Houston Inheritance

Houston Parents Need to Protect Children with Estate Planning

Published on: January 14, 2016 | By McCulloch & Miller, PLLC

An unmarried father-to-be asked what he needs to do to protect the mother of his child in the column "Having a baby, but not married? Some financial advice," from New Jersey 101.5. His concern is well founded because if something unfortunate happened to him, she would not be first in line for his assets. He also asks if the necessary documents are prepared while they are unmarried, what needs to be changed when and if they do get married?

In many states, the rights of unmarried couples are different than those of married couples. As far as a minor child, child custody issues are the same whether or not you are married, as the courts make decisions based upon the best interest of the child. Of course, the surviving parent will be the default guardian, but in the event that both parents die, issues can arise without a will and the designation of an alternate guardian. In addition to an unforeseen death, you also need to consider what could happen if you and your partner split up.

Distribution of property is very different between married and unmarried couples that break up. If you are married, almost all property will be distributed equitably and alimony can be awarded. However, when unmarried couples split up, individual property is retained by the original owner—and only jointly-owned property, like a home with both names on the deed, is divided between the parties. Further, neither party of an unmarried couple gets alimony, but this can be addressed by an unmarried couple if they sign a Cohabitation Agreement.

Advance Planning Important for Families Facing Incapacity

Published on: January 11, 2016 | By McCulloch & Miller, PLLC

Those holiday gatherings were important for Houston families. And, family gatherings can be a valuable time for family discussions and decision making. This is particularly true for families facing the issues of legal incapacity, according to The Huffington Post. The article, "Legal Issues for Concerned Family and Friends of a Possibly Incapacitated Individual," advises that functional capacity is contextual. The challenges an individual faces in daily living and how well they are being addressed is sometimes hard to pin down. The legal terminology is frequently vague and inconsistent. Terms such as "incompetent," "unsound mind," and "incapacity" are used interchangeably.

State statutes typically define an "incapacitated person" as someone who, because of a physical or mental condition, is substantially unable to provide food, clothing, or shelter for himself or herself, to care for the individual's own physical health or to manage the individual's own financial affairs.

The courts will often require expert testimony and reports as to the individual's physical or mental state before rendering a judgment. Many states use a required standardized "Certificate of Medical Examination" form to be submitted to a court, which has the specific statutory definition of incapacity. It will often have boxes for the physician to check and a space for his or her comments.

Houston Heirs Will Thank You for Proper Estate Planning

Published on: January 4, 2016 | By McCulloch & Miller, PLLC

Financial planners who help families build and manage assets are often asked what documents are needed in an estate plan. The following documents create a foundation of an estate plan: an up-to-date will, a durable power of attorney for health care (sometimes called a health care proxy), and an advance health care directive (also known as a living will).

Property transfer clarity. We hear about the disastrous fallouts when celebrities die without wills or other crucial documents in place. Elvis Presley is a famous example, but there are countless others, including James Gandolfini, Whitney Houston and Phillip Seymour Hoffman in the past few years. Who needs that kind of drama?

If you have a valid will, the transfer of assets is much less confusing and difficult. A will tells your executor or personal representative how your assets should be distributed. A will can also state the order in which your heirs should receive these assets—in case funds run out before all of the bequests are fulfilled.

Everyone Needs to Make Time for Estate Planning

Published on: January 1, 2016 | By McCulloch & Miller, PLLC

The only way to make sure that your wishes are carried out after your death is to have the proper estate planning documents prepared in advance, according to a post from WMUR.com, "Money Matters: Common estate planning mistakes." Some people make the mistake of thinking that estate planning will be extremely complicated, while others think it will be far simpler than it ever could be. While every situation is different, there are a number of mistakes that are common at every income and asset level.

Failing to plan. Many of us don't have a will—but like it or not you do have an estate plan. The plan is called the law of your state and the probate judge. If you die without a will, your estate will be divided according to intestacy laws. In that case, there's no guarantee this will be what you wanted. A one-page will or a more complex plan with other strategies like a trust can help reduce estate taxes, save on administrative costs, and put you in the driver's seat when deciding how your assets are to be distributed to your heirs, charities, or to help a family member with special needs. Another important point: in many states a will is the only way that you can name a guardian for your minor children. So, if you move from one state to another, be sure to check local laws.

Failing to maximize your marital estate exemption. The new portability law provisions ease some of the estate tax planning burden by allowing each individual a $5.43 million federal estate tax exemption in 2015. If one spouse dies without using up his or her $5.43 million, the unused portion may be transferred to the other spouse for use at the survivor's death (hence the term "portable."). You should also remember to investigate any state estate taxes when reviewing your strategy and make certain to discuss how portability is elected with your attorney.

Scheduled Court Appearances Vital to Legal Cases

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

An entire $3 million estate of a Texas doctor was awarded to his ex-wife in a recent court ruling. Mrs. Denise Reichert took the oath of independent executrix of the will and estate of Dr. Oscar Reichert.

The judge who presided over the hearing dismissed the contest of will filed by Brandi Reichert, who is the doctor's oldest daughter from his first marriage.

However, Brandi failed to show up in court.

Dementia: Don’t Wait Too Late For Estate Planning

Published on: December 28, 2015 | By McCulloch & Miller, PLLC

It’s very important for individuals who are diagnosed with dementia to appoint a trusted family member or friend to make a commitment to help them make important financial and medical decisions when they no longer can do these tasks. According to an article in Money, "5 Essential Documents for Protecting a Loved One with Dementia," the time to make this assignment is when the person is still mentally competent and has the legal capacity to make sound decisions.

If you delay with the paperwork, your family member's dementia may progress to the point where he or she cannot legally turn over power. At that point, your only option is to petition for guardianship and ask a judge to declare the person incapacitated. That can take about two months and may be expensive. It can get even worse if your loved one—or another family member—contests the application.

Laws vary by state, and mistakes can be costly. You should draft these documents with the help of an experienced elder care attorney. Here are the key documents that are recommended:

Inheritance and Disbarred Attorney Leads to Messy Family Dispute

Published on: October 5, 2015 | By McCulloch & Miller, PLLC

When Fritz Detmer passed away, he left his son, Tols Detmer, an estate worth several hundred thousand dollars. The terms of the will were that Tols was not to get his inheritance until he turned 18.

Now, Tols is 19 and he is suing his own mother, Charlinette Detmer, for hundreds of thousands of dollars he says she improperly received from the estate.

The lawsuit alleges that Charlinette was supposed to receive $60,000 from the estate, but instead the lawyer administering the estate, Peter Capece, gave her $311,000. It is alleged that Capece gave Charlinette this windfall because she knew that Capece was misappropriating money from the estate for his own benefit.

Family Discord Likely When No Will Exists

Published on: September 18, 2015 | By McCulloch & Miller, PLLC

A recent article in Marketwatch’s Moneyologist column, "What to do when a parent dies and leaves no will," starts with a sad example of how families fall apart when the lack of estate planning pits children against each other.

The woman recounts how her father told her and her sister that he was making the sister a signatory on his bank account so that she could pay any bills of his estate out of it. He said that the rest of his estate would be divided equally between them.

Five months later the father passed away without a will.

History Buffs Note: Old Wills Searchable Online

Published on: September 17, 2015 | By McCulloch & Miller, PLLC

Historical wills can offer a window into the past and provide researchers a new perspective on history. Today, old wills for such luminary figures as Herman Melville, Samuel Morse, J.P. Morgan and many other historical figures, can be easily accessed on the web.

The well-known genealogical website, Ancestry.com, spent two and half years scanning 170 million pages of old wills and probate records, and put them in an online database.

While many other countries have previously placed the contents of old wills online, this is a first in the United States on this large of a scale. This development appeared in a recent CNN article, "Paul Revere, J.P. Morgan wills among millions now online."

Scams Continue to Grow: Houston Residents Note Warnings

Published on: September 11, 2015 | By McCulloch & Miller, PLLC

If you had an email account in the 1990s, you were personally selected to help a Nigerian prince recover his rightfully due inheritance. He may have written to you many times, pleading with you for your help and thanking you profusely in advance for your generosity and kindness. Some of us got emails from different princes or members of African royalty who had been forced to flee their countries. The English was broken, but the message was clear – we were special, we had been chosen to help, and in return, we were going to be rich beyond our wildest dreams. We were victims of an attempted scam.

The basic idea behind the scam was that an extremely wealthy person in Nigeria had his accounts frozen or could not transfer money out of the country without help. The scammer either requested that money be sent or that bank account numbers be sent to facilitate the transfer of the scammer's assets for which the person would be rewarded handsomely later.

That this was a scam seems obvious, as why would some wealthy African need the assistance of random Americans? However, everyone knows about the scam because it worked. The scammer just needs one person out of millions to take the bait. That is true with most common scams. Only one person needs to take the bait to make attempting to scam thousands worth the scammer's time.