Estate Planning

Houston Couples Can Avoid Retirement Pitfalls

Published on: April 3, 2015 | By McCulloch & Miller, PLLC

n nearly every way you could make a mistake — for example, saving too late — you can also make up ground by availing yourself of all resources at your disposal (say, your employer's 401(k) matching program). With that in mind, here’s a list of 28 major retirement pitfalls to avoid — and what to do if you end up taking some missteps.

Retirement planning is tricky, no? When and where and how much … there is no “one size fits all” when it comes to retirement.

Experts say that the right retirement plan involves timing and opportunity. But nobody’s perfect. We all are apt to make a mistake, but we can usually make things right. With that in mind, The Motley Fool compiled a list of 28 major retirement pitfalls, how to avoid them—and how to correct them if you take a detour in an article titled “28 Retirement Mistakes People Make.”

Distributing Houston Estate Among the Kids – Who Gets What?

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

In the book The Charles Schwab Guide to Finances After 50, author Carrie Schwab-Pomerantz poses the following scenario: “I’m confused about how to divide my estate between my children, who have different needs and financial resources. Is it best to divide it into equal parts?”

This question is directed at people who have children at different levels of personal and financial success, according to a recent Millionaire Corner’s article titled “Dividing the Estate: Treat Your Children Well.”It suggests that the parent in this scenario may want to do more for the struggling child than for the successful one as far as designating heirs for their estate assets.

The original explains that it makes sense for parents to treat their children equally. While one may think about providing extra assistance to a child with fewer resources, or for a child with special needs, you need to do so cautiously. The article also reminds us that the status of the children can change over time, making a strong argument for equal distribution.

Houston Families Can Explore Advantages of Charitable Giving

Published on: March 31, 2015 | By McCulloch & Miller, PLLC

Lifetime gifts may carry considerable advantages over charitable bequests, according to Atlantic Trust, the U.S. private wealth management division of CIBC (NYSE: CM) (TSX: CM).

Lifetime gifting allows you to see your donation make a difference. In addition to this giving advantage, there’s also the goals of receiving an income tax deduction or estate tax savings, explains the PR Newswire article titled “Benefits of lifetime charitable gifts can outweigh bequests.”

For instance, individuals who give cash to public charity typically are entitled to an income tax deduction of up to 50 percent of their adjusted gross income (AGI) or up to 30 percent of their AGI for donations of other appreciated assets that are held for at least a year. What’s more, these deductions can be carried forward for up to five years if they can’t be taken in the year the gift was made.

Should a Trust Last 360 Years? Several Mississippians Think So

Published on: March 30, 2015 | By McCulloch & Miller, PLLC

Legislation allowing Mississippians to place their assets in a trust for up to 360 years passed the state House and is now pending before Gov. Phil Bryant.

How long should a trust really last?

According to the Northeast Mississippi Daily Journal, Mississippi’s House Judiciary Chair Mark Barker said many states were passing laws allowing for the establishments of trusts for 360 years or longer. He also commented that this is actually the process already since there are loopholes in the existing state rules against perpetuities.

Plans to Secure Your Children’s Future

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

Although it is a difficult subject to face, you have options when it comes to protecting your estate and your family. The steps you take now can help prevent the wrong people from making decisions for your loved ones.

If you have minor children, who will take care of them in the event of your passing? Although no one likes to think about this, it is crucial that you make a plan for your Houston family.

A recent article from Military.com, titled “Protect Your Children's Future,”offers some ideas on how to protect your children. For starters, make sure to you have a will drafted by an experienced estate planning attorney. Be sure to name one or more people to be the legal guardian of any of your children you may have under age 18. [Note: In some states, like California, a will is not the only way to appoint such a guardian. Be sure to consult with an experienced estate planning attorney in your own state.]

529 College Savings Plans Key for Houston Families

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

Given the rising cost of most college tuitions, the complexity of college loan agreements and the difficulty for most middle-income families in simply maintaining their budget for ordinary daily household expenses, planning for your children’s college education is an important topic to consider at the earliest possible stages of a child's development. Fortunately, an established method of helping to accomplish this goal is the 529 college savings plan.

The 529 college savings plan is a way to save and set aside money specifically for the purpose of funding higher education. It’s a tax advantaged investment program that’s designed to help you fund future qualified education expenses. The benefits are that it offers flexibility, control, and tax advantages—plus it’s available to anyone who wants to make contributions for qualifying higher-education expenses without income limits (like Grandma or a favorite uncle!). The Legal Intelligencer’s recent article titled “529 College Savings Plans: How They Work” explains more, so let’s break it down.

The 529 owner keeps control of the assets and is allowed to choose how much and when money can be withdrawn. The owner can also change the beneficiary to a different family member related to the original beneficiary (see your estate planning attorney for the rules on this) whenever they like, and the investment allocation can be adjusted once a year.

Estate Planning in a Virtual World for Houston Planners

Published on: March 25, 2015 | By McCulloch & Miller, PLLC

Roos said it’s important that people plan ahead and put “someone in charge of these digital assets and giving the family the opportunity to take over accounts if something were to happen, so they can control the information so it doesn’t get into the wrong hands.”

Have you heard the buzz about digital estate planning? For those with online accounts—this includes online bank accounts, social media accounts, and photography accounts—these are part of your digital estate. And just like your physical assets, your digital assets need protection too.

A recent kcra.com report, titled Have you planned your digital afterlife?, reminds us that a digital estate can cause real headaches for grieving loved ones who may be attempting to access those accounts. The report recommends that people write down their passwords and make sure their trusted relatives will have access.

“Downton Abbey” — A Good Lesson for Houston Families

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

The viewers of this high-end PBS costume drama, which takes place about a century ago, could very likely be your clients' demographic. Look at who's a top corporate sponsor: Viking River Cruises, which told The New York Times that “our demographic is affluent Baby Boomers 55+.” It's a big group: more than 10.1 million viewers watched the first episode of the fifth season in early January. Look closely and see if Downton can impart valuable financial lessons to you.

It can be difficult to explain to clients the ramifications of putting off their estate planning. Sometimes people have to “see it to believe it,” so to speak. Enter PBS hit series, Downton Abbey.

Downton Abbey follows the lives of the fictitious Crawley family who live in a grand English country house in the early 1900s. Downton’s characters can teach some valuable financial lessons, according to AccountingWEB’s recent post titled, “8 Lessons You and Your Clients Learn by Watching Downton Abbey.

Houston Family’s New to Estate Planning? See Helpful Guide

Published on: March 23, 2015 | By McCulloch & Miller, PLLC

Whether you want to provide for your family after your death or you just want to ensure that the process is as easy as possible for your family, estate planning is the easiest way to accomplish your goals.

What exactly is estate planning? Are you unsure of where to begin?

“Estate planning is simply the fancy legal term for deciding what to do with your stuff after you are gone,” according to The Cheat Sheet article titled “A Beginner’s Guide to Estate Planning.” Although no one really likes to talk about dying and what will happen when they die, it’s important to start planning. You really want to start your estate planning now while you are still living (of course!) and in sound mental and physical health. Planning allows you to choose what happens to your assets and prized possessions instead of a relative, friend—or worse—the probate court. With some basic estate planning, you can ease the burden on your loved ones of dealing with your estate.

Yes. YOU Do Need Estate Planning!

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

Have you thought about dying lately? Most of us don't. Make sure you do some estate planning today before things get complicated.

End-of-life planning is not a fun topic to think about. Nobody wants to think about passing away, but is that going to change the inevitable? Not a chance.

A recent article in The Huffington Post, titled “Why We Avoid Estate Planning,”gives us reasons most of us avoid estate planning: