Houston Estate Planning and Elder Law Attorney Blog

Need to Track Down a Missing Pension?

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

The defined-benefit pension is a rare bird today. But if you are lucky enough to have one, don't assume that your distribution will go smoothly. Here's how to protect yourself.

For millennials, the idea of a pension plan that pays benefits from the time you retire to the day you die is an unheard of concept. Fewer and fewer American companies offer this benefit, so if you are among those who have a defined-benefit pension, congratulations. But don't assume that the check is in the mail. A recent investigation by the Department of Labor into some of these large plans shows that more than $500 million is owed to retirees.

Kiplinger's article, "Missing Pensions Costly to Retirees," reports that since last summer the Labor Department has investigated more than four dozen large pension plans and has found staggering results: some of them are not doing a very good job of monitoring retired participants and paying benefits when they're owed. Some plans don't even have the names or ages of many of their participants.

When Life Throws You a Curve Ball, Be Prepared to Respond

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

We never know what's around the corner. Big changes come in all different types. Best strategy: be prepared and deal with whatever comes.

Of those Americans who actually have a will and an estate plan in place, there's still a tendency to let years go by before they update their wills and finances. Any good Houston estate attorney will tell you that a will needs to be updated every three or four years to take advantages of any changes in the law and to address any life changes that occur.

The Middletown Transcript warns in "Game-changing life transitions that need attention" that sudden transitions need to be addressed immediately. However, many times these events will have more complex consequences impacting other parts of your life. Don't stick your head in the sand when such an issue comes up. Deal with it in the context of your overall life.

Selecting an Executor Who is Not a Family Member or Friend

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

If you don't believe any friends or family members can serve as your executor, what are your options?

A question is raised by a well-to-do husband who is concerned that his wife is not prepared to handle a significant estate if he should predecease her. The couple has no children, and he is concerned about what will happen. In MarketWatch's "My wife and I don't trust anyone to be executor of our will," several different ways to prepare for this situation are examined.

One important note to consider: while mulling over the executor issue, do not table your estate planning. With both spouses still living, the planning should start right away.

How to Make Your Houston Family Business the Exception That Survives

Published on: June 13, 2016 | By McCulloch & Miller, PLLC

Whether on the evening news or a serial drama, we love to watch the inner workings of family businesses—in large part because of the drama and the high likelihood of failure.

The narrative of family dynasties is intriguing. According to the Yakima Herald in "Passing the baton: 6 challenges for family business succession," that is because successfully transitioning from one generation to the next is extraordinarily challenging and statistically unlikely. The low levels of success are matched by high expectations of business owners who believe that somehow, someway, their family will continue to control the businesses. Their viewpoint is highly optimistic and—most often—wrong.

Whether it's a national chain of supermarkets or a mom and pop corner grocery, owners will face several obstacles when seeking to ensure that their business legacy continues with and through their children. Here are some common challenges to consider.

Here’s One Way to Avoid the 401(k) Penalty

Published on: June 9, 2016 | By McCulloch & Miller, PLLC

The double nickel year has potential for allowing you to tap your 401(k) without an early withdrawal penalty, but you have to know exactly how it works to avoid problems.

There's one exception to the rule that you must be at least 59 ½ to tap your 401(k) without incurring a 10% early-withdrawal penalty, but you have to tread carefully. If it is the year you turn 55 or older and you leave your job, there's no penalty. You will still owe tax on the withdrawal—a $10,000 payout at a 25% tax rate will still cost you $2,500. There's no free lunch, even here. But, the good news is you don't get hit with a $1,000 early withdrawal penalty.

It doesn't matter how you separate from service. In fact, retiring, being laid-off or even termination will spare you the penalty. Provided you're 55 by the end of the year you leave the job, the rule applies, says the Kiplinger's article, "When You Can Tap a 401(k) Early With No Penalty."

Guardianship Abuse Still Exists, Despite Changes to the Laws

Published on: June 8, 2016 | By McCulloch & Miller, PLLC

In many cases, the incapacitated person does need the protection of a guardian. But far too often, the guardian is the source of abuse, and the lack of oversight leads to appalling situations.

Celebrity cases where persons appointed as guardians fleece their relatives or sequester them against their wills in nursing homes may get the headlines, but what happens to regular people is one of the quiet shames of our country. Despite many changes in the law, vulnerable people continue to be abused by professionals and family members whose interests are not in the well-being of the person they have been court-appointed to protect.

When a judge imposes legal guardianship or conservatorship, the ward or "incapacitated person" may no longer be allowed to decide where to live or whom he or she will see. If a guardian is appointed, that individual gets to decide whether the ward is allowed spending money. He or she won't be able to enter into contracts, including marriage, or demand a different guardian—even if the guardian is abusing the ward or stealing his or her money.

New Rules You Need to Know About Social Security

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

Rules on claiming benefits were never simple and recent changes have eliminated "file and suspend" techniques. Here's what you need to know about Social Security benefits right now.

Social security was originally designed to serve the elderly and destitute, but today, working Americans depend on Social Security benefits to fund part—and often all—of their retirement expenses. Kiplinger's "10 Things You Must Know About Social Security" explains the new rules about Social Security.

Here are some of the essentials you need to know.

Not Your Everyday Yard Sale: Houston’s New Estate Sale

Published on: June 3, 2016 | By McCulloch & Miller, PLLC

Whether for reasons of death or divorce, an estate sale can be an emotional roller coaster. Prepare yourself for challenges so that you are not taken by surprise when possessions unleash a flood of memories.

It's not always easy to make rational decisions when handling the logistics of an estate sale, explains a recent post on WCPO, "4 tips for dealing with the emotional side of estate sale planning." Here are four good suggestions for dealing with the emotions that often accompany such an endeavor.

Get advice. Don't take on this responsibility alone. As you begin the process of selling the contents of an estate, find yourself a support system. This can include members of your family, friends, and experts (like an estate planning attorney). These folks can provide you with valuable advice, and you may feel more comfortable when you've considered input from others. Given that this is an extremely emotional experience; you might also want to talk with a member of the clergy or a counselor as you go through the steps of preparing for the estate sale.

Retirees Are Changing Things Up-Could Houston be a Hot Destination?

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

The entire US is up for grabs for retirees who are moving to a wide variety of location—from the mountains of Montana to the moderate temperatures of South Carolina. Is Houston a hot spot?

Once upon a time, if you lived in the north, your default retirement destination was either Arizona or Florida. Today, retirees are looking for low taxes, nice weather and an active lifestyle. They are finding it in many different locations.

The New York Daily News explains this and more in its article, "Forget Florida and Arizona — today's retirees are branching out all over the U.S." Women continue to live longer than men, but the difference has narrowed as the lifespan of males has grown consistently within recent decades. This means that the chances are better now that a married woman will spend additional time in retirement together with her partner than as a widow. Retirees are taking advantage of this additional time together by heading to new territories.

When Power of Attorney Forms Are Refused

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

This is one of those problems that you think you've solved, only to discover that the problem still exists. The best workaround we can think of: overdoing due diligence, well in advance.

When you took the necessary and advisable step to have a parent or other relative sign a durable power of attorney, you might have felt relieved, secure in the knowledge that you were now prepared and protected to handle their finances if they become incapacitated.

However, The New York Times explains in “Finding Out Your Power of Attorney Is Powerless” that when you take the witnessed and notarized document to a financial institution, the officials there may not accept the documents. They may not honor your power of attorney and may insist that the account owners sign the institution’s own power of attorney form.