Inheritance

Houston Family’s New to Estate Planning? See Helpful Guide

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

Whether you want to provide for your family after your death or you just want to ensure that the process is as easy as possible for your family, estate planning is the easiest way to accomplish your goals.

What exactly is estate planning? Are you unsure of where to begin?

“Estate planning is simply the fancy legal term for deciding what to do with your stuff after you are gone,” according to The Cheat Sheet article titled “A Beginner’s Guide to Estate Planning.” Although no one really likes to talk about dying and what will happen when they die, it’s important to start planning. You really want to start your estate planning now while you are still living (of course!) and in sound mental and physical health. Planning allows you to choose what happens to your assets and prized possessions instead of a relative, friend—or worse—the probate court. With some basic estate planning, you can ease the burden on your loved ones of dealing with your estate.

Important Documents For Houston Families: Before Dementia Strikes

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

Accounting for the possibility of your own and your loved one’s eventual mental incapacity is a key part of any estate plan. If your loved one appears to be showing signs of diminishing mental acuity, ask if he or she has the proper documents in place. If so, find out who his or her agent(s) are so that you can alert them.

What if you or a loved one develops dementia? If you didn’t have the mental capacity to take care of yourself or your finances at some point, what would happen? You need to be prepared.

A recent articlein Physician’s Monthly Digest, titled “Dealing With a Loved One’s Cognitive Decline Is Simpler with Right Legal Documents in Place,”says that a healthcare proxy and a durable power of attorney are key legal documents to have before there are any signs of mental incapacitation. The documents allow you to designate another person to make medical and financial decisions on your behalf once you are unable to do so. This can be your spouse, an adult child, a friend, or a trusted adviser. Without a power of attorney, your spouse will need a court order to access any non-joint accounts that you have.

Farming and Other Property Tax Breaks May Net Good Yields for Your Houston Estate Plan

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

People who own as little as three acres and engage in agricultural practices such as hay harvesting, bee keeping, chicken raising, and designating land for grazing animals may find themselves rewarded by localities with an enormous discount of up to 95 percent on property taxes. This tax break — available in all states except Michigan — has made for some surprising members of the nation’s farming community. Consider Malcolm S. Forbes Jr., Jon Bon Jovi, and former New Jersey Gov. Christie Whitman, among many other famous business folk, celebrities, and politicians with a sideline in farming.

While most tax breaks for landowners occur in a single year, according to a recent Barron’s article, property-tax discounts awarded for agricultural activities are “reaped” annually, just like soy beans, corn, and alfalfa. Barron’s talks about these land tax breaks and more in an article titled “A Harvest of Land-Related Tax Breaks.”

Taxpayers using their land to grow timber can find benefits beyond the property-tax break: Timberland is great for wealth preservation. Even when land values or the demand for timber tails off, the trees on your farm continue to grow. Experts say that timber growth can provide an annual return of roughly 2 percent to 6 percent a year, and once you sell your timber, your profits are taxed as capital-gains, instead of higher income tax rates. It’s only when you manufacture products like pulp or poles from your timber crop that income tax will apply.

Houston Estates Can Be Subject to Same Discord as Celebrity Estates

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

Ernie Banks died on January 23rd at age 83 from a heart condition. Interestingly, his death certificate listed dementia as a “significant condition contributing” to his death. Why is that important? Well, three months before he died, Banks signed a new set of estate planning documents, including a power of attorney, healthcare directive, new will, and a trust.

Ernie Banks signed a new set of estate planning documents that left his caregiver and talent agent, Regina Rice, in control of everything. This new will and trust totally left out his family members and named Rice as his sole beneficiary. Rice would stand to inherit not only whatever assets and wealth Ernie Banks accumulated during his life, but the right to control (and profit from) his name, likeness, and image.

Since Banks had dementia and made these changes a mere three months before his death, his children are planning to take Rice to court over Banks’ estate. Houston families should make note of family dynamics that could place estate planning in jeopardy.

Multimillion Dollar Estates Can Be Subject of Family Feuds

Published on: March 10, 2015 | By McCulloch & Miller, PLLC

Dr. Richard Grossman amassed his fortune as the founder of the Grossman Burn Center in Los Angeles, one of the first to use a hyperbaric chamber to prevent infections in burn victims and speed their recovery. He retired from his medical practice in 2013. Lawyers for his children and widow now disagree on what Grossman intended to do with that wealth before he died.

If you aren’t crystal clear on your wishes in your Houston estate planning documents, you may leave behind much speculation after you pass.

A recent article in the Thousand Oaks (CA) Acorn, titled “Battle over Grossman estate intensifies,” describes the contentious fight over a noted physician’s estate between his wife and his children from a previous marriage. With all of the assets going to the wife, the children assert that the doctor had advanced dementia and wasn’t able to make his own decisions.

Should Houston Family’s Care About Marlon Brando’s Estate?

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

In part due to questions about his true intentions as expressed in his will and trust, Brando’s estate was involved in more than two dozens lawsuits by 2009 — five years after his death. He passed away on July 1, 2004, at 80 years of age, suffering from a host of ailments including dementia and lung failure.

Marlon Brando once said “The only thing an actor owes his public is not to bore them.” Ironically, the public hasn’t been bored one bit since Brando’s passing as issues over his estate have made many headlines.

Right before his death eleven years ago, Marlon Brando couldn’t leave his bedroom and was so paranoid that he wanted the room padlocked at his death so no one would steal the buttons off of his shirt!

Your Houston Estate Plan Check Up

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

Once the basic documents are in place, they should be revisited periodically. If there is a major change in your circumstances- good or bad, your attorney should know.

How are those New Year’s Resolutions coming along for your finances and estate plan?

Fox News recently posted some tips in an article titled “Is it time for your legal checkup?”The article advises that a will is a great starting point, even if you’re young and healthy. Once we have children, another important part of estate planning is designating a guardian who will rear your children if something unforeseen happens. It’s also important to decide the ages at which your kids should inherit assets. You should discuss all of this with your estate planning attorney: allowing the trustee to have the discretion as to how, whether, and when to make distributions can protect immature or young beneficiaries. This will also keep these assets from counting against a young person’s college financial aid applications.

Financial and Estate Planning Houston Parents

Published on: March 3, 2015 | By McCulloch & Miller, PLLC

While not all encompassing, these guides serve as a starting point to help your parents. There are many family dynamics at play when these types of planning conversations arise, so you need to be cognizant of patterns and relationships. Starting earlier will reap dividends for everyone; delaying these conversations can cause more anxiety and tension.

Do your parents have all of their financial and estate plans in order? How do you have “the talk” without causing hurt feelings?

A recent article in The (Manchester, NH) Union-Leader, titled “Helping parents navigate their finances as they get older,” recommends a proactive approach as the best way to broach this delicate subject. Starting the conversation can be difficult for some, but waiting can cause even more headaches. For example, there are an increasing number of scams targeting our seniors. You want to be ahead of the curve to protect their nest egg and your time.

Blending Families? Estate Planning a Must for Houston Families

Published on: February 25, 2015 | By McCulloch & Miller, PLLC

Blended families without a proper estate plan for wealth transfer could run into additional obstacles not observed by traditional families.

For example, state inheritance rules, intestate laws, and conflicts in beneficiary designations could be inconsistent with the will. In addition, a disinheritance of new family members without the knowledge of the entire family can cause emotional friction between the surviving family members.

There have been some laws enacted that have changed how beneficiary designations are handled, so make sure your estate plan is in sync with your retirement accounts. Do this because those beneficiary designations generally supersede what is directed in your will.

Lessons Learned from Robin Williams’ Estate Battle

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

There’s barely a person over the age of 40 or so who does not come with a family squabble about, well, things following the death of a well-loved parent, grandparent, or family friend. Even Robin Williams, who planned his estate well, could not avoid a family feud after his passing.

Sadly, it’s true. In just four months after the comedian’s death, litigation has begun between Williams’ three children and his third wife. Even a well-thought plan can be challenged by those you leave behind.

The recent slate.com article, titled “Robin Williams’ Family Is Like Yours” says that a good talk with the family is the best way to avoid post-death struggles over your estate after you pass away. Sit down with your loved ones and tell them about your will, and how you’d like to see your belongings divided up. Convey some life values while you’re at it. You can even ask for their input.