Elder Law Retirement Planning

Rent or Sell Houston Home? Downsizing for Aging Parents

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

As the executor of [my mom's] estate, I'm trying to help her decide what to do with the house. Let another family member live in it who couldn't pay rent but could help with upkeep? Rent it out for market value? Or sell?

If she hasn't already, an article in The LA Times titled “Consider tax implications when downsizing,” recommends that she needs to hire an experienced estate planning attorney who can help her evaluate her options.

If she sells, she could possibly be in for a shock because there might be a considerable capital gains tax on the sale. Federal law permits a set amount of capital gains on the sale of a primary residence ($250,000 per person) to be excluded from income. However, anything above that amount would be taxed heavily as a capital gain.

Tips for Houston Families Caring for Aging Parents

Published on: January 26, 2015 | By McCulloch & Miller, PLLC

Adult children who become caregivers often pay a steep price. However, with some smart strategies, you can avoid sabotaging your financial future.

What can you do ahead of time to help ease the financial burden of caring for your aging parents?

Look into potential tax breaks.

New Year…New Financial Goals for Houston Families

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

The New Year is a great time to regroup on your financial plans, reevaluate and/or create new financial goals. By sticking to your financial resolutions throughout the year, you can keep on track towards achieving your financial objectives in 2015 and beyond.

Make the New Year a happy one by getting your finances in order. Setting some basic goals can help make 2015 one of the best years yet.

Make a budget. Creating a budget is the key to long-term financial success. Nonetheless, a 2013 Gallup poll found that only one in three Americans maintained a budget. A budget takes on even more importance when you plan to move into retirement and leave a steady paycheck to live on a fixed income.

Three Questions to Ask Your Houston Elder Law Attorney

Published on: January 16, 2015 | By McCulloch & Miller, PLLC

Three estate planning questions to ask your parents right now.

Caring for aging parents poses many questions, some of which you want to get out of the way early on. A recent article in The Oprah Magazine,titled“Sanity-Saving Secrets For Caring For Your Aging Parents,” suggests three questions to ask your parents right now.

1. Do you have a living will? There are about 72% of seniors who already have advance directives specifying end-of-life medical wishes, according to a recent study funded by the National Institute on Aging. That’s terrific, but make sure your parents are in that group. As long as you’re on the subject, see if their documents have been revised in the last five years and that you know its location.

Finding Financial Resources for Your Houston Parents

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

We asked experts to let us in on a few resources most people overlook.

Need more cash to help care for mom and dad? A recent Oprah Magazine article, titled “Sanity-Saving Secrets For Caring For Your Aging Parents,” has some ideas where to look for funds to support your parents in retirement.

Here are some of those ideas from the original article:

Got Medicaid? Get Prepared, Houston!

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

Here are some "Get's" that will help you prepare for the Medicaid application process.

Get going five years before you think you need to. Medicaid has a five-year look back to all your parents' financial dealings. Which means transactions conducted during that time may be counted in determining their program eligibility. With this requirement, it’s good to have your parents' banks' names and numbers accessible. Regulators are looking at two things: if you're hiding any money and if you've given any away.

Also, if one or both of your parents still live in the family home and you’d like to keep it, you should try to transfer ownership or set up a trust at least five years before they apply for Medicaid. Although there are some exceptions, typically if you don’t address this issue, you will be forced to sell the home.

2015: New Financial Goals for Houston Families

Published on: January 13, 2015 | By McCulloch & Miller, PLLC

If history is a guide, this coming week nearly half of us will make resolutions seeking to improve some facet of our lives, many of which will be focused on personal finance. If one of your goals for the New Year is to get your financial life in order, here are a few key areas which should be included on your 2015 financial planning checklist.

As you begin compiling your 2015 financial goals, one of the first items on your list should be to calculate how much money you'll need in retirement. It’s one of the most significant math problems you’ll do after you finish grade school. Once you have arrived at the answer to this math problem, you need to examine if that answer will create a problem for you as you prepare for retirement.

With that target in place, pay heed to the advice in an article from Seacoastonline.com titled “Start your 2015 financial planning checklist.” Consequently, you should create a strategy that will help you achieve that goal. A savings plan is one method you can use—and take maximum advantage of any tax-deferred savings opportunities available to you along the way.

Estate Planning for Houston Families without the Stress

Published on: January 7, 2015 | By McCulloch & Miller, PLLC

Wouldn’t knowing someone will step in if you become incapacitated create a little peace of mind? Wouldn’t knowing that your family is taken care of create even more peace of mind? Wouldn’t knowing there is a plan in place – a plan you developed – if something happens to you take a significant weight off your shoulders?

Estate planning can do a lot of things for you, but one of the most valuable takeaways is peace of mind.

A recent Forbes article, titled “11 Fundamental Elements of a Stress-Free Estate Plan,” provides practical advice on how to design a plan that protects your assets and provides for loved ones. While everyone’s individual needs are a bit different, there are some basic components you need to examine along with deciding who gets what.

Ring In the New Year with a Roth IRA

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

Sharron Epperson, who is CNBC’s senior personal finance correspondent, stressed the importance of retirement planning in the coming year — with two products in particular.

Need a financial resolution for 2015? Save as much money as you can in a Roth IRA. One of the best things you can do to set yourself up for financial success in the future is to be strategic with your savings.

According to a recent article at gobankingrates.com, titled “CNBC’s Sharon Epperson on Why You Need a Roth IRA in 2015,” in the event of an emergency make sure you're able to withdraw your contributions at any time without incurring penalties or fees. This is also a terrific way to save for retirement, because you might be in a higher or lower tax bracket when you’re in your 60s. Who knows?

Recent Survey Says 80% of Americans Failed Retirement Literacy Test

Published on: December 30, 2014 | By McCulloch & Miller, PLLC

“We’re not surprised by the fact that people don’t know a lot about retirement income planning,” says David Littell, program director at the American College. “I was surprised at how badly they did.”

Could you pass a retirement literacy test? Apparently, 80 percent of Americans surveyed did not.

These Americans were polled on 38 retirement literacy questions on basics like Social Security, life expectancy, IRAs, life insurance and investments, and the mechanics of bonds. Sadly, only 20 percent were given passing grades, the college said. This isn't the first survey to raise concerns about Americans’ retirement readiness. In an article titled “Americans fail in retirement literacy,“ The (Palm Springs, CA) Desert Sunnoted similar shortcomings in a 2011 report.