Houston Estate Planning and Elder Law Attorney Blog

A Rose is a Rose–But One Power of Attorney is not The Same as Another

Published on: September 7, 2016 | By McCulloch & Miller, PLLC

It's best to know the difference between different types of Powers of Attorney before you need one, or more, of these important documents.

It may be more fun to chat about exotic vacation getaways, but you will be better prepared for eventual situations if you have a basic understanding of the different types of estate planning documents. According to NJ 101.5, in “Understanding power of attorney documents,” this will also help make sure that your own wishes are carried out if you are not able to speak for yourself.

A power of attorney (POA) is a legal document that’s used to give a trusted friend or family member (known as the attorney-in-fact or agent) the authority to act on your behalf on financial or legal matters. You can specify the scope of powers, which can be very broad or limited.

Make Sure Your Divorce Degree Aligns with Your Estate Plan and Vice Versa

Published on: September 6, 2016 | By McCulloch & Miller, PLLC

Forget to make these changes and your heirs may never forgive you. Forget to align these documents, and your estate planning attorney will never forget you.

Once the process of legally ending your marriage begins, you will need to make sure that your own interests are protected and that includes updating your estate plan to reflect this big life change. While some things may remain the same, like leaving your children certain assets, be assured that pretty much everything else will change, according to Forbes’ article, “The First Thing You Must Do When Your Divorce Is Final.”

Once your divorce is final, that is, the divorce decree has been approved by a judge, and a judgment rendered, contact your estate attorney and begin to review and revise the following legal and estate planning documents:

It Takes More than a Nest to Protect Your Retirement

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

Having an emergency fund in place will help you deal with the unexpected. Surprising survey results point to this as a very weak link in many Americans’ financial plans.

Seniors who have finally reached retirement age after decades of work and smart planning may think they are all set once their nest egg is funded. But that nest egg needs to be protected by an emergency fund—something which most Americans seem to have forgotten during their retirement planning.

Fox Business’ recent article, “What Nest Egg? Two-Thirds of Americans Can't Cover $1,000 Emergency,” talks about the importance of maintaining an emergency fund so you don’t take withdrawals from your retirement accounts.

Not Having a Will is Risky Business

Published on: September 1, 2016 | By McCulloch & Miller, PLLC

You know you need life insurance to protect your loved ones. But do you know that having a will is equally important to protect against risks?

Without a will, your family faces a number of potential financial disasters. If you think you don’t need a will because you aren’t wealthy or only own one home, you may be surprised to learn how not having a will leaves your loved ones open to a number of serious and costly problems.

Nerd Wallet’s recent article, “5 Hidden Dangers of Not Having a Will,” lists some of the most challenging issues, reminding you why it’s so important to have an up-to-date, signed will.

Trusts: Not Always the Best Option

Published on: August 31, 2016 | By McCulloch & Miller, PLLC

Trusts are not right for everyone, so they need to be fully explored before being created.

If someone says you need a trust as part of your estate plan, you should speak with an experienced estate planning attorney before moving forward. A recent post from NJ 101.5, “The disadvantages to trusts,” notes that there are situations when a trust is not the right planning tool.

Trusts can save on estate taxes but are typically subject to higher income tax rates than those of an individual taxpayer once the “grantor” (i.e., trustmaker) dies. Trusts have to pay income taxes on the income they generate by the assets they hold. Such irrevocable trusts hit the top bracket at a very low income threshold: $12,400 of taxable income in 2016. The top income tax bracket for an individual doesn’t happen until his or her income exceeds $415,050. Also, the additional 3.8% net investment income tax applies at low thresholds.

Father’s Wish to Disinherit Daughter Upheld by Court

Published on: August 30, 2016 | By McCulloch & Miller, PLLC

A woman’s suit to contest her father’s decision to give his estate to a not-for-profit failed, as his will was found to be valid. The family’s split over religion was never resolved, and there are no winners here.

A panel of three judges upheld a previous ruling that Stacy Wolin was legally disinherited by her father, according to an article in The Algemeiner, entitled “New Jersey Woman Fails to Contest Father’s Will Over Alleged Bias Against Jewish Spouse.” The estate of Kenneth Jameson will instead go to the Hospitaller Order of St. John of God Community Services, which serves people with developmental disabilities. As unpleasant as her father’s wishes were, the will was found to be valid.

Wolin told the court that because her parents disowned her when she refused to stop dating a Jewish man, who was the man she eventually married and with whom she had three children, she was forced to pay for her college education by herself. She also had to spend her semester breaks at her boyfriend’s house because her father didn’t want her around.

What You Don’t Know About Estate Planning Could Hurt Your Family

Published on: August 29, 2016 | By McCulloch & Miller, PLLC

Think of an estate plan as a love letter to your family after you have passed.

You’d be surprised at how many people you know don’t have a will or an estate plan in place. They may be among the many who have an unspoken belief that if they don’t have a will, they won’t die. That would be terrific—if it were true. Or, they think that only people who are wealthy or have complex tax issues require estate planning.

The Sabetha (KS) Herald’s recent article, “Understanding the estate planning process,” says that both of these ideas are wrong because your level of wealth and the ultimate tax consequences of your estate take a back seat to the planning and care of your family and other heirs.

Mid-Summer is Time for a Midyear Financial Checkup

Published on: August 19, 2016 | By McCulloch & Miller, PLLC

While the number of people making New Year’s financial resolutions are on the rise, we would do well to make a midyear financial check a regular part of the summer season.

The good news is more than 30% of Americans did give some thought to making financial resolutions this past New Year, according to a survey from Fidelity Investments. The goals were nothing out of the ordinary. They were simply the things we should all be doing with our money: saving more, spending less and getting rid of debt.

If you were one of these go-getter and goal-setters, this summer is a perfect time to look at your progress, says US News in “Keep Your Money Goals on Track with a Midyear Financial Checkup.”

Cross-border Financial Planning Helps Expats Move Home and Retirees Live Their Dreams

Published on: August 17, 2016 | By McCulloch & Miller, PLLC

Moving a lifetime of possessions in or out of the country is one thing, but moving money from country to country without losing it takes a new kind of financial planner.

Whether you are retiring to a small cottage in the Cotswolds or coming home after a career that kept you in Asia’s booming manufacturing markets, there is a new type of professional who can help with one of the most potentially costly parts of the move: moving money across borders.

Nasdaq’s recent article, “Money Crossing Borders Requires Special Planning,” says the good news is that a new kind of financial planning is emerging to help people navigate the potential pitfalls of such moves.

Second Marriage and Blended Families Add Complexity to Estate Planning

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

The old adage is right—a second marriage is indeed the triumph of hope over experience. Add estate planning to keep that hope—and peace in the family—intact.

It’s a delicate balance to hold: preserving assets for children from a first marriage and—at the same time—ensuring that your new spouse will have the assets needed to maintain his or her life in comfort. Balancing the two often requires coming to terms with realistic expectations for all.

CNBC’s article, “Getting remarried? Protect your assets and your interests,” recommends looking ahead and addressing questions about your goals, how your existing family and new spouse will relate to one another when you're gone and who will be in charge of the money. The big issue that heirs of a remarrying couple need to worry about more than federal estate tax is the new spouse.