Estate Planning

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).

Scams Come in All Sizes: Inheritance Tax Scam Was XL

Published on: May 6, 2015 | By McCulloch & Miller, PLLC

“I would strongly urge anyone who is offered a lot of money for an alleged short-term loan to be very wary, as it is often a scam and a sure way to lose your hard-earned savings.”

Scammed by your own friend? Hey, it can happen. And not always in the way you may think.

Normally an inheritance scammer pretends to be an attorney or estate agent. They tell a potential victim that the victim has inherited a large fortune from an estranged or long lost relative. However, before the victim can get the inheritance, the scammer claims that the victim must cough up large sums of money to pay off taxes or other debts that the estate holds.

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.

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.