follow your retirement budget.