Estate Planning Lawyer

Think You’ll Live to Celebrate 100? Planning for Medical Care is a Must!

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

We understand people are living longer and many live into their 90s. More than 25 percent of seniors living at home receive help with day-to-day living activities. Ten percent of seniors older than age of 80 live in a long-term care facility. Have you made prudent plans for longer living?

Medical issues associated with aging are most apt to be the reason life gets expensive during your later years. It’s very useful to look forward and understand the types of medical issues that could happen down the road. That’s the advice from a recent article in the Oakville (ONT) Beaver titled“Living in your later years can be expensive – plan ahead.”Americans, just like our friends to the north, need to better understand how to plan for the future. This article gave some interesting perspectives on the aging process. Here are some facts:

People are living longer and many live into their 90s.

Houston Families Can Follow Guidelines for Children’s Guardians

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

Without a formal direction, your wishes must be interpreted and your estate must be settled by a probate court judge. The process is expensive and encourages disputes. But divvying up wealth is a whole lot easier than handing your children off to the state to determine where they go and how their care will be paid for. Just imagine the two grandmothers fighting over custody of your children?

For many young parents death seems like a long ways away. Regardless of how one feels, Houston parents of all ages should have their affairs in order—including guardianship. New Hampshire Magazine’s May 2015 issue addresses this issue and offers sound advice through an article titled “Don't put off writing down your last words.”

If you just can’t decide on a guardian, you should still move ahead with your estate planning. It is better to have this issue undecided than to die without a will. That said, the article suggests that it’s a good idea to nominate two people. That way you have one to be the guardian of the children and a second to be a trustee of the funds dedicated to their care.

Team Houston: Who Are Your Estate Planning Team Mates?

Published on: May 12, 2015 | By McCulloch & Miller, PLLC

If a Loved One or you have an estate plan, or even part of one, then some team members already are on board via the planning process and likely are actively serving or are nominated in the documents. They can have roles in the testamentary will, trusts, business purchase agreement, powers of attorney, medical directives or any of the other estate-planning instruments created during life.

Some team members are fee-based professionals, while others can be volunteers. In many instances, not all of the specialties will be required. Your estate planning team should consist of the combination of members that best suits your situation.

The Myrtle Beach (FL) Sun News recently published an article titled “Assembling your team for estate management”which reminds us that one person or a firm can serve in more than one fiduciary or team-member role.

Garden State Leads Nation in Highest Estate Tax

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

Sixteen states and the District of Columbia levy an estate tax with some taking a bigger piece of your estate than others. For this reason, it is critical to understand which states are going to take more out of your beneficiaries pocket when you die. So which states are the most costly?

Does your state have a death tax? While the federal applicable exclusion is $5.43 million in 2015 or $10.86 million for a married couple, many states have much lower thresholds. This casts a much wider net—meaning there’s a better chance that your estate will be subject to state tax.

An article in The Times of Trentontitled, “N.J. ranks among worst states to die from an estate tax perspective,” points out that some states don’t index their exemption amount for inflation, which gradually increases the number of taxpayers affected.

Twisted Sister Drummer’s Death Leaves Tangled Mess

Published on: May 8, 2015 | By McCulloch & Miller, PLLC

When Twisted Sister drummer AJ Pero died on March 20, it caught his fans and bandmates by surprise — and Pero’s own lack of estate planning has reportedly thrown his family into chaos as well.

Dee Snider stated in an article on the website ultimateclassicrock.com “not only did AJ Pero have a family history of heart disease, which he allowed to go unchecked, but he did not have a will, left behind two ex-wives, a longtime girlfriend, four children between the three of them and a mess of an estate to be sorted out.”

Now the article, titled “Twisted Sister Drummer AJ Pero Died Without a Will,”says there’s plenty of infighting, mistrust, and dissension among the family members about how to handle AJ’s estate. “What a mess.”

Subsequent Marriages Require Extra Planning

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

Below are a few important considerations for estate planning for second (or subsequent) marriages.

If you find yourself looking at marriage for the second or third time, you may want to browse over to The Des Moines Register for an article entitled “Estate planning for a second marriage” that discusses several great tips to keep in mind. Here are a few:

Discuss Money. This is a major cause of stress in any marriage; however, it can be really challenging in a second one. You and your future spouse should talk about and come to an agreement on all of the important financial issues. Make plans that both of you are okay with. If you’re considering a prenuptial or postnuptial agreement, it’s all the more important to tell all (finances-wise).

Is Estate Tax Nearing Death Sentence?

Published on: May 5, 2015 | By McCulloch & Miller, PLLC

The House voted last week to repeal the estate tax, a longtime priority of Republicans that also spurred Democratic charges that the GOP is in the pockets of the rich. The 240-179 vote broke down largely on partisan lines, with seven Democrats voting to repeal the estate tax and three Republicans voting against it.

Senator John Thune (R-SD) introduced legislation to repeal the estate tax, but it’s uncertain when or if that proposal might get a vote. There were 54 senators who supported the estate tax repeal last month in a non-binding budget resolution vote. Nonetheless, this is six votes short of the 60 needed.

The Hill’s article, titled“House votes to repeal estate tax,” notes that a repeal of the estate tax would increase the deficit by $269 billion over the next 10 years, and the Joint Committee on Taxation projects that the estate tax will impact 5,400 estates in 2015. This is approximately 0.2% of the 2.6 million deaths expected in the U.S. this year.

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.