Estate Tax

Four Rules to Know about 2015 Estate Taxes

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

Here are four rules you need to know about the estate tax for 2015.

The estate tax exclusion is now $5.43 million. The federal estate tax applies only to those whose taxable estates exceed a certain amount. The U.S. has a unified gift and estate tax system, so if you make taxable gifts during your lifetime you'll use up some of this $5.43 million in advance. In addition, you will need to file a gift tax return even though you won't have to “pay” a gift tax at the time you make the gift.

The annual gift tax exclusion is still $14,000. This an annual exclusion makes most gifts nontaxable, so you can give up to $14,000 in cash or property to anyone again this year.

529 Plans and Tax Incentives for Houston Families

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

“We see that as a big driver for everyone – the opportunity to put your money into the market and get that appreciation and have all those earnings tax-free when you use them for qualified expenses at a university or trade school, or wherever your child or grandchild, or whoever it is you're saving for, decides to go,” Creonte says.

If you are saving up for your child's (or grandchild's) college education, you'll want to consider a 529 College Savings Plan.

What is a 529 Savings Plan? A 529 plan lets an individual contribute after-tax dollars that are designated for qualified higher-education expenses. These expenses include tuition and fees, books, room and board, computers, and supplies. The distributions of these funds for qualified higher-education expenses are not subject to federal income tax. However, states may treat these disbursements differently. As a result, 529 plan investors need to understand the tax strategies that are available to them.

Staying in Control of Your Houston Business

Published on: January 22, 2015 | By McCulloch & Miller, PLLC

Many business owners fear losing control. Before they’re willing to address exit or estate planning options, they must first be assured of complete dominion over their business. So let’s look at how to lock in ownership.

Are you worried about losing control of your business?

A recent Forbes article, “Control Freaks Take Heart: How To Maintain Control Of Your Business,” offers some ways to assure firm control of a closely-held company.

New Year…New Financial Goals for Houston Families

Published on: January 21, 2015 | By McCulloch & Miller, PLLC

The New Year is a great time to regroup on your financial plans, reevaluate and/or create new financial goals. By sticking to your financial resolutions throughout the year, you can keep on track towards achieving your financial objectives in 2015 and beyond.

Make the New Year a happy one by getting your finances in order. Setting some basic goals can help make 2015 one of the best years yet.

Make a budget. Creating a budget is the key to long-term financial success. Nonetheless, a 2013 Gallup poll found that only one in three Americans maintained a budget. A budget takes on even more importance when you plan to move into retirement and leave a steady paycheck to live on a fixed income.

2015: New Financial Goals for Houston Families

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

If history is a guide, this coming week nearly half of us will make resolutions seeking to improve some facet of our lives, many of which will be focused on personal finance. If one of your goals for the New Year is to get your financial life in order, here are a few key areas which should be included on your 2015 financial planning checklist.

As you begin compiling your 2015 financial goals, one of the first items on your list should be to calculate how much money you'll need in retirement. It’s one of the most significant math problems you’ll do after you finish grade school. Once you have arrived at the answer to this math problem, you need to examine if that answer will create a problem for you as you prepare for retirement.

With that target in place, pay heed to the advice in an article from Seacoastonline.com titled “Start your 2015 financial planning checklist.” Consequently, you should create a strategy that will help you achieve that goal. A savings plan is one method you can use—and take maximum advantage of any tax-deferred savings opportunities available to you along the way.

Keeping a Vacation Home in the Family

Published on: January 9, 2015 | By McCulloch & Miller, PLLC

Make a detailed plan for the home's future to avoid family feuds down the road.

Many memories are made in family vacation homes, and a lot of families do not want those traditions to end when a loved one passes. However, experts say you need to be careful in planning so the home's future isn’t the source of feuding. The biggest mistake owners can make is to fail to make a detailed plan for the home's future, cautions a recent Kiplinger's Retirement Report article titled "How to Pass Down a Vacation Home."

If an owner says “I don't care, I won't be here,” it rarely leads to a happy result. As we always say, besides honesty, communication is the best policy. Owners should meet with their adult children and spouses to create a plan for either keeping the vacation house in the family or selling it. Families can also get help from an experienced estate planning lawyer to develop ideas and plans.

A Trust Can Help Keep Public Lives A Bit More Private

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

In all likelihood, [film director] Nichols had a "revocable living trust," that contained the dispositive provisions of his estate so that his wishes were shielded from the public.

Celebrities and high-profile estates tend to be a hot topic in the media, but sometimes the media doesn't get the full story.

An article from The National Review, titled "The Death of Mike Nichols and Estate Planning," sheds some light on why we know so little about the estate of award winning director Mike Nichols.

Estate Planning for Houston Singles: What You Need to Know

Published on: January 2, 2015 | By McCulloch & Miller, PLLC

“For those who are single, whether they’ve always been single or they find themselves single again, there are some unique [estate-planning] issues,” says Doug Rothermich, managing director, wealth-planning strategies at TIAA-CREF.

Married couples usually can see the benefit of having an estate plan, but single people mistakenly think estate planning does not apply to them.

Accordingly to a recent Wall Street Journal article titled “Estate-Planning Essentials for Single People,” single people face some unique estate planning issues. This is true whether they have always been single or now single again.

Ring In the New Year with a Roth IRA

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

Sharron Epperson, who is CNBC’s senior personal finance correspondent, stressed the importance of retirement planning in the coming year — with two products in particular.

Need a financial resolution for 2015? Save as much money as you can in a Roth IRA. One of the best things you can do to set yourself up for financial success in the future is to be strategic with your savings.

According to a recent article at gobankingrates.com, titled “CNBC’s Sharon Epperson on Why You Need a Roth IRA in 2015,” in the event of an emergency make sure you're able to withdraw your contributions at any time without incurring penalties or fees. This is also a terrific way to save for retirement, because you might be in a higher or lower tax bracket when you’re in your 60s. Who knows?

Store-Bought Gifts? Give Assets to Houston Families Instead

Published on: December 31, 2014 | By McCulloch & Miller, PLLC

Gifting can be an estate planning tool, for you can save on future estate taxes and have the pleasure of watching your dollars work for your children or grandchildren while you are still alive.

If you're tired of the standard store-bought items for gifts, you may consider a different spin on gifting. What about giving away some assets to your children or grandchildren?

In certain states, the estate exemption is just $1 million, not the $5 million (indexed for inflation) as at the federal level. CBS Boston's recent posting, titled “All About Gifting Assets,” warns that things can get complicated pretty fast and you should have a good estate planning attorney to help you.