Estate Planning

Should Houstonians Downsize In Retirement?

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

Emotionally, it's hard to let go of a home filled with memories. Moving is a hassle, and downsizing to a smaller home isn't always the cash bonanza some might expect.

When entering your golden years of retirement, what is the ideal living arrangement for your new stage of life? Do you stay in your home where you've made life-long memories? Or do you downsize to something else in hopes of saving on expenses and maintenance?

Even if you have yet to confront these fundamental retirement questions, you ought to consult a recent article in The Wall Street Journal titled “When Should Retirees Downsize Homes?” The Journal asks, “when” not “if,” but that does not mean there is not another side of the story. Enter the DailyFinance with an article providing yet additional reasons to stay put. In fact, that article is aptly titled “7 Reasons Not to Move in Retirement.”

Lifetime Gift Exclusion And Recent Surge In Gifting In Houston

Published on: February 13, 2014 | By McCulloch & Miller, PLLC

The law created a chance for wealthy families to move assets out of their estates and let their heirs benefit from any appreciation in value, said Lisa Featherngill, a managing director at Abbot Downing, a wealth-management unit of Wells Fargo & Co.

According to official numbers recently released by the IRS, U.S. taxpayers transferred $122 billion in non-taxable gifts in 2012. To put that number in perspective, it is quadruple the tax-free gift giving of 2011 and 2012 combined.

This wealth transfer tsunami was the subject of a recent Bloomberg article titled “Tax-Free Gifts Quadrupled in U.S. After IRS Limit Lifted.”

Are You Making Plans For Your Digital Estate, Houston?

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

Without a plan in place, you risk burying your family in red tape as they try to get access to and deal with your online accounts that may have sentimental, practical or monetary value.

Just when you think you've covered all your bases when planning for your estate, the issue of your digital accounts comes up. Yes, all of your online accounts need to be considered too. Have you made proper arrangements for them?

The problem of the digital estate is an entirely 21^st century problem. Thankfully, more information is coming to light about the consequences of failing to make plans for digital assets. If this is a new subject matter for you, then you will want to read a recent MarketWatch article titled “Who gets your digital fortune when you die?”

Inherited Homes And The Challenges Ahead for Houston Families

Published on: February 3, 2014 | By McCulloch & Miller, PLLC

The process of selling a relative’s home is likely going to be emotional, from the sorting of the personal belongings to the finalization of the sale at the closing table. Expect that. And surround yourself with professionals who will be empathetic and helpful.

Many would agree that selling a home is a stressful process, maybe even claiming a spot on the "top 10 most stressful life moments" list. Even if it sells fast, there is still the hassle of moving itself. What about hen it is not your home at all? What if it is the home of your parents, and perhaps your sole inheritance, with or without siblings?

When it comes to selling an inherited home, there are some complications to ride out and with which you must deal. For guidance, consider reading are recent MarketWatch article titled “How to sell an inherited home.”

The Roth IRA Is “Mr. Popularity” in Houston and Beyond

Published on: January 27, 2014 | By McCulloch & Miller, PLLC

Conversions from regular IRAs to Roth retirement accounts increased more than nine times in 2010, rising to $64.8 billion from $6.8 billion in 2009, according to data released [January 3rd] by the Internal Revenue Service.

As reported in Bloomberg on the day of an IRS announcement, conversions from traditional to Roth IRAs increased by nine times in 2010. That was the first year of new laws surrounding the tool, pulling in over 10% of all millionaires with it. Indeed, this rise in popularity means a Roth IRA is food for thought.

For a bit of the history behind the IRS data, have a look at the original Bloomberg article titled “Tax Break for IRA Conversion Lured 10% of Millionaires.” Roth IRAs are just another IRA in that it is an account earmarked for a retirement account. Interestingly, Roth IRAs work backwards by taxing at the time of deposit rather than at the time of withdrawal. That timing is the crucial difference.

The Law Blurs The Lines Between Life And Death for Houston Families

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

"It seems like there seems to continue to be confusion about what it means to die using neurologic criteria," said Cynda Hylton Rushton, professor of clinical ethics at Johns Hopkins University.

Two recent medical cases are making headlines over the often blurry lines between life, death, medical ethics and the law. When confronting issues like brain death and life support, what is the "right" decision for the patient?

CNN recently considered these two cases in the headlines and the surrounding issues in an article titled “When 'life support' is really 'death support'.”

The Many Methods Of Leaving An Inheritance in Texas

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

People who take good care of their children take good care of their money, and people who take good care of their money take good care of their children.

Money can bring about both the good and the bad, depending on how one uses it. So you can imagine how concerning it is for parents and grandparents to make the best decisions for their heirs regarding their inheritances. A recent Forbes article titled “What Can We Do With Money For Our Kids?” explores a few tools that may help.

As an alternative to gifting money outright to your children or grandchildren, the article explores Roth IRAs, 529 plans, annuitized gifts, and even UTMA/UGMA accounts. While there are many wealth transfer tools and methods, the key is asking yourself a few important questions upfront.

New Year, New Estate Plan for Houston Residents

Published on: January 20, 2014 | By McCulloch & Miller, PLLC

Estate planning is a difficult topic to address because it requires you to think about a world without you in it. No one likes to reflect on their own demise, which is why many people simply put estate planning off for another day and only get around to it when the chips are down.

A new year means a new start — another "go" at those to-do lists. Will estate planning make the list this year? Estate planning is not always easy think about, but it is oh so necessary.

Understandably, musing over matters of your own disability and death are not at the top of anyone’s list of “fun things to do,” they are a matter of personal, adult responsibility. In addition, plans can get rather complex when it comes to complex lives, complex families, and complex assets. As with most complex but essential matters in life, it is best to start with the basics.

Inheritance Isn’t Always About The Cash

Published on: January 17, 2014 | By McCulloch & Miller, PLLC

“Money can be divided pretty evenly, but the teacup that grandma always used? Maybe there’s only a $2 value associated with that teacup, but because of the sentimental value and the emotions around it, that causes the controversy.”

While it is easier to think about an inheritance as money or assets, don't forget the other valuables that get left behind. The gift of “family” itself in the form of history, stories, memories, and mementos are also part of your legacy — a part that your heirs may value more than the cash.

For support of this notion, consider the findings of a recent survey of baby boomers, as reported in a recent article of MarketWatch titled “Your heirs want this even more than your money.”

Beneficiary Designation Debacle

Published on: January 15, 2014 | By McCulloch & Miller, PLLC

If your beneficiaries are out-of-date, when you die, your assets could go [to] the wrong people – a former spouse, for example – no matter what your will says.

Often, the biggest mistakes we can make when it comes to our estate planning are also some of the easiest to prevent. For example, the consequences of failing to update your beneficiary designations can be catastrophic, while the “fix” is as easy as a phone call or completing a paper (or online) form.

A recent Forbes article titled “The Big Estate-Planning Goof You May Be Making” puts the importance of proper beneficiary designations in perspective.