Houston Estate Planning and Elder Law Attorney Blog

You May Miss the Estate Tax, but Your State May Have Its Own Death Taxes

Published on: May 19, 2017 | By McCulloch & Miller, PLLC

Some states are cheaper to die in than others, that is, when it comes to death taxes.

The average American doesn’t have to worry too much about paying a federal estate tax, as the current federal estate tax exemption is a generous $5.49 million for 2017 and twice that if you are married. But that’s not the only death tax you and your heirs may encounter, depending on where you live or, more accurately, where you die.

MarketWatch’s article, “Here are the 20 most expensive places in America to die,” reminds us that about 20 states and DC have their own estate or inheritance taxes, or both. Some have exemption thresholds below the federal amount. Therefore, if you live in one of these states, you may be exempt from the federal estate tax, but still exposed to a significant state death tax bill.

Strong Trust Planning is Important When One Spouse is Not a U.S. Citizen

Published on: May 17, 2017 | By McCulloch & Miller, PLLC

With many tech companies, universities and businesses, North Carolina has become home to many resident aliens who contribute greatly to the state’s growth. Estate planning requires special knowledge of non-citizen tax rules.

More than $1 billion in annual foreign direct investment gives North Carolina’s private sector employment a huge boost, as reported in Trust Advisor’s recent article, “Foreign Spouses Need Strong Trust Planning.” That includes hundreds of thousands of workers, individuals who are not U.S. citizens but who establish residence here.

They’re known as “resident aliens” under U.S. tax law. There are also nonresident, non-U.S. citizens (“nonresident aliens”) who will invest in real and personal property situated in the state. This can include a wide variety of real and personal property, from vacation homes to ownership interests in a holding or operating company.

Daughter Sues Mom, Charging Her with Draining Her Inheritance

Published on: May 15, 2017 | By McCulloch & Miller, PLLC

Legal battles that lasted longer than the marriage, continue to plague the daughter of a real estate investor.

A court action brought by a young woman, whose mother devoted nine years to gaining control of her trust fund, is now trying to free herself from her mother’s financial grip. Her daughter claims that her mother sold as many as seven Gramercy Park co-ops and an apartment building in Brooklyn and pocketed $13 million.

The New York Post reports in “My mom swiped more than $13 million from my inheritance,” that the daughter, Elizabeth Marcus, has tried for years to get a hold on a trust fund from her mom, Geraldine Lettieri. The trust was established for Marcus by her dad, real-estate investor Alan J. Marcus, before his death in 1994. The fight over his estate has been going on in Bronx Surrogate’s Court, where Lettieri first won control of the trust in 2003. Elizabeth says that Lettieri used the fund like a piggy bank, buying fancy cars and a mansion in the Hamptons.

Welfare Check on Senior Leads to Lawsuit against NYPD Officer

Published on: April 28, 2017 | By McCulloch & Miller, PLLC

A federal judge has ruled that a police officer’s uninvited entry into a house to check on the well-being of an adult with dementia, is shielded by qualified immunity. The response to a possible crisis was correct.

Given the number of elder abuse cases, it is encouraging that New York Judge Frank Geraci’s decision, as reported in the New York Law Journal’s article, “Officer's Welfare-Check on Elderly Man Is Shielded by Immunity, Court Says,” supported the actions of Lt. Joseph Buccilli, a police officer with the Orchard Park, NY Police Department.

The judge said the police officer was protected by his good faith actions in responding to an emergency. He had qualified immunity from a suit filed by the owners of the home he entered, in alleged violation of residents' Fourth Amendment rights to privacy. The judge went on to say that even if Buccilli's beliefs that his actions were justified in entering the home were based on wrong assumptions, the officer’s actions weren’t so "plainly incompetent" as would qualify as a violation of the resident's Fourth Amendment rights.

Minus Michael, the Jackson Estate is All Business

Published on: April 26, 2017 | By McCulloch & Miller, PLLC

Without the spending habits of Michael Jackson and the involvement of members of his inner circle, the Jackson estate has been transformed into an efficient multi-million dollar empire.

As it stands now, the only factors that might keep the Michael Jackson money machine from moon-walking into eternity are his heirs.

The estate recently severed ties to Jackson’s publicist and former management team, after a multi-year courtroom battle. The losers said they stood by the star at a really low point in his life. In return, they claimed, he promised them 15% of his business. Trust Advisor’s recent article, “Michael Jackson Estate Reveals Mr. Hyde Side: Dead Star Now Fighting His Friends,” explained that since the estate wanted all of the cash, whatever Michael really wanted is of little consequence without legal documentation. Since a judge has dismissed the claim, the estate can continue consolidating its hold over every aspect of the Michael Jackson brand. All the old relationships that he once had with partners and advisors are gone.

Understanding the Basics about Medicare

Published on: April 25, 2017 | By McCulloch & Miller, PLLC

Even if you are still working, once you turn 65, you have to navigate your way through an entirely new and complex health care system. While there’s no HR department, there are resources.

It starts the day you turn 65, and it’s a bit of a challenge. Seniors need to get up to speed fast on the many requirements of Medicare. A recent post of Kiplinger’s, “FAQs About Medicare,” warns that mistakes can be extremely costly and difficult to fix. You’ll want to study up on this in advance.

For starters, if you signed up for Social Security before age 65, you’ll automatically be enrolled in Medicare parts A and B and receive your card three months before your 65th birthday. Part A covers hospitalization and is generally premium-free. Part B covers outpatient care, such as doctors’ visits, x-rays and tests, and costs $134 a month for people who enroll in 2017 (or more for high earners).

Can an Estate Plan Protect an Adult Child with an Addiction or Mental Illness?

Published on: April 5, 2017 | By McCulloch & Miller, PLLC

When all of your time is spent battling the challenges of mental illness or addiction, it’s hard to imagine what the future will bring. However, that’s exactly why estate planning is so important.

It’s not an easy issue to discuss with an estate planning attorney for the first time. However, if your children, minors or adults, suffer from mental illnesses or addiction to drugs, alcohol, gambling or any other form of addiction, the attorney will need to know so they can advise you properly. As described in Trust Advisor’s helpful article, “Hope For The Best, But Build Trusts For The Future Of Children With Special Challenges,” there are certain planning techniques that could be used in these situations.

Before diving in, estate planning requires a parent to acknowledge that an addicted son or daughter may never recover. With this in mind, estate planning must be done so that the child never has easy access to the funds. In this instance, a trust with special-purpose language may be a wise option.

Wrong Answers to Two Misconceptions about Estate Planning

Published on: April 3, 2017 | By McCulloch & Miller, PLLC

The moment you become a parent, you need a will. The same is true once you acquire any kind of asset that you want to give to someone after you die. It’s really that simple.

The reasons why so many people don’t think they need a will fall into a number of different categories. However, the two biggest ones are described in an article appearing in the Pauls Valley Daily Democrat titled “More on estate planning myths.” Chances are good you’ve heard them before, but you may not have heard why they are plain old wrong. Here’s why:

“I’m young, so I don’t need a will.” This is not true. One of the most important parts of a will for a young couple, is a provision that designates a guardian—the person(s) who will care for their young children in the event of their mutual death. This is rare, although it does happen. To make matters worse, what if there’s a family fight for custody of your children? Make this selection so the court isn’t forced to select a guardian for your minor children if the event arises. A will can give you peace of mind concerning the care of your children.

Millennials, It’s Your Time to Start Planning for the Future

Published on: March 31, 2017 | By McCulloch & Miller, PLLC

Now that many members of the millennial generation are parents, it’s time for them to protect their families with estate plans, including naming guardians for their minor children. Yes, that generation is growing up!

The numbers are pretty extreme. A recent study by caring.com reveals that 88% of 18–36 year-old Americans don’t have either a will or a trust, as reported in Financial Buzz in a recent article, “Millennials: Start thinking about estate planning now!”

This compares to the 81% of Americans aged 72 and older who do have a will or at least a trust. If it seems like younger adults don’t think they need to deal with estate planning, that’s true. But they do, especially if they have minor children.

The Biggest Purchase is Not Your House

Published on: March 17, 2017 | By McCulloch & Miller, PLLC

If you think of retirement as a one-time purchase, it is the biggest thing you’ll ever buy. Trying to pay for retirement without the funding, is asking for the impossible.

Compared to buying a new car or a house, paying for retirement is the biggest purchase of a lifetime, according to a study from Merrill Lynch and Age Wave reported in Credit Union Times, “Retirement Is ‘Life’s Most Expensive Purchase.” Conversations over the course of four years with 50,000 people about their plans for retirement revealed some very problematic trends.

The average cost of retirement is over $700,000. That’s about 2.5 times that of the average home. The average cost of a home is $278,300.