Houston Estate Planning and Elder Law Attorney Blog

Houston Seniors Face Growing Debt Burden

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

When you live on a fixed income, any increases in your living costs present a huge challenge. For Manny Martinez, whose sole income is his monthly Social Security check, even living in rent-controlled senior housing doesn't protect him from being squeezed when costs go up. There are months when he has no choice but to accept food from the very same church food bank where he is a regular volunteer.

Martinez said it doesn't pay to get a part-time job because his rent would increase.

Martinez hasn't had to borrow money, but his situation is similar to many seniors who are struggling to get by, says The Daily Item in "New Report: More seniors falling into debt."

Estate Planning is the Perfect Gift for Your Houston Family

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

In the absence of proper estate planning, medical care decisions can be delayed and families may face expensive and unnecessary costs. Think of your estate planning as a gift you can provide for your loved ones that will let them know you were thinking of them after you have passed. Grief is a painful process, even when loved ones have a long and full life. You can make it easier or harder for those you leave behind.

Make sure to state your wishes in the proper estate-planning documents. To complete these, consult with an estate planning attorney and keep the originals in a safe deposit box with a copy at home or on your computer. Some folk have their attorney hang on to the originals.

Nerd Wallet's article, "10 Keys to Proper Estate Planning," reminds us of the four key legal documents you should have in place, plus an additional one you might want to consider.

Single? Plan Your Own Funeral to Celebrate Your Houston Life

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

Midlife singles are used to directing their own lives, but many worry about what will happen when they die. With strains of The Beatles' song Eleanor Rigby in their ears, they worry that their funeral will be unattended and sad. This is one problem that has a solution: planning ahead.

The Pew Research Center's 2014 study, A Record Share of Americans Have Never Married, found that there's been a steady increase since 1970 in the share of the U.S. population that remains never married by the time they reach ages 45 to 54.

Forbes' recent article, "Single People Worry: Who'll Be There For Us?" sought advice from some of the funeral industry's leading experts, who offered these recommendations:

Oregon Signs New Law Protecting Digital Assets

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

Portland is widely recognized as one of the most innovative cities in the US, and a new law reflects Oregon's tech culture. With the signature of Governor Kate Brown, Oregon has enacted Senate Bill 1554, which grants legal access to digital assets to a person named in an estate plan as a designated fiduciary. This was reported in "Governor signs new law which protects digital assets" from kitv.com.

In order to gain this access, an individual must affirmatively state in his or her estate planning documents that they want a fiduciary to have online access. If not, it defaults to the terms of service agreements, which have been the source of great distress to many individuals and families.

A mother who lost her son 10 years ago after a motorcycle accident wanted to access his Facebook account as a tribute to him.

Wealthy Family Goes Public With Estate Battle

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

Facebook has become the source of revolutions, personal journeys, and now, estate battles. When one of America's most admired art collectors passed away last year, she had an estate plan in place. Her husband of 14 years apparently didn't like the terms and is challenging the will. Her adult children from her first marriage are furious, and one is very publicly sharing his anger and disgust on Facebook.

The New York Post Page Six reports in "Melva Bucksbaum's $100M estate battle rages on Facebook" that the battle began when Melva, a former trustee of the Whitney Museum, died at 82 last year. Her husband Raymond Learsy—a trader, developer, and fellow Whitney board member—challenged her will and claims he's entitled to half her fortune, which is worth more than $100 million.

The action infuriated Melva's adult children, Gene and Glenn Bucksbaum and Mary Bucksbaum Scanlan. Glenn says that Learsy schemed to seize the family millions. He wrote on his public Facebook page, "Raymond Learsy…This name should be known. Full definition of cad. 1: An omnibus conductor 2: a man who acts with deliberate disregard for another's feelings or rights."

Houston, Do You Know the True Cost of Divorce?

Published on: March 24, 2016 | By McCulloch & Miller, PLLC

Once the initial emotional trauma is past and the couple starts working towards creating separation agreements, it's time to consider the day-to-day costs of living that change as the result of a divorce. The family economic unit that formerly had one mortgage or rent payment, one cable bill, one energy bill, etc., now has two of each of these bills. Wise planning for life after divorce includes living expenses, taxes and retirement planning.

Money's recent article, "Keep a Divorce From Killing Your Finances," offers several important tips for those going through or recently completing the divorce process.

Monitor assets in your divorce settlement: If you're in the midst of a divorce, examine the type of assets that you receive as part of your divorce property settlement. The reason for this is your cash flow. Even in cases where the math demonstrates an equal split between the two parties, one spouse could get stuck with a non-liquid asset, which might end up being difficult to liquidate if cash flow becomes a problem.

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.