Asset Protection

Change in Lifestyle? Change Your Beneficiaries, Too!

Published on: December 15, 2015 | By McCulloch & Miller, PLLC

Naming a beneficiary for your IRA, 401(k) or any other retirement plan and then making sure that the name is right as you go through the many stages of life could be one of the most important financial decisions you make, according to The (Crystal Lake, IL) Northwest Herald in "Rectifying the retirement minefield."

Of course, if you want to give your retirement savings to your first husband, he won't mind. But your second husband might!

If you're married, you'll want to designate your spouse as the primary beneficiary. Federal law requires your surviving spouse to be the primary beneficiary in employer-sponsored retirement plans, like a 401(k), unless your spouse signs a written waiver letting you name someone else as the primary beneficiary. In most cases, spouses will name each other as the primary beneficiaries to their retirement plans. Those funds help maintain the lifestyle they've enjoyed in their marriage.

Nevada TV Investigation Leads to Clark Co. Guardianship Reform

Published on: December 14, 2015 | By McCulloch & Miller, PLLC

Much needed changes are underway at the Clark County Nevada Guardianship program, after a local television reporter uncovered major lack of oversight, including families torn apart and financial abuse by the individuals charged with protecting the elderly. According to a follow-up report by KTNV News, "More staff means more oversight in guardianship system," some of the changes are the establishment of a hotline and the examination of all guardianship processes.

Clark County District Court will add more staff to better supervise guardianship cases in response to what they have termed a clear need for compliance oversight after the KTNV investigation showed double billing and questionable charges. They found cases where the entire life savings of vulnerable "wards" went missing and their homes were sold without court approval.

The court has hired a new Guardianship Compliance Administrator who will oversee the adult guardianship program, create a citizen complaint process, and look into any claims of discrepancy or fraud. The court is also taking action on several other issues stemming from the news investigation, including greater transparency and scrutiny of how private professional guardians handle a person's money.

The Countdown to 2016 is On!

Published on: December 11, 2015 | By McCulloch & Miller, PLLC

New Year's resolutions are a favorite tradition. But have you taken care of your end-of-year tasks concerning your finances. There's still time to finish off your 2015 list!

US News reminds us in "6 Financial Tasks You Need to Complete Before the End of the Year" that there are several opportunities for smart financial moves and some last chances to take advantage of financial benefits. The article lists six things to consider crossing off your 2015 list in the next few weeks:

Make a Charitable Donation. Your donation to a charity is tax deductible. Why not do this and take the deduction on your 2015 tax filings? Charitable donations are nice for homeowners who itemize because they get the full benefit of the deduction.

NFL Players Now Have Support Network to Ease into Civilian Life

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

The transition from pro football to civilian life is easier for NFL players who can get assistance from a comprehensive support program created by the NFL and the NFL Players Association. The program recognizes the challenges facing retired football players as they shift to life without football. Many have no experience handling finances or coping with emotions of day-to-day living.

A recent article in The Employee Benefit News, "NFL aims to keep players financially fit," describes "The Trust," which officially launched in 2013. It's an extensive financial wellness program that includes education, lifestyle, health, and career services. It has helped about 1,000 former players each year.

Players who enroll are assigned a case manager who identifies their key issues. Then The Trust and its service partners devise a customized "game plan" that tells the player where he is financially, where he should be, and how to get there. A critical part of the program works to create a community for these retired players where they share their personal stories with each other and mentor others who are in need.

Retirement Planning Should Be Main Goal in 2016

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

uilding a nest egg is an important goal for Americans, yet most Americans lag behind in their retirement planning goals. Many families are still recovering from economic downturns, and saving is a struggle, even for people who are over 50 and know they should do more. There are certain tax breaks and, if you are lucky enough to work for a great company, employer contributions that can help grow your retirement savings in 2016.

US News explains how to take full advantage of the 401(k) and individual retirement account perks you're eligible for in 2016 in "How to Maximize Your Retirement Accounts in 2016."

Max out your 401(k). You can contribute up to $18,000 to your 401(k) plan in 2016, which means saving $1,500 per month. Income tax isn't due on this money until it is withdrawn from the account.

TV Crime Boss Not Wise Guy About Estate Planning

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

The irrevocable charitable lead trust is a trust that cannot be amended, revised or cancelled. We would call that bullet-proof, and it would have been a good idea for preventing James Gandolfini's estate from being "whacked" by estate taxes. The financial website thestreet.com took a closer look at this powerful estate planning tool in"How to Protect Your Estate From Getting 'Whacked' Like James Gandolfini's.

This trustprovides a stream of income for a designated number of years to the specified charity. At the end of that period, the property held in trust reverts back to the donor or to the donor's designated beneficiary.

When the donor makes the gift under a charitable lead trust, he or she immediately receives a federal income tax deduction equal to the present value of the future income stream. But the donor is taxed every year on the value of the income interest that is payable to the charity.

Take Time After Receiving an Inheritance Before Investing

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

If you inherit a portfolio or a large amount of money, proceed with caution, according to "What to Do When You Get an Inheritance," in US News & World Report. Every situation is different, but a few basics need to be kept in mind for heirs who are thinking about investing their inheritance in stocks, bonds, hedge funds or any other investment vehicles.

First, get good information and consider assistance from an expert: speak with an experienced estate planning attorney, one who worked with those giving the inheritance. Heirs should find a CERTIFIED FINANCIAL PLANNER™ practitioner who works for a registered investment advisor with a fiduciary duty to their clients. They aren't commissioned salespeople.

If the inheritance involves a larger sum, it can be administered via a trust that needs to be funded properly due to tax ramifications and expenses.

Determining Value of a Property Partnership Can be Fair

Published on: November 19, 2015 | By McCulloch & Miller, PLLC

Ending a property partnership is often a lot like getting divorced. Most splits are the result of an irrevocable break in the personal relationship of the partners, the investment becoming a cash drain, or siblings who inherited property together and now want to sell. In a perfect world, property partnerships end when all partners are ready to sell and move on. But when that is not the case, being able to agree on the value of the property based on a rational evaluation can save all parties concerned a lot of wasted time and resources.

Determining fair value for property owned in a partnership can be approached in a business-like manner in order to avoid possible litigation, according to "Splitting up property is hard to do," from The Orange County (CA) Register. Unfortunately, this is not always what happens when it becomes necessary to place a value on jointly owned property.

If you are really interested in getting to a fair property value for all concerned, there's a formula for the situation where one party wants to purchase the other party's share and keep the property. In that case, each party chooses one appraiser, and each conducts his or her own appraisals. Then the two appraisers agree on a third appraiser to do another appraisal. The final value is an average of the two appraised values closest to each other.

Is Your Estate Plan In Place?

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

Perhaps the biggest reason to have an estate plan is to decide who will raise and care for your children if you and your spouse should both pass away. An experienced estate attorney who is knowledgeable about guardian ship laws in your state can help you make a plan, as noted in Houston (MO) Herald's recently published article, "Establish an estate plan before death comes knocking."

It is easy to put off these tough decisions by thinking we have plenty of time, but the truth is that we really don't know how much time we're going to have.

It's also easy for disagreements and misunderstandings to occur when someone passes away, particularly when the ownership of assets isn't clear. A professionally drafted will and other estate planning documents can eliminate much of this stress and heartache. The cost of settling an estate may be high, but it's even higher if an estate plan isn't in place.

Art Collections Can be Estate Tax Burden for Houston Families

Published on: October 19, 2015 | By McCulloch & Miller, PLLC

Americans love collections and homes across the country boast music collections, rock collections, sea shell collections and the list goes on. Often, these personal collections hold a great deal of sentimental value while their market value is nil. Typically, favored items are passed on to the family members who will treasure them while the collections’ value presents very little impact on the estate.

However, an art collection is different because works of art can be extremely valuable.

As the New York Times points out in "Estate Planning Can Get Tricky When Art Is Concerned," art collections require very careful estate planning. The biggest issue is that art is illiquid. If the estate tax is due, then the heirs have to come up with cash to pay it. This requires them to use other estate assets or to sell the art.