Asset Protection

Late-Life Marriages Go Beyond the Music Selection

Published on: May 4, 2015 | By McCulloch & Miller, PLLC

Coming together at 50-plus is different from getting married in your 20s, particularly when it comes to money. "You've had a lifetime of solidifying your money beliefs" and behaviors, says Janet Stanzak, president of the Financial Planning Association. These are some ways to smooth the transition if you're tying the knot this summer.

It’s true, marriage at 50 looks a lot different than marriage at 25 for most Houston couples. And no, we aren’t talking about the latest wedding fashions or honeymoon destinations. Financially, there is much to consider when getting married past 50.

AARP Magazine published an article titled “4 Smart Money Moves If You Marry After 50”last summer that did a great job of discussing some reminders before saying “I do” after you turn age 50. These reminders will work for you if you are walking down the aisle this June, July, or August.

Houston Millennials Require New Financial Planning Strategies

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

Financial planner Joe Pitzl, 34, says Millennials like himself have a different way of absorbing information than their parents and grandparents, and as a result planners in that age group take a more collaborative approach.

As reported in a recent USA Today article, titled “For Millennials goal is financial freedom,” some financial planners are finding that Millennials prefer to work with those who understand their generation. They don’t respond to the same advice given to their parents, and they’re really looking for coaching on financial health as opposed to traditional financial strategies.

This is a group that’s probably going to have several jobs in their lifetime and is used to being able to get answers with the click of a button. Many Millennials also may have a ton of student debt and may have had trouble finding a job which means that the financial strategies that worked for their Baby Boomer or Gen X parents might not fit their circumstances.

Retirement and Estate Planning: Tax Codes Kinder to Married Couples

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

Although some couples remain unmarried to protect their estates, that strategy backfires if you end up paying estate taxes. If you choose not to marry, you and your partner need to educate yourselves on your estate planning and retirement options.

If you’re married, you’re able to inherit an unlimited amount of assets from your spouse—without paying any state or federal estate taxes. In addition, you’re permitted to give an unlimited amount of assets to your spouse while you’re alive without filing a gift-tax return.

This exemption doesn’t extend to unmarried couples. Estates of up to $5.43 million are exempt from federal estate taxes. Some states, however, have lower thresholds for their estate or inheritance taxes.

Caution: Possible Estate Planning Mistakes!

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

"The costliest errors are ones we make ourselves, often without realizing how much damage we're doing."

"Estate planning is intertwined with the financial plan," a newsmax.com article explained, and it’s no secret that many individuals fail to prepare for retirement. When doing an estate plan, the article offers some sound advice:

Make sure an estate planning attorney examines every major financial document;

Are Houston Boomers Neglecting Their Estate Planning?

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

"If you are looking at Baby Boomers, they are looking at what their cash flow will be in retirement," says Carol Kroch, managing director, wealth and philanthropic planning at Wilmington Trust in Wilmington, Del. "Can they do the things they want to do? Can they retire? Can they keep the house? They are not focused on death."

Failure to consider wills and estate planning is a frequent issue, and not just for Houston Boomers. Seniors usually think that it’s something they can put off and deal with later.

USA Today recently published an article, titled “Big retirement mistake: Boomers with no estate plan,”that offers several tips for people who might be lagging behind in their retirement savings. The article emphasizes that there are three very important things to think about when you start your estate planning (this week!):

Retirement Planning Mishaps Can Impact Houston Seniors

Published on: April 27, 2015 | By McCulloch & Miller, PLLC

Here are a few of the most common mistakes we’ve seen seniors make in regard to their retirement planning.

Sometimes knowing what NOT to do is just as important as knowing what to do. So it is with retirement planning.

Physician’s Money Digest lists some of the most common mistakes that the authors have seen seniors make in a recent article titled “Top Mistakes Seniors Make”:

Does Your Houston Estate Plan Need a Charitable Remainder Trust?

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

When Detroit businessman Dick E. Morand died in 1977, he ensured that his estate would continue giving for decades after his death via a charitable remainder trust.

Morand died at the age of 87. He was founder and owner of D.E. Machinery Company and was vice president of Addy-Morand Machinery Company. His wife, Helen, died in 1976 and the couple had no children. Now, five Metro Detroit nonprofits are benefiting from Morand’s trust.

Morand’s trust is really the gift that keeps on giving.

Retirement Planning Issues for Small Business Owners

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

Now is the time for small business owners to evaluate their year-end retirement planning while building a retirement budget line item for next year.

A recent article in The (Great Falls MT) Prairie Star, titled “Review estate, tax and retirement planning issues now,” argues that a farm or ranch operation should include retirement savings for the owner and/or employees as a part of annual budgeting. These retirement funds provide tax savings now and may provide liquidity and income when the decisions for retirement and/or farm transition take place.

Small businesses, including self-employed taxpayers, have two choices after the end of the year to establish and contribute to a retirement plan. These two choices are the Simplified Employee Pension (SEP) plan and the individual retirement arrangement (IRA). A taxpayer has until the due date of the business federal tax return (including extensions) to set up and fund a SEP, but IRAs can’t be funded after the due date of the taxpayer’s personal federal income tax return.

Death and Debts: What Can You Do?

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

Sometimes, a loved one’s estate may include debt. Do you know what to do should if you are the spouse or heir that inherits debt?

If you aren’t sure what to do with a loved one’s debts after they pass – or what to tell others to do with your own debts – you may want to read a recent article in The Huffington Post titled “Debt and the Deceased: How Should Spouses and Heirs Proceed?”

Be honest about your financial situation. It’s not that easy for some family members to discuss debt issues, especially older Americans who hoped for better at the end of their lives. Even so, parents and their adult children or spouses should thoroughly talk about any outstanding debts that could affect the borrower's estate.

Paper Stocks – What Did Ronald Read Teach Investors?

Published on: April 17, 2015 | By McCulloch & Miller, PLLC

Individual investor Ronald Read has made the news because his personal investing strategy relied heavily on paper stock certificates. Today, investment advisors encourage individual investors to convert stock certificates to electronic form and consolidate stocks with a professionals so that heirs will have an accurate record of ownership.

In addition to his paper stock certificates, Ronald Read had stock positions held directly at transfer agents (the official record-keepers for share ownership), as well as in a Wells Fargo brokerage account.

Is this a good idea?