Houston Estate Planning and Elder Law Attorney Blog

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.

Four Decisions at the Heart of Retirement Planning

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

Are you surprised that such a complex topic can be divided into just four sections? Once these difficult tasks are accomplished, you’ll have some much needed perspective that will help the rest of the process along.

According to a recent article in Forbes, “How Much Do You Need To Retire: 4 Things For Your Checklist,” these four decisions will help you clarify many questions about retirement and help more your planning forward:

Decide on your retirement age. This is easiest for many people, but the age you choose should align with your retirement savings and Social Security benefits. At a minimum, use Social Security payments as a baseline for your retirement income.

Before You File Your 2016 Taxes, Review These Tax Breaks for the Disabled

Published on: March 13, 2017 | By McCulloch & Miller, PLLC

There is some kindness in the tax code, especially when it comes to the disabled and their care givers. There are a few tax breaks that are intended to alleviate some of the financial burden.

Even when a disabled person is able to work, they or their caregivers must incur many additional costs, from transportation needs to medicines and special supplies for care. A study by the Centers for Disease Control and Prevention reported that one out of every five Americans lives with a disability. If this includes you or someone you care for, you’ll want to know about some tax tips that are designed to help. A recent article in Yahoo Finance, “8 Tax Tips for People With Disabilities (and Their Caregivers),” offers some useful details.

ABLE accounts. These accounts are newer savings vehicles for those who become blind or disabled before the age of 26. The accounts are like 529 college savings accounts—the account grows tax-free and can be spent on eligible expenses with no taxes. Contributions to these accounts don’t qualify for a federal tax credit or deduction. However, Iowa, Michigan, and Nebraska offer state tax benefits for contributing.

Savvy Tips for Dealing with an Inheritance

Published on: February 9, 2017 | By McCulloch & Miller, PLLC

Inheritances by their very nature, create many mixed emotions. While you are grateful for the inheritance, you are grieving, which is a painful experience that impacts decision-making skills.

Perhaps the most important thing to know when you are grieving the loss of a loved one and expect to receive an inheritance, is not to make any big decisions. While an inheritance may change your life in a financially good way, as reported in The Reading (PA) Eagle Business Weekly’s recent article, “What to do and what not to do with your inheritance,” you are in a state of emotional crisis. Financial planning and big financial decisions will need to be made, but nothing needs to be done immediately, except for settling the business of the estate, if you are the executor. Here are some dos and don’ts to keep in mind:

What not to do with an inheritance

Alzheimer’s or Dementia Screening Now Covered by Medicare

Published on: February 8, 2017 | By McCulloch & Miller, PLLC

You might think that any doctor seeing patients over a certain age would automatically screen for Alzheimer’s or other dementia-related diseases, but until now that has not been the case.

Starting in January, Medicare will now begin reimbursing doctors for screening and providing information about care planning for patients with Alzheimer’s and other cognitive impairment diseases. What seems like common sense public health policy, took many years of advocacy from patient groups.

Santa Cruz Sentinel’s recent article, “Diagnosing Alzheimer’s: Medicare now pays doctors to stop and assess memory loss,” reports that more than 5 million Americans are living with Alzheimer’s, and as many as 16 million will have the disease in 2050. The cost of caring for those with the disease and other types of dementia is also skyrocketing. In the U.S., it’s estimated to total $236 billion in 2016 and is anticipated to increase to $1.1 trillion by 2050.

RMDs for Retirement Accounts: What You Need to Know

Published on: December 16, 2016 | By McCulloch & Miller, PLLC

New Year’s Eve is the deadline for taking RMDs if you are older than 70 ½. Haven’t started yet? Get on this right away to get it done in time. Otherwise, be prepared to pay a penalty.

You still have a little time to beat the last minute rush on taking your Required Minimum Distributions (RMDs) from traditional IRAs and 401(k)s, according to Kiplinger’s “FAQs About Required Minimum Distributions for Retirement Accounts.” However, you had better hurry if you are older than 70 ½. You only have until December 31^st and any delays could be expensive. Remember that you aren’t the only one making this transaction at this time of year, and you’re hardly alone in waiting until the last minute.

Here is some additional information to help you meet your deadline for IRA withdrawals and some special rules for 401(k)s.

Senior Weddings Call for a Different Kind of Planning

Published on: December 14, 2016 | By McCulloch & Miller, PLLC

If you’re walking down the aisle again, there are a number of smart steps to take before you say “I do” another time.

Just as your life was probably simpler the first time you married, your subsequent marriage, especially if it occurs late in life, can become problematic, if good planning doesn’t happen in advance. If you don’t know your legal rights or your responsibilities, reports New Hampshire Magazine in “Navigating Late-Life Remarriage,” you, your children and your new spouse may be in for some unpleasant surprises.

While death and the likelihood that one spouse will outlive the other is inevitable, another important fact is that the divorce rate among those who remarry later in life years is 60%. This is much higher than the rate of any other segment of the population. Some experts think that number may go even higher.

A Checklist for Post-Funeral Tasks

Published on: December 12, 2016 | By McCulloch & Miller, PLLC

There are a number of tasks that need to be done after a loved one passes. A Houston estate planning attorney can help make these tasks easier.

Most people don’t know that there is a time limit on certain tasks that need occur after someone passes away. According to WXYZ Detroit’s article, “Tips you need to know to take a loved one's estate through probate,” you’ll need to contact the Probate Court within 42 days of the death to find out whether you’ll need to have either a formal or informal administration of the estate. That’s just for starters. Here are other things that need to be done after the funeral:

Don’t rush to have an obituary notice published. There are scam artists who use the obituaries as an information source for going after estate assets, planning burglaries and engaging in identity theft.

From Inside the Firm: Tom’s “Do’s and Don’ts” for Succession Planning

Published on: December 2, 2016 | By McCulloch & Miller, PLLC

Realize that your Exit Strategy is not business as usual. Get knowledgeable guidance e.g. from financial/legal advisors (team approach). Start now.

Be realistic about objectives: Is it first and goal to go or is it a goal line defense?