Houston Estate Planning and Elder Law Attorney Blog

Judge Sealed Probate Records in Rare Oklahoma Case

Published on: October 2, 2015 | By McCulloch & Miller, PLLC

Probate records are open to the public and many individuals seek planning methods that may protect the privacy and security of survivors. Estate planning is one tool where individuals may keep the contents of their wills, details of assets, and private matters private.

Interestingly, judges have the authority to seal probate records on a case-by-case basis if there is just cause to do so. However, that authority is rarely used. Nevertheless, in the case of Mark Costello, an Oklahoma judge has sealed his will.

So, who was Mark Costello? The Labor Commissioner in Oklahoma.

Contract Term Plagues Stevie Wonder

Published on: October 1, 2015 | By McCulloch & Miller, PLLC

Early in his career Stevie Wonder signed a contract with Motown Records. Like thousands of other recording artists, the terms were more beneficial to the record companies than for the artists. Wonder secured an attorney, Johanan Vigoda, to help him disengage from the Motown contract.

Vigoda was also able to secure a lucrative new contract for Wonder that was considered to be one of the best in the industry. Vigoda passed away in 2011.

Vigoda’s widow now claims that Wonder has failed to live up to that contract. A provision in it gives 6 percent of Wonder’s royalties to Vigoda and to Vigoda’s heirs in perpetuity. The 6 percent is higher than music industry standards and the perpetuity clause is also irregular.

Is the Rent Due When Tenant Passes Away?

Published on: September 30, 2015 | By McCulloch & Miller, PLLC

An aging woman posed a question to The New York Times “Ask Real Estate” columnist regarding her rented apartment. The woman asked if her daughter would be responsible for the older woman’s signed lease, if she passed away while still a tenant in the apartment. Her question appeared in a recent column, “A Noisy Cafe Next Door.”

The expert’s opinion?

The woman’s estate would owe on the lease and need to make regular payments. However, New York law does provide that the tenant’s estate can attempt to find a new tenant which the landlord must accept if reasonable.

It’s 100 Birthday Candles for Estate Tax

Published on: September 29, 2015 | By McCulloch & Miller, PLLC

Our nation’s estate tax celebrates the hundred year mark in 2015. The often controversial estate tax stands to gain even more attention as the 2016 Presidential election draws near.

The estate tax has been central to many debates during past Presidential elections. Republicans continue to call for the abolition of the estate tax, while Democrats ask that it be strengthened.

The two sides could not be further apart on the issue.

Do You Have a Plan in Mind?

Published on: September 28, 2015 | By McCulloch & Miller, PLLC

We’ve been taught since childhood to plan for college, plan our careers, plan our families, and plan for retirement. However, end-of-life planning advice is rarely followed.

Survey after survey reveals that most Americans do not have estate plans. Recently, the Huffington Post published “5 reasons to Plan Ahead for the End-of-Life.” A doctor gives reasons why you should plan ahead, including:

Financial Legacy – If you do not have an estate plan, then your estate will be divided according to a default law that determines who gets what. Any wishes that you have about what will happen to your assets will be disregarded.

James Brown Estate Remains in Dispute

Published on: September 25, 2015 | By McCulloch & Miller, PLLC

The ongoing James Brown estate battle continues and the complexities begin with the value of the estate.

As you may recall, his estate plan called for his music empire to be put into a charitable trust and used to help needy students. Nevertheless, despite the fact that his will contained a no-contest clause that stated that anyone who contested the will could receive nothing, the will has been the source of ongoing challenges since the musician passed away in 2006.

At one point a settlement was brokered by none other than South Carolina’s Attorney General Henry McMaster. However, that settlement was ultimately rejected by the South Carolina Supreme Court.

Family Run Foundations: Subject to IRS Scrutiny

Published on: September 24, 2015 | By McCulloch & Miller, PLLC

The goals of a family foundation may be ensured by appointing family members to head up the foundation. Children or siblings of the deceased are usually appointed to run these foundations, with the hopes that they know better than anyone unrelated to the family how to achieve and maintain the values and goals of the foundation.

This “keep-it-in-the-family” approach may not be the best in every family.

The New York Times, in “When Family Members Run Foundations, Scrutiny Never Ends,” identifies some of the potential pitfalls awaiting unwary family members when running a family foundation.

IRS No Longer Accepts Checks Exceeding $100 Million

Published on: September 23, 2015 | By McCulloch & Miller, PLLC

If you are planning to issue your next $100 million tax payment to the IRS via check, better make arrangements for an alternate payment method. The IRS has announced that it will no longer accept payments by check in excess of $100 million.

In the modern grocery store, scanners are used by people who bag their own groceries and pay with a swipe of a credit card. Express lines ferret out the quick buyers from the people stocking their homes for the next six months. Despite these advances and time saving technology, there’s one thing that drives everyone on the checkout line crazy.

That is when a person in front of them pays with a check.

IRS Announces New Estate Tax Rule; Implementation Guidelines Not In Place

Published on: September 22, 2015 | By McCulloch & Miller, PLLC

The IRS enacted a new law that required any estates filing Form 706 after July 31, 2015 to report the value of the estate within 30 days after filing the estate form. However, the IRS never issued any implementing regulations for the law. As a result, the IRS has recently announced that the requirements will be postponed until February 29, 2016. Mondaq.com reported this development in an article titled “IRS Postpones New Requirements For Estates To Report Asset Values.”

This does not mean that estate administrators should do anything different than they were already planning to do. It is still important to get proper valuations of estate assets as they will have to be reported for estate tax purposes.

The IRS will eventually implement regulations for the new rules and estate administrators should be ready to file at that time. On the upside, the postponement may give some administrators a little more breathing room.

Finalize Your Estate Plan for Planning Your Estate Sale!

Published on: September 21, 2015 | By McCulloch & Miller, PLLC

Baby Boomers have long dictated trends and styles. Today’s Boomers continue to establish trends as they begin their down-sizing moves. Estate sales are a growing niche as older adults scale back their lifestyles. Estate sales have become big business as aging Americans decide that they’d rather let someone else handle the details, according to the Detroit Free Press article, "Estate sales boom with aging demographics."

What is an estate sale? It is an auction where one’s household belongings are put up for sale. They are popular for buyers because estate sales often contain older, valuable possessions that can be purchased at a discount. In fact, some people even make a living out of buying items at estate sales and selling them for retail elsewhere, such as their own shops or on eBay.

As a result, there appears to be two groups of “sellers” who might consider having an estate sale.