Houston Probate

The Texas Probate Process and How to Avoid It

Published on: May 4, 2020 | By McCulloch & Miller, PLLC

When discussing Houston estate planning, there are likely to be many unfamiliar terms. Among these terms is the concept of “probate.” Probate is the part of the process by which assets are transferred after death, and specifically refers to the validation of a person’s will. However, the probate process is often lengthy and costly, and is also public.

To better conceptualize what probate is, it helps to have an understanding of the basics of Houston estate planning, starting with wills. Quite simply, a will is a document in which someone outlines how they want their property distributed upon their death. Those who pass away without a will are said to have died “intestate.” In such cases, state law will dictate how their property is passed on to their successors. Of course, the Texas intestate laws are generic and not customized to anyone’s individual needs. Thus, those who wish to maintain control over their assets typically create a will.

When someone with a will dies, that person’s will must be presented to the probate court within four years. If a will is not filed within that time, then the state’s intestacy laws will likely be used to distribute the decedent’s assets. However, if a will is timely presented, the probate court will officially acknowledge the person’s death, oversee payment of their remaining debts, and distribute their assets according to the terms of the will.

What To Do If Additional Assets Discovered After Estate Taxes Have Been Filed

Published on: April 21, 2016 | By McCulloch & Miller, PLLC

Here's an ethical dilemma. You learn that your late mother had a safe with $100,000 cash in it after the estate has been finalized. Do you pocket the cash and tell no one, or add it to her assets? The temptation is obvious, but the right and legal thing to do is correct the error.

New Jersey 101.5 says in its recent article, "Why it's important for executors to report all estate assets," that the executor of an estate must prepare and file the necessary returns. In doing this, he or she has to collect, value and report all of the assets of the estate.

If a failure to include the cash in the inventory of the estate assets keeps the estate below the reporting threshold and no return was filed, the unpaid tax on the cash will accrue interest. Plus, the estate and executor may be subject to penalties for nonpayment, as well as facing civil and criminal penalties if this failure to file is deemed fraudulent.

Every Houston Family Needs Estate Planning, Especially When It’s Complicated

Published on: April 13, 2016 | By McCulloch & Miller, PLLC

A will is the best known estate planning document; it provides instructions about how to distribute your assets after death. There are many different kinds of trusts, and whether you need one or more than one is best determined with the help of an experienced estate planning attorney.

There is no simple estate—everybody has complexity, says The (Eugene, OR) Register-Guard article "Wills, trusts, big decisions." The basic questions are whether: (i) you're married; (ii) you have children, or children from multiple marriages or step-children; and (iii) there's real estate you own outside of the state. The larger the estate, the more questions there will be about how best to distribute the assets.

If it is a one-time married family, an estate-planning attorney can provide for financial assets to go straight to the children without probate administration in many cases. But things can be more complicated with blended families. There may be one spouse with children by a prior marriage and children from a subsequent marriage. If that is the case, then you may want to be sure that the children by the first marriage will be treated the same when the surviving spouse will have control of all of the assets.

Spring Cleaning? Don’t Forget Your Houston Estate Plan

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

Throw open your windows, put the screens back in and get ready for more outdoor time, whether that means gardening or walks in the park. While you are at it, refresh your estate plan. If it has been three years or more since you last had it reviewed, it is time. This is especially true if your family has experienced any life changes, like marriages, births, deaths or divorce.

Many folks think they don't need estate planning because they don't have enough money for that, or they own everything jointly, says a recent article from CBS Boston, "Spring Cleaning: Estate Planning."

So why bother with a will? What happens when you both die? What if you have kids? Who is going to care for them if you pass away? Do you have things that you would want friends or family to have?

Life Changes in Houston? Check Your Life Insurance

Published on: April 6, 2016 | By McCulloch & Miller, PLLC

In "3 ways to choose the right life insurance plan," the New York Daily News invites readers to consider how their lives have changed over the decades, and how their insurance should change too.

Young adults have some pretty straightforward insurance needs like obtaining insurance for their first car, insuring that special engagement ring or shopping for rental insurance for that first apartment. As we get older, our needs in life and in insurance change. Saving for a down payment on the first house, college tuition for the kids, and then down the road, retirement become new priorities. And many of us will be faced with unexpected events, like illness or death of a loved one, divorce or a spouse who is forced to retire prematurely.

Make adjustments. Life insurance is an important financial tool that should never be a "set it and forget it" plan. For example, a couple has life insurance policies on which they're continuing to pay premium payments and then the husband passes away. Depending on the death benefit and her level of concern for their children's financial state, it is possible that the wife does not need to keep her life insurance policy. She could put the dollars she was paying for insurance premiums in her pocket for her desired benefit. Also, many companies have employer-sponsored life insurance plans for their employees that cover about three years of salary. Depending on the level of coverage, you might consider purchasing additional insurance outside of your employer.

Wealthy Family Goes Public With Estate Battle

Published on: March 25, 2016 | By McCulloch & Miller, PLLC

Facebook has become the source of revolutions, personal journeys, and now, estate battles. When one of America's most admired art collectors passed away last year, she had an estate plan in place. Her husband of 14 years apparently didn't like the terms and is challenging the will. Her adult children from her first marriage are furious, and one is very publicly sharing his anger and disgust on Facebook.

The New York Post Page Six reports in "Melva Bucksbaum's $100M estate battle rages on Facebook" that the battle began when Melva, a former trustee of the Whitney Museum, died at 82 last year. Her husband Raymond Learsy—a trader, developer, and fellow Whitney board member—challenged her will and claims he's entitled to half her fortune, which is worth more than $100 million.

The action infuriated Melva's adult children, Gene and Glenn Bucksbaum and Mary Bucksbaum Scanlan. Glenn says that Learsy schemed to seize the family millions. He wrote on his public Facebook page, "Raymond Learsy…This name should be known. Full definition of cad. 1: An omnibus conductor 2: a man who acts with deliberate disregard for another's feelings or rights."

Beneficiary Designations: Do You Know Who’s Who in Houston?

Published on: March 21, 2016 | By McCulloch & Miller, PLLC

If you don't remember who your beneficiaries are for your investment accounts, insurance policies or annuity contracts, then you need to carve out some time to go through your accounts and see who you named as your beneficiary. If it's been a while, you may be in for a rude awakening.

Beneficiary designations allow certain assets owned by an individual to transfer efficiently at her or his passing. These include retirement accounts like IRAs, Roth IRAs, 401(k)s, 403(b)s, 457(b)s, and pensions, as well as life insurance death benefits and the residual value of annuities.

These types of assets with designated beneficiaries will transfer automatically, despite anything written to the contrary in a person's will or trust. These assets with designated beneficiaries are also excluded from the decedent's probate estate unless the "estate" is the designated beneficiary.

Farming Future Depends on Planning Now

Published on: March 15, 2016 | By McCulloch & Miller, PLLC

Regardless of the ultimate outcome – passing the farm to the next generation or selling it – creating a plan for the future requires a lot of groundwork and the help of an estate planning attorney with experience in family farm matters, according to The High Plains/Midwest Ag Journal's article, "Planning for the future of your farm operation."

A business plan can be an important tool in estate and succession planning. This is a roadmap for the farm business, and it gives your business direction, helps you make decisions, and can assist in the future.

Make sure that you have the terminology correct. "Estate planning" deals with the disposition of your assets during your lifetime or after your death, while a succession plan is the transitioning of your farm to the next generation or others to ensure the continuation of the business.

Checklist Serves as End-of-Life Care

Published on: February 25, 2016 | By McCulloch & Miller, PLLC

For a generation that is proud of their ability to ignore all kinds of taboos, millennials are no different than any other generation when it comes to discussing end-of-life care and estate planning with their parents. It's up to you, Baby Boomers, to initiate the conversation with your millennial children and make sure that they – and you – understand the basic documents needed for estate planning and end-of-life care.

Benzinga's recent article, "Millennials and Estate Planning: How to Get Started," says that when you do begin discussing end-of-life care, you need to understand the documents involved.

Here is a list:

New Life Event? Review Your Houston Estate Plan

Published on: February 22, 2016 | By McCulloch & Miller, PLLC

From the following Forbes article, "8 Reasons to Revise Your Estate Plan Today," we learn that 51% of Americans age 55 – 64 don't have a Will. That's bad news for their families, who will have to deal with the estate plan default: whatever the rules are for their state. But for those who are smart enough to have an estate plan in place, there are still some maintenance issues that need to be addressed with a review every now and then. Everything changes over time, including your personal and financial situations and tax and estate planning laws.

Even if your estate plan was crafted by a skilled and experienced estate planning attorney, you'll want to talk to him or her if any of these things occur:

Marriage or Re-marriage. This doesn't automatically change the provisions of your will or trust and won't necessarily provide for your new spouse. Talk with your attorney to ensure your plan reflects your new goals, both individually and as a couple.