Estate Planning

Houston Families and Spousal IRA Heirships

Published on: May 2, 2014 | By McCulloch & Miller, PLLC

A spouse who inherits an IRA has a choice. The surviving spouse can move the account into an inherited IRA to keep the tax shelter. Or she can choose to roll the account into her own IRA.

There are some unique rules that go into effect when an IRA is bequeathed and inherited. If a spouse is inheriting the IRA, they have extra leeway that’s worth putting to good use.

The sorts of things an IRA inheriting spouse ought to think about don’t make the headlines quite as often. However, DailyFinance offered a helpful guide a short time ago in an article titled “When A Spouse Inherits An IRA.”

Estate Planning No-No’s for Houston Families

Published on: May 1, 2014 | By McCulloch & Miller, PLLC

If you wish to ensure that your estate does not fall prey to predators, creditors or taxes, keep reading to be sure you're not committing the five cardinal sins of estate planning.

Just as it's important to know what to do, it's vital to know what NOT to do. Take estate planning for example. It takes a great deal of training to know what to do to best plan and structure an estate plan. That’s why you consult competent and experienced legal counsel. And knowing what NOT to do is part of that planning.

Maybe you’ve yet to start and maybe you’ve been working with an estate planning attorney for some time and piecing together some foolhardy designs. Either way there are some basic types of blunders that can befall anyone not wary enough to look for them.

Getting the Biggest Bang in Houston for Your Inherited Property Buck

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

Perhaps the more important detail of this story is that the home was sold in an estate sale by heirs who appear to have let the property go for considerably less than market value.

Inherited property brings with it certain important responsibilities, and that goes double and triple for executors or trustees. The gifted property can be an immense gift and boon to your future. Even if it’s not going to be a home to live in and is just an asset to sell, what a windfall it can be!

There are all sorts of liabilities, insurances, and special transactions that might become important when a piece of real property is at stake. However, foremost at issue for heirs is selling it at the right value. Indeed, responsibility for understanding the real estate market or knowing whom to trust when selling real estate is something an heir takes on.

Heirlooms Encompass Memories for Houston Families

Published on: April 22, 2014 | By McCulloch & Miller, PLLC

Time, it seems, has healed past wounds enough to leave us remembering Grandpa Oscar with a smile. Very belatedly the violin has served its purpose. We can hold on to the memories and let go of the object.

Family heirlooms seem to have special powers over the family. Memories and story-telling often result in the discussions of an inherited object. As one sitting down to put your intentions to paper, or even as the inheritor, it is a power worth pondering.

There are always the goals and intentions of the planning parent, of course. Nevertheless, more often than not, it is the family that sees the peculiar power of an heirloom. Maybe it is something well-loved and fought over, or the heirloom may simply provide the tinder to which a disgruntled heir may choose to set match and light a fire.

Wealth Transfer Goal: Keeping the Houston Family Together

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

“I had this fear that wealth could dissolve the family and the business would disintegrate,” Mr. Wiener, 68, said. So he hired coaches and consultants, had family meetings and set up a family foundation — all with the goal of keeping his family together after he died. “It’s not perfect; it’s an evolving process.”

Whether rich or poor, homey or worldly, it’s about keeping the loved ones together and passing on the family wealth most efficiently.

Whatever your station, you might learn a thing or two from the problems faced and solved by others. As the New York Times notes in a recent article titled “Looking for Ways to Keep Money From Dividing a Family,” you can especially learn from those who happen to be part of an exclusive club like Tiger 21.

Stepping Up with Portability in Estate Planning for Houston Couples

Published on: April 18, 2014 | By McCulloch & Miller, PLLC

One of the key advantages of a portability-based estate plan over a credit shelter trust-based estate plan is that portability allows the married couple to obtain a second step up in basis upon the death of the second spouse.

With the new ability to minimize estate taxation, known as “portability,” there is now a choice between the automatic portability plan and the old standby of the trust-based plan, notably the credit shelter trust plan.

One important detail driving the choice is the “step up in basis,” as pointed out in a recent Forbes article titled “Portability Plans Vs Credit Shelter Plans Round 1: Step Up in Basis.”

No Need For Your Life Insurance? Donate It To A Houston Charity!

Published on: April 16, 2014 | By McCulloch & Miller, PLLC

There are several ways to donate a life insurance policy to charity, according to the Planned Giving Design Center, Monroe, NC.

There are many advantages to life insurance as it can be a cushion against high-cost issues or a source of much-needed cash flow for your family. However, you might end up not needing it all. If this is the case, what do you do with the policy?

The good news is that you can kill two birds with one stone. Have you thought about donating your life insurance to a worthy cause?

Proper Planning For Alzheimer’s Patients in Houston

Published on: April 14, 2014 | By McCulloch & Miller, PLLC

Alzheimer’s patients live for years with diminished mental skills, which makes it crucial that they make decisions early on about how their care should proceed.

Planning for one’s estate and for one’s late-in-life plans requires more than a bit of wherewithal. This is not only an empirical fact but also a legal one. Because Alzheimer’s and dementia affect the mind means certain legal choices, whether regarding healthcare or disposition of property to one’s heirs, simply have to be down and in writing well before they are questionable.

It’s a complex problem. Fortunately, there are some important tools to keep in mind early and get a plan in place. Some of the basics were helpfully pointed out in a LifeHealthPro article last month titled “4 things to know about Alzheimer’s and estate planning.”

Deciphering The Technical Language Of Trusts

Published on: April 11, 2014 | By McCulloch & Miller, PLLC

NING, Ding, Grat. Ilit, Crat, Crut, Qtip.

So what are these oddly named trusts and what do people who need them need to know?

Ever been to a place where you don't understand the language? Learning a new language is no easy task. At least when it comes to French or Italian (or Hindu, Swahili or Balinese, if you happen to be that well-travelled) most us of who can’t speak a lick can get through with pointing and smiling. However, when it comes to technical languages there is a different type of difficulty.

Houston Older Adults Should Get Wishes In Writing Before It’s Too Late

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

Stop saying everyone knows what you want. Everybody probably doesn’t know. Or in their grief, they may not be able to make the decisions you would have preferred. If you don’t leave written instructions, emotions or unresolved issues can get in the way.

The amount of frustration a family goes through when someone’s affairs are not in order and not in writing is beyond measure. When tragedy strikes or life takes over, the importance of planning is not lost on those who realize there were no plans made. What can you really do after the fact? Proper planning needs to happen now.

For an impassioned voice on the matter and some advice you should heed, be sure to read a recent commentary published in The Washington Post titled “Put your estate plan on paper before it’s too late.”