Estate Planning Lawyer

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.

Long-Term Care Insurance: Good Investment for Houston Families

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

Nursing home and other long-term care expenses can be a financial burden for most families. And although long-term care insurance policies can help offset those expenses, LTC premiums are on the rise and can be quite costly. It can take careful planning to determine if LTC premiums can be paid for, without dipping into retirement funds.

When people purchased their policies 10 to 15 years ago, nursing home costs were about $150 or $200 a day. In some parts of the county, today’s costs can exceed $400 a day, or $12,000 per month for higher levels of care.

The expense incurred by the insured going on claim has caused the long-term care insurance industry to downsize. Those companies still offering policies are bumping up the premiums amid the rising cost of long-term care.

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.

Thanksgiving Dinner: Time to Discuss Estate Planning?

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

Long-standing American family traditions are changing with the times. The sled trips through snowy woods and icy rivers have given way to cross-country jet flights and international Skype visits. But regardless of the changes, when you all do sit down to a holiday meal, according to thestreet.com's "Estate Planning Over Thanksgiving? Time to Talk Turkey," this is a perfect time to start talking about important family matters, including estate planning.

If families or cultures are averse to raising such topics around the holidays, there should be an annual meeting to let family members know where an estate plan stands.

When combing through assets, remember that no item is too small for discussion, especially during the holidays. It is a natural time for emotions to run high, but it is a great time to discuss items of seemingly insignificant value that may take on added significance for each potential heir.

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.

Cost of Adoption Can be Offset with Tax Credits

Published on: November 20, 2015 | By McCulloch & Miller, PLLC

The average family can face high expenses when adopting a child. But there are tax benefits that will provide some help, as reported in The Middlesboro (KY) Daily News article, "Thinking of adopting? Be prepared for expenses." Among the benefits are an exclusion from your taxable income of employer-provided adoption assistance and a credit for qualified adoption expenses.

The maximum tax benefit you can claim for this year is $13,400, which is reduced if your modified adjusted gross income (MAGI) exceeds $201,010 and is completely phased out if your MAGI is $241,010 or more. The adoption tax credit is nonrefundable, so it's limited to your tax liability for the year.

For example, say that you pay $13,400 in qualified adoption expenses in 2015, and your employer reimburses you for $3,400. If you meet the MAGI guidelines, you can exclude $3,400 from your gross income for 2015 and can claim $10,000 ($13,400 minus $3,400) for the adoption tax credit.

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.

Can You Be A Millennial Millionaire in Houston?

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

The one thing that all 401(k) millionaires have in common, according to a Forbes' article "Nine Ways To Be A Millionaire In Retirement," it is saving at a much higher amount than others. Whatever your career path may be and whatever your earnings level is, start saving early.

While millennials often have a competing priority with paying student loan debt, it's still important to make sure some of your money is going into retirement.

Live like a college student. Even if you are making very little, you should "mind the gap" – that is, the gap between what you spend and what you earn. Make sure there is a gap and keep your expenses low. Try to live like a college student when you're earning your first salary. Maybe have Ramen noodles and hot dogs on at least some evenings.

Houston: Why Do You Need Life Insurance?

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

It's no surprise that many Americans have chosen not to have any life insurance at all, according to NASDAQ's recent article, "Why Have Life Insurance?" A recent study by a life insurance advocacy group, LIMRA, revealed that most Americans think that life insurance is expensive. They were asked to name the price of a 20 year, $250,000 level term life policy for a healthy 30 year old and were off by several hundred dollars. The anticipated annual cost was $400, while the real cost of such a policy is more like $150. The study found that 85% of Americans are not buying life insurance, and this price perception may be part of the problem. That's not including the people who purchase insurance that is not right for their needs, who overpay for insurance, or those who are insured for so little that their unexpected passing will assuredly put their family's financial future at risk.

That's why it's important for you to sit down annually with an insurance professional to review your policy and also to speak with your estate planning attorney about the role life insurance may play in your overall estate planning strategy. Reviewing your life insurance policies is one way to make sure you have the coverage that is right for you and your family as you age and your family situation changes.

Basic Types of Life Insurance