Houston Estate Planning and Elder Law Attorney Blog

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.

Can a Revocable Land Trust Shield Assets from Medicaid?

Published on: May 11, 2018 | By McCulloch & Miller, PLLC

Control of an asset is a key element, when Medicaid considers an individual’s eligibility.

A recent article from nj.com, “What revocable land trusts mean to Medicaid eligibility,” starts with what sounds almost like a warning: it’s not easy to protect or hide assets from Medicaid. A revocable land trust won't help to protect an asset from Medicaid's spend down requirements, because a trust that’s revocable can be revoked or terminated at any time by the grantor.

A land trust is a private agreement with the trustee agreeing to hold title to property for the benefit of the beneficiary or beneficiaries. The creator of the trust is called the settlor or trustor. This person is usually the titleholder to the property, before it’s transferred into the trust.

50 or Older? Here are a Few Retirement Questions for You

Published on: May 8, 2018 | By McCulloch & Miller, PLLC

You don’t need to create a spreadsheet or write a book-length plan, but anyone in their 50s, who wants to have a successful retirement, is advised to start getting their thoughts organized.

Research shows that people who have more specific ideas of how they want to spend this part of their life, end up being more satisfied that those who just wing it. We think that’s because those who create a plan have also devoted some time and energy to considering what retirement means to them, what issues they may face and what is meaningful to them.

Forbes recent article, “5 Key Retirement Questions You Need To Answer When You're 50 Or Older,” boils it all down to a few key ideas.

Massive Sweep of Elder Identity Fraudsters but Millions More at Risk

Published on: May 7, 2018 | By McCulloch & Miller, PLLC

The use of technology—including cell phones, emails and social media—has dramatically increased the number of potential victims.

There’s good news and bad news on the elder fraud front. Law enforcement recently conducted the largest sweep of elder fraud cases specifically targeting the elderly, according the article “Law Enforcement Conducts Largest Coordinated Elder Identity Fraud Sweep in History,” appearing in Security Intelligence. The U.S. Department of Justice announced that more than 250 defendants have been charged in the sweep, 200 of whom have been charged criminally.

Some of the identity fraud campaigns included a common grandparent scam where seniors were contacted and informed that their grandchildren had been arrested and needed bail money. Other scams told seniors they’d won the lottery but needed to pay a large fee to get the winnings or that they owed back taxes to the IRS.

Business-Owning Baby Boomers Need to Start Succession Planning

Published on: May 4, 2018 | By McCulloch & Miller, PLLC

With an estimated 10,000 Boomers retiring every day, members of this generation who own businesses should already have their succession plans in place.

Exit or succession planning is a lot more complicated than most business recognize. It takes a long time if it is to be done properly. A recent article from Moultrie News, “Securing retirement through engaging in business exit planning,” says that not all business-owning baby boomers are ready.

Many soon-to-be retirees are closely-held business owners who have created and operated very successful businesses for years, but they’re now considering what their next move will be.

Zsa Zsa Gabor’s Estate Auction a Festival of Hollywood Bling, Old School Style

Published on: April 27, 2018 | By McCulloch & Miller, PLLC

Famed for a long string of husbands, Zsa Zsa’s estate auction will include the glamorous four-poster bed that she shared with three of her nine husbands. Yes, nine!

If you’re in the market for glitz, check out the estate sale of the late Zsa Zsa Gabor, actress and socialite as described by The New York Post in “Zsa Gabor estate auction includes bling, four-poster bed.” Going on the auction block are a huge collection of luxury items, including everything from rhinestone-beaded gowns and costume jewelry to gold-plated candelabras and tableware. Known for her many husbands and a high social profile, Zsa Zsa died at age 99 in 2016.

The auction will include an English saddle that was given to Gabor by her friend Ronald Reagan and the dining table at which she entertained Frank Sinatra, Sammy Davis Jr. and Tony Curtis. Heritage Auctions will auction off everything at the mansion itself on April 14, but they’ll also take online bids.

What’s on the Mind of Gen-Xers: Not Retirement Planning

Published on: April 26, 2018 | By McCulloch & Miller, PLLC

A survey found that Gen Xers are less concerned about retirement planning than they are about other financial challenges.

Don’t forget that group that’s between the headline grabbing millennials and boomers: Generation Xers, Americans between ages 36-55. A survey from the IRA (Insured Retirement Institute) appears to have uncovered a significant knowledge gap in this group when it comes to personal finance.

Think Advisor’s recent article, “These 3 Threats Scare Gen Xers More Than Basic Retirement Costs: IRI” explains that the survey aimed to find out how Gen Xers are handling retirement planning. The analysts who summarized Gen Xers’ approach to retirement planning said “They’re (mostly) doing it wrong.”

Under New Tax Law, Roth IRAs are More Attractive

Published on: April 25, 2018 | By McCulloch & Miller, PLLC

The new Tax Cuts and Jobs Act have made the Roth more attractive as retirement savings vehicles.

Here are the two biggest tax advantages from Roth IRAs: withdrawals are tax free, and you don’t have to worry about required minimum distributions. According to MarketWatch’s article, “How the new tax law creates a ‘perfect storm’ for Roth IRA conversions,” today’s federal income tax rates might be the lowest you’ll see for the rest of your life.

Tax-Free Withdrawals. Unlike traditional IRA withdrawals, qualified Roth IRA withdrawals are federal-income-tax-free and most often state-income-tax-free. A qualified withdrawal is one taken after you, as the Roth account owner, have met both of the following requirements: (i) you’ve had at least one Roth IRA open for more than five years; and (ii) you’ve reached age 59½ or become disabled or dead. To satisfy the five-year requirement, the clock starts on the first day of the tax year for which you make your initial contribution to your first Roth account. That initial contribution can be a regular annual contribution or a conversion contribution.

What Goes into a Good Will?

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

If you are an adult, you need a will. If you are a parent, you need a will that names guardians for your minor children. Anyone who is an adult, should have a will.

The core of an estate plan is a document known as a will, the legal document that tells your heirs and the court how you want your assets handled upon your death. If you don’t have a will and you die, decisions about the distribution of your possessions and property are made by a judge, who likely doesn’t know who you are, or what you might have wanted to happen to your assets. If you have minor children and have not had a will created, then a judge will also be the one making the decisions about your children. That’s probably not what you or your family want to have happen.

Health Day’s recent article, “Wills & Living Wills,” provides some general rules for writing a will: