Houston Estate Planning and Elder Law Attorney Blog

Make That Retirement Nest Egg Stretch As Far as Possible

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

Long gone are the days of pensions, when employers took care of all Houston retirement income. On the flip side, Houstonians are living longer and healthier lives.

If X equals a longer lifetime and Y equals smaller retirement funds, how do you solve for Z? Making retirement money last longer to match a longer lifespan is a very real problem for Houstonians. These three suggestions from The Motley Fool's "3 Easy Moves to Make Your Money Last Your Lifetime" cover some of the big-picture topics: expenses, investment tools and earned income.

Decreasing expenses and cutting unnecessary costs is the first step in making your nest egg last longer. More than likely, your biggest cost is housing. This is where paying off your mortgage long before retirement—or downsizing into a smaller home either before retirement or just as you retire—makes sense. Unfortunately, more and more Houston seniors are still carrying mortgages during retirement. Consider throwing all unexpected windfalls against the mortgage, or make one extra payment every year—if cash flow allows.

Does Your Houston Home Have a Mortgage? Estate Planning Considerations

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

The moment you close on your home, you should make sure that your heirs will not be stuck with a no-win situation that leads to a home being abandoned, according to "What Happens When a Homeowner Dies before the Mortgage Is Paid?" in The Wall Street Journal. It may not be the first thing on your mind when you take possession of the house, but it should be dealt with as soon as possible.

The mortgage is secured by the house. Nonpayment can't damage an heir's credit score unless he or she is a co-signer on the mortgage. Nonetheless, they should keep paying on the mortgage if possible because missed payments could incur penalties and lead to foreclosure.

Lenders who are notified of the borrower's death right away are usually understanding about resolving estate issues to avoid foreclosure.

Planning Tips for Houston’s Single Parents

Published on: April 28, 2016 | By McCulloch & Miller, PLLC

Frankly, there is less room for error when a single parent is managing all of the responsibilities of raising a family. Five key planning guidelines are the focus of the Parent Herald's article "5 Financial Planning Tips For Single Parents For Your Family's Protection."

Here are the top five most important tips:

Create a safety net. Most important is to have sufficient emergency funds that can be your financial safety net. Single parents should save at least six months' worth of expenses in an account that's untouched until an emergency occurs.

Houston Estate Planning? Consider Special Needs Child

Published on: April 27, 2016 | By McCulloch & Miller, PLLC

Learning that your family will include a special needs child dramatically changes the narrative for families and most don't know what to expect, from providing care to financial planning. The New York Daily News explores the financial planning that needs to take place in "How to prepare a financial plan for families with special needs children."

Experts estimate that raising a child to age 18 costs roughly $250,000 and those parents of children with disabilities and special needs will have costs that could be as much as 10 times more. With these types of financial challenges, here are some key areas to focus on to protect and grow your money.

Assemble a team of experts. That team should include an elder law attorney, doctor, accountant, and government benefits specialist to help you understand Social Security, Medicaid, and other state and federal government programs;

How to Talk To Your Houston Parent About Their Will

Published on: April 25, 2016 | By McCulloch & Miller, PLLC

The natural tendency, according to "How to handle a parent not having a will" in New Jersey 101.5, is to postpone the preparation of a will after a husband or wife has passed. Grieving a loved partner is difficult and painful. The last thing they may want to do is get involved with their own will.

Also, if Dad has recently passed away, Mom may be hearing a different message in between the lines: "You're gonna die soon, so please leave me an appropriate share." This makes matters even harder. And talk of drafting a will may bring back painful emotions linked to the father's death. These feelings are to be expected.

But instead of the children pressuring Mom, they should point out some of the benefits a will can provide, such as how a will allows her to specify how her assets will be transferred at her death. This can include making bequests of family heirlooms to specific people or include charitable contributions. If there's no will, Mom won't have any control. Her assets will pass according to the intestate laws of the state.

Creating an Eldercare Plan is Important to Comprehensive Estate Plan

Published on: April 22, 2016 | By McCulloch & Miller, PLLC

There is an expression among elder law attorneys called being "elderproofed," according to the Huffington Post in "Writing an Eldercare Plan." This takes planning to the next level, and includes things like how the person wises to be cared for, medical treatment preferences, whether they want to be cared for at home or in a facility, and more. These cover the day-to-day decisions to ensure that desires are followed once a person is unable to make those decisions known.

It's very important for seniors and their loved ones to discuss a care plan for the future before disease or dementia come into play, or a crisis causes eldercare services to become urgently needed. Get the plan drafted while the senior is still fully cognizant and rational. They can be signed when other end-of-life documents are put in place.

In truth, everyone wins with early discussions. When the patient is involved in the decisions for his or her potential care, the family has a better understanding of their preferences and are prepared for tough questions.

What To Do If Additional Assets Discovered After Estate Taxes Have Been Filed

Published on: April 21, 2016 | By McCulloch & Miller, PLLC

Here's an ethical dilemma. You learn that your late mother had a safe with $100,000 cash in it after the estate has been finalized. Do you pocket the cash and tell no one, or add it to her assets? The temptation is obvious, but the right and legal thing to do is correct the error.

New Jersey 101.5 says in its recent article, "Why it's important for executors to report all estate assets," that the executor of an estate must prepare and file the necessary returns. In doing this, he or she has to collect, value and report all of the assets of the estate.

If a failure to include the cash in the inventory of the estate assets keeps the estate below the reporting threshold and no return was filed, the unpaid tax on the cash will accrue interest. Plus, the estate and executor may be subject to penalties for nonpayment, as well as facing civil and criminal penalties if this failure to file is deemed fraudulent.

New York Proposes Law to Help Preserve Elderly Victim’s Testimony

Published on: April 20, 2016 | By McCulloch & Miller, PLLC

The New York State Senate has passed a bill that will make it possible for testimony given by elderly witness to be preserved and used in criminal cases against their abusers, even if the elderly person has passed away or become incapacitated.

WHEC reported in its news article, "Senate passes bill to better protect senior citizens from abuse," that the legislation would allow elderly witnesses who are age 75 or older to be examined conditionally to preserve their testimony for future use.

"We have a responsibility to protect our senior citizens," Gallivan said. "Elder abuse, whether physical, psychological or financial, is on the rise as our senior population continues to grow. This legislation helps ensure those who abuse and exploit the elderly are held accountable and do not go unpunished."

Protect Your Houston Business with Estate Planning

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

It's amazing how quickly a business can get picked to pieces after the death of an owner. With the use of good estate planning, according to The Huffington Post article, "5 Things Estate Planning Can Do for You and Your Business," you can protect your business and your legacy. Otherwise, your business is at the mercy of government taxes, co-owners and even family members who will stake their claims.

Use estate planning to avoid unfortunate events and to prevent seizure and depreciation of the business assets. This can decrease the stress and hassles that occur immediately after you die. Here are some good estate planning ideas to help protect your business.

More options for your business. Solid estate planning gives you the option of buy-sell agreement. If your business has one or more co-owners, this agreement ensures that upon the death of any owner, the interest of the deceased is automatically purchased by the other owner(s). The beneficiaries of the deceased owner, such as the spouse, children, or other family member won't unintentionally become owners. This strategy can alleviate some stress in an already stressful situation, immediately after the death of an owner or part owner of a business.

Estate Planning: Preventative Therapy for Houston Family Members?

Published on: April 15, 2016 | By McCulloch & Miller, PLLC

Something happens when money and possessions are involved, putting even the best of family relationships at risk, according to "Keeping the Peace Between Adult Children in Estate Planning" from The Huffington Post. The best strategy is advance planning and lots of candid discussions.

Although American retirees have been ranked high as some of the most generous in the world in terms of amount of assets passed to family members, a new retirement trend has emerged. About 43% of U.S. retirees now say they continue to provide regular financial support to at least one other person, with 10% saying they were supporting at least one adult child. These changing demands on the resources of some retirees shows that inheritance planning may become a bit more complex in some families. This could mean added stress between aging parents and adult children.

You need to remember that your financial well-being needs to be the priority. Make sure that your estate plan is updated to fully coordinate with your complete financial picture. This should be adjusted when significant life changes happen or if there is a major shift in assets—like when a child needs help. For some families, dividing up assets fairly equally among adult children is not a problem. But when it's not fair for everyone involved, it can be tougher. Varying situations for each child might mean it won't be an even split.