Houston Estate Planning and Elder Law Attorney Blog

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:

Mortality Rates Might Make You Think Twice About Claiming Social Security

Published on: April 20, 2018 | By McCulloch & Miller, PLLC

They say that numbers don’t lie—and you definitely want to know about this data!

Before you decide to retire at age 62 and start taking Social Security benefits, you may want to dig a little deeper into the statistics, especially if you are a man.

“Your life might depend on your decision,” MarketWatch notes in its article, “Why early retirement can be a killer.” This is because there’s a significant increase in mortality among men who retire at 62 and begin receiving Social Security, according to a new study that recently was distributed by the National Bureau of Economic Research.

What Free Services Does Medicare Provide?

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

Ben Franklin said, “An ounce of prevention is worth a pound of cure.” That’s why Medicare provides free screenings and examinations focused on prevention.

Yes, you still have to spend a lot of out-of-pocket money on healthcare, but a recent article in AARP ,“10 Free Services Medicare Provides,” reports that the Affordable Care Act (ACA) expanded access to free preventive care, including a number of screenings and examinations. These are all helpful to maintaining good health.

A “Welcome to Medicare” Preventive Visit. Available only in the first 12 months you’re on Part B, this visit includes a review of your medical history, some screenings and shots, measurements of vital signs, a vision test, a review of potential risk for depression, the opportunity to discuss advance directives, as well as a written plan detailing the screenings, shots, and other preventive services you should have. This visit is covered only once, but it’s a good perk.

Proper Planning for the Distribution of an IRA

Published on: April 10, 2018 | By McCulloch & Miller, PLLC

The rules for IRA distributions can be complicated. Unforeseen circumstances can make things even more complex. Understand the rules, so the money goes where you want it to.

What happens if you designate each of your two adult children as 50/50 beneficiaries of your IRA, and then one of them dies? Will the funds go to your grandchildren?

MarketWatch answered that question in its article, “Who gets your IRA when you die? It’s not so simple.” The answer to what happens to the IRA money is dependent upon what the beneficiary designations say and when one of the children passes away. The beneficiary designations state how it will be distributed. However, that may not be what is written in your will.

Tom Benson Excludes Daughter and Grandchildren from his Will

Published on: April 9, 2018 | By McCulloch & Miller, PLLC

Before he died, the owner of the New Orleans Saints and Pelicans gave millions of dollars of property to his daughter and her children, but they were not included in his last will and testament.

The last will of multi-millionaire Tom Benson, who owned several professional sports teams and other businesses, did not include his daughter and her children, according to an article from KPVI, “Though excluded from his will, Tom Benson’s daughter and grandchildren received much from family patriarch.”

Following Benson’s death, court records indicate that his third wife Gayle became the sole beneficiary of an estate controlling New Orleans’ NFL and NBA franchises, as well as the Dixie Brewing Co. There were other valuable businesses or properties in the estate: three car dealerships, the site of Benson Tower and Champions Square, a $3.6 million Uptown mansion, a racing stable and a parking lot used by fans attending Saints or Pelicans games.