Houston Estate Planning and Elder Law Attorney Blog

Beneficiary Designations: Do You Know Who’s Who in Houston?

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

If you don't remember who your beneficiaries are for your investment accounts, insurance policies or annuity contracts, then you need to carve out some time to go through your accounts and see who you named as your beneficiary. If it's been a while, you may be in for a rude awakening.

Beneficiary designations allow certain assets owned by an individual to transfer efficiently at her or his passing. These include retirement accounts like IRAs, Roth IRAs, 401(k)s, 403(b)s, 457(b)s, and pensions, as well as life insurance death benefits and the residual value of annuities.

These types of assets with designated beneficiaries will transfer automatically, despite anything written to the contrary in a person's will or trust. These assets with designated beneficiaries are also excluded from the decedent's probate estate unless the "estate" is the designated beneficiary.

Houston Families Can Tackle Tough Talk with Aging Parents

Published on: March 18, 2016 | By McCulloch & Miller, PLLC

You might be surprised to learn that your elderly or aging parents are more open to discussing their final wishes and estate planning than you, their adult child. If they have already begun the estate planning process, they have come to terms with their own mortality—or are in the process of doing so. Having these discussions with your parents in advance will provide you with practical information. They will take comfort in knowing that you are prepared for the future.

You will be very appreciative after they pass away for the opportunity you had to ask them the questions that will help you to understand their estate and their wishes.

The Huffington Post's recent article, "What Your Aging Parent Isn't Telling You – I Want to Discuss End-of-Life Issues," offers three tips to help you decide whether it's the right time to discuss end-of-life issues with your parent:

Is Roth IRA Conversion a Good Fit For Your Houston Estate Plan?

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

Not everyone who has a traditional IRA is a good candidate for a Roth IRA conversion, according to The Motley Fool's article, "5 Things to Consider Before Making a Roth IRA Conversion." While every person's situation is different, there are five key elements to consider before making the change to your retirement accounts.

Your tax bracket. These days it's not unusual for retirees to be in a higher tax bracket during retirement. However, many of us have the option of investing in a Roth IRA, which doesn't offer an up-front tax break—but lets you withdraw funds in retirement tax-free. If you think you are going to be in a higher tax bracket when you retire, you might consider converting some or all of your retirement savings to a Roth before you retire. Converting some or all of your traditional IRA money to a Roth IRA will also give you some tax diversification in retirement to hedge against future changes in tax rates and related rules.
Estate planning. One of the great things about a Roth IRA is that it isn't subject to required minimum distributions (RMDs) at age 70½, unlike a traditional IRA, where you must withdraw an IRS-mandated amount annually at that age. Plus, it's subject to income taxes. Roth IRAs can continue to grow tax-free for as long as you live, and if your beneficiary is your spouse, he or she can roll over the account and make the Roth IRA his or her own with the same rules (non-spousal beneficiaries are subject to an RMD, but that distribution isn't taxed). In addition, non-spousal beneficiaries can take the RMDs over their entire life expectancy. This is a terrific benefit for younger beneficiaries like children or grandchildren.

Farming Future Depends on Planning Now

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

Regardless of the ultimate outcome – passing the farm to the next generation or selling it – creating a plan for the future requires a lot of groundwork and the help of an estate planning attorney with experience in family farm matters, according to The High Plains/Midwest Ag Journal's article, "Planning for the future of your farm operation."

A business plan can be an important tool in estate and succession planning. This is a roadmap for the farm business, and it gives your business direction, helps you make decisions, and can assist in the future.

Make sure that you have the terminology correct. "Estate planning" deals with the disposition of your assets during your lifetime or after your death, while a succession plan is the transitioning of your farm to the next generation or others to ensure the continuation of the business.

Glen Campbell’s Alzheimer’s Journey Helps Others Cope

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

Wife of music legend Glen Campbell, Kim thought that her husband's forgetful moments were part of the normal aging process. Once she realized that his symptoms were not normal, she went to the experts and got the bad but necessary news. In 2011, at age 79, Glen Campbell was diagnosed with Alzheimer's. His farewell tour was planned, and his final performance took place on November 20, 2012. A documentary of his Alzheimer's diagnosis and final tour, Glen Campbell: I'll Be Me, was released in 2014.

"Getting the diagnosis helped me a lot," Kim Campbell said in a recent telephone interview with the Lexington Herald-Leader, in "Wife of Glen Campbell takes on role of Alzheimer's advocate, speaker." She was candid with the reporter, admitting, "Before the diagnosis, I would get frustrated with him, and irritated and annoyed."

Alzheimer's impacts about half of all people over the age of 85 and kills nearly 100,000 Americans each year. It's named for the German doctor Alois Alzheimer, who discovered the distinctive tangles and plaques of the disease in the brain of a female dementia patient in 1906.

Renee Benson Wins, Is Named Trustee for Her Late Mother’s Assets

Published on: March 11, 2016 | By McCulloch & Miller, PLLC

A settlement agreement approved today by a probate court judge in Texas has NFL owner Tom Benson's estranged daughter Renee Benson replacing her billionaire father as a trustee overseeing her late mother's assets, as reported by the San Antonio Express News in "Tom Benson's daughter wrestles control of $1 billion trust in settlement."

The trust, valued at approximately $1 billion, was set up in 1980 after Tom Benson's first wife died—but before he took over as the owner of the NFL New Orleans Saints and the NBA New Orleans Pelicans.

Forbes said the elder Benson has a net worth of about $2.2 billion.

Good Decisions Today Pay Off For Houston Planners

Published on: March 10, 2016 | By McCulloch & Miller, PLLC

Let's continue addressing a series of money decisions from Forbes' "10 Financial Choices You'll Regret in 10 Years," regarding financial choices we make in the earlier part of our lives that are surprisingly important—but we don't always see how important they are until it is too late.

Here are the next five decisions:

Trying to be a DIY investor when you haven't a clue what you're doing. Would you try an open heart surgery after watching a few YouTube videos? Of course not. So why would you consider investing by yourself without the help of a professional?

Author Harper Lee Protect Privacy Throughout Life

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

When the author of "To Kill a Mockingbird" was found to have written another novel, "Go Set a Watchman," there was much mystery about the second book, which generated a fortune. Now the mystery surrounds the estate of Nelle Harper Lee.
While the value of her estate isn't exactly known, an old lawsuit showed that Lee earned nearly $1.7 million during a six-month period in 2009 — before she announced the release of her second book last year, sales of which were well over $40 million.

The International Business Times says in its recent article, "Did Harper Lee Have a Will? Here's What Could Happen To The 'To Kill A Mockingbird' Author's Money," that Lee never married and had no children. Her parents and siblings died years ago—and those closest to her have been accused of scamming her. So what happens now?

Lee once publicly said she had a will, but only her friends and family know for certain. She most likely didn't die without her affairs in order: her father and sister were both practicing lawyers (and her estate has been involved in several lawsuits). But given her reclusive nature, she may have created a trust rather than a will. Wills become public record when they are submitted to probate court, but trusts are continued by a successor trustee and administered accordingly. Some reports say

Do You Suspect Elder Abuse? Take Action, Houston!

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

One of the biggest reasons not to act when you suspect elder abuse is taking place is simply not knowing what to do. We know who to call for domestic violence or when a child is being abused. But for an elderly neighbor? The same kind of help and the same anonymity is in place – something most of us just don't know.

The Avery (NC) Journal-Times' recent article, "Safe steps when suspecting elder abuse," discusses suggestions from the North Carolina Division of Aging and Adult Services to put your mind at ease. In that state, people are encouraged to contact the local Adult Protective Services (APS), where a trained social worker will visit the neighbor and assess the situation.
Last year the state saw more than 24,000 reports of suspected abuse, neglect, or exploitation, which indicates that many individuals did do something to help their neighbors. But the national statistics say that only 1-in-5 incidents of elder abuse get reported. As a result, many incidents may have gone without any help.

North Carolina's laws require that anyone having reasonable cause to believe that a disabled adult is in need of protective services must make a report to the local Department of Social Services (DSS) APS unit. DSSs are statutorily mandated to receive information reported and determine if the report satisfies the criteria for evaluation. North Carolina law protects adults with disabilities age 18 and older, but the majority of reports involve those who are 60 years of age and older.

2016 Social Security: Houston Residents Need to Know About Changes

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

In the article "Social Security Changes in 2016.", AARP provided a full list of the Social Security changes for this year.

No Bump. Social Security beneficiaries will not receive a cost-of-living adjustment (COLA) due to low inflation. This is the third time since 2010 that beneficiaries won't see a raise.

Your Average Monthly Social Security Benefit. The maximum monthly benefit for workers retiring at full retirement age is $2,639. The average monthly benefit for all retired workers is $1,341.