Elder Law Retirement Planning

Caregiving for Loved Ones, Without Family Feuds

Published on: December 24, 2014 | By McCulloch & Miller, PLLC

Although nobody can be forced to participate as a caregiver, there are ways to approach the situation that are more likely to have a positive result.

Families encounter many issues when planning care for a loved one. A common issue is the unwillingness of siblings to “step up to the plate” and make a contribution to the caregiving tasks.

The (Carlisle, PA) Sentinel’s recent article, titled "Elder Care: Keeping family conflict to minimum," explains that even though no one can be forced to participate as a caregiver, there are some ways to approach the situation that may yield more positive results.

Leaving Texas or Home State to Retire? Do Estate Planning Homework First

Published on: December 8, 2014 | By McCulloch & Miller, PLLC

"During their careers, their 'acquiring wealth years,' many people live in places that have lots of jobs – and the higher cost of living that goes along with that," Friedman says. "In retirement, many of them want to move to a state where they can enjoy the same or an even better lifestyle with less money. For that, it's essential to consider not only the cost of living but the state laws that affect your accumulated wealth and income."

Pre-retirees need to consider a lot more than snow days and tradition, according to a 2014 Bankrate report and a recent Investor Ideas article titled "3 Tips for Retiring Out of State."

States have different tax laws and other regulations that can significantly affect your retirement funds. Be aware of these as you plan for where you want to live and how you want to live.

Plan Wisely for Medicaid or Else! One State’s Warning

Published on: December 4, 2014 | By McCulloch & Miller, PLLC

This case has drawn plenty of attention due to its legal and financial implications. Essentially, the case has escalated to the point of a federal judge warning state regulators that she would consider issuing an order to drop Ohio from Medicaid enrollment altogether, leaving the Buckeye State without federal funds to provide medical care for its elderly residents.

The State of Ohio is penalizing seniors by refusing to grant them long-term care benefits because a spouse or close relative has purchased a Medicaid-compliant insurance annuity. Medicaid administrators in Ohio say that an elderly nursing home patient is not entitled to long-term care benefits as long as he or she has a relationship with an individual who has purchased an annuity.

Other cases have been filed in federal courts in Ohio, and one federal judge has warned Ohio officials that she may hold them in contempt if they don’t follow federal law. The latest lawsuits filed against Ohio’s Medicaid administrators were brought by three elderly women whose husbands used their retirement accounts to buy annuities, which State Medicaid investigators say is illegal.

Reverse Mortgage Schmortgage … Look at Other Options in Houston

Published on: November 10, 2014 | By McCulloch & Miller, PLLC

Home equity loans can be problematic if not done correctly and require careful attention to the rights of the surviving spouse, if you are married. And of course, the end of the process means you or your heirs give up your home. There are other ways to tap into your home’s equity that are worth considering. Here, we take a quick look at the top alternatives to reverse mortgages.

Is a reverse mortgage really the answer to your cash-flow needs? It all depends on your situation and the options at hand.

A recent Investopedia article, titled "5 Top Alternatives To A Reverse Mortgage," examines some of the top alternatives to reverse mortgages.

Plan Before Alzheimer’s Strikes Your Houston Family

Published on: October 24, 2014 | By McCulloch & Miller, PLLC

Medical research confirms one of the first things people have trouble with in the very early stages of dementia is managing personal finances. This means people can make very expensive financial mistakes, often before anyone notices there is a problem. I have seen this happen, and it is heartbreaking.

You never know what the future holds, so early planning for late-in-life health issues is essential.

For instance, you may notice that a loved one seems more disorganized than usual. Bills may pile up. The loved one may have difficulty remembering names and fumble for the right words. See a doctor if there are concerns. Alzheimer's Disease and most forms of dementia are progressive. This means it will get worse over a few years.

Houston Families Beware: Elder Abuse by a Spouse Can Happen

Published on: October 23, 2014 | By McCulloch & Miller, PLLC

The woman Benny claims took advantage of him was his second wife. He says after he had a stroke, she threw him in a nursing home and never saw him again.

At one time, World War II veteran Benny Goo was very affluent with a gorgeous home in Hawaii. Now, Benny has nothing. He says that a woman named “Barbara” stole $2 million from him, which forced him to sell his home.

According to a KLAS TV(Las Vegas) news report posted on the station’s website, titled "Veteran claims elderly abuse by ex-wife," Benny believes that “Barbara”—the woman who took advantage of him—was his second wife. Mr. Goo said that when he had a stroke, Barbara placed him in a nursing home. He never saw her again. However, Barbara was busy cleaning out his bank account and switching his Social Security and pension checks to be deposited directly into her accounts.

Financial Pointers: Providing Care for Aging Parents in Houston

Published on: October 17, 2014 | By McCulloch & Miller, PLLC

Dealing with aging parents is not only tough emotionally, but financially.

As one's parents age, financial and health care discussions are essential for families to have in order to plan ahead for any care they may require.

A recent Newsday article, titled"Money Fix: The cost of caregiving," tackled this tough issue and offered some financial and non-financial advice to help with providing care for aging parents.

Partial Roth IRA Conversions May Reduce Tax Impact for Houston Investors

Published on: September 8, 2014 | By McCulloch & Miller, PLLC

Today, ordinary income plus various other taxes could boost the effective tax rate on those second-level RMDs well over 40%. Who knows what tax rates might be in effect when current clients eventually pass their IRAs to future generations?

Some individuals choose to have partial Roth IRA conversions so they remain in their current income tax bracket and decrease other taxes and charges, according to a recent article in Financial Planning titled "Estate Planning: Smart Roth Conversion Trick." Along with a Medicare surtax and deduction phase-outs, Medicare Part B premiums are also part of the mix.

Medicare enrollees typically pay about $105 monthly for Medicare Part B. This covers doctor bills and some other medical expenses. However, seniors who have a modified adjusted gross income (MAGI) above $85,000 (or $170,000 on joint returns) will pay anywhere from roughly $145 to $335 a month for that same coverage. This is because Roth IRA conversions increase an individual's MAGI. The original article advises those in this situation to take an annual series of partial conversions now to thereby limit future taxes, as well as “stealth” taxes like extra Part B premiums.

Long-Term Care Planning for Houston Boomers: Medicare vs. Medicaid

Published on: September 4, 2014 | By McCulloch & Miller, PLLC

Although their names are confusingly alike, Medicaid and Medicare are quite different programs.

What is the difference between Medicare and Medicaid? There are strict income and asset guidelines that must be satisfied to be eligible for Medicaid coverage. While Medicare is solely a federal program, Medicaid is a joint state-federal program. Each state operates its own Medicaid system, but it must adhere to federal guidelines to receive federal funds. Federal money pays for half the state’s Medicaid costs, and the state pays the rest.

Long-Term Care Planning

Tips for Planning The “Financial Talk” With Houston Parents

Published on: August 21, 2014 | By McCulloch & Miller, PLLC

The best time to discuss finances with your parents is when they are competent, self-sufficient adults. Planning ahead and seeking out the appropriate professional financial assistance on their behalf can help ensure your parents enter their golden years in the most comfortable, stress-free and secure way possible.

You may dread having the "financial talk" with your aging parents, but this is one conversation that needs to happen sooner rather than later.

A recent article on KARE11.com, titled "Helping aging parents with financial matters," wisely advises approaching this topic in a respectful manner. The article stresses that you be extremely mindful of the delicate nature of your parents' financial and emotional needs, and that you should not step in if it is not necessary.