Inheritance

Inheritance Problems for Houston Families: Fighting Over “Stuff”

Published on: May 21, 2014 | By McCulloch & Miller, PLLC

Dividing money is easy. But who gets Mom’s tea set?

When we hear about heirs fighting over an inheritance, most of us think about money as being the main issue. But money isn't everything! How you split up priceless family artifacts and other physical goods can start or end fights before they happen. So how do you plan to fairly spread the relics and keep the peace?

Sure, there are many inheritance fights over dollars and cents. On the other hand, there are even more fights leading to protracted probate battles and just plain old hurt feelings over the disposition of physical goods, relics and family keepsakes. Unfortunately, it can be more difficult to plan for the disposition of these “things” in contrast to cash.

Houston Families and Spousal IRA Heirships

Published on: May 2, 2014 | By McCulloch & Miller, PLLC

A spouse who inherits an IRA has a choice. The surviving spouse can move the account into an inherited IRA to keep the tax shelter. Or she can choose to roll the account into her own IRA.

There are some unique rules that go into effect when an IRA is bequeathed and inherited. If a spouse is inheriting the IRA, they have extra leeway that’s worth putting to good use.

The sorts of things an IRA inheriting spouse ought to think about don’t make the headlines quite as often. However, DailyFinance offered a helpful guide a short time ago in an article titled “When A Spouse Inherits An IRA.”

Downsides of Reverse Mortgages for Houston Families

Published on: April 28, 2014 | By McCulloch & Miller, PLLC

Reverse mortgages, which allow homeowners 62 and older to borrow money against the value of their homes that need not be paid back until they move out or die, have long posed pitfalls for older borrowers.

Although a reverse mortgage has some advantages, such as offering a means of cash to make ends meet, the financial community has been quick to point out that there are also some serious pitfalls to these mortgages.

The biggest drawback to bear in mind is that your heirs and loved ones may bear the brunt of the burden when it comes to those drawbacks. It is important to know how reverse mortgages work before you sign up for them. While you are at it, make you’re your heirs and other inheritors know what to expect.

Getting the Biggest Bang in Houston for Your Inherited Property Buck

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

Perhaps the more important detail of this story is that the home was sold in an estate sale by heirs who appear to have let the property go for considerably less than market value.

Inherited property brings with it certain important responsibilities, and that goes double and triple for executors or trustees. The gifted property can be an immense gift and boon to your future. Even if it’s not going to be a home to live in and is just an asset to sell, what a windfall it can be!

There are all sorts of liabilities, insurances, and special transactions that might become important when a piece of real property is at stake. However, foremost at issue for heirs is selling it at the right value. Indeed, responsibility for understanding the real estate market or knowing whom to trust when selling real estate is something an heir takes on.

Heirlooms Encompass Memories for Houston Families

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

Time, it seems, has healed past wounds enough to leave us remembering Grandpa Oscar with a smile. Very belatedly the violin has served its purpose. We can hold on to the memories and let go of the object.

Family heirlooms seem to have special powers over the family. Memories and story-telling often result in the discussions of an inherited object. As one sitting down to put your intentions to paper, or even as the inheritor, it is a power worth pondering.

There are always the goals and intentions of the planning parent, of course. Nevertheless, more often than not, it is the family that sees the peculiar power of an heirloom. Maybe it is something well-loved and fought over, or the heirloom may simply provide the tinder to which a disgruntled heir may choose to set match and light a fire.

Is An Inheritance Helpful Or Hurtful For Houston Families?

Published on: March 24, 2014 | By McCulloch & Miller, PLLC

One of the most common themes among my affluent clients is a desire to see their children make it on their own. Over 90% of these clients are first-generation wealth builders, meaning they didn’t inherit their money but accumulated it from saving, investing or building a business. They value hard work and frugality and feel leaving a large inheritance to a child is more hurtful than helpful.

When it comes to planning for one's estate, most children assume their parents will leave it all to them. Is that really in the cards?

A recent Forbes article takes a different tack and asks “Why Bother Leaving an Inheritance for the Kids?”

The Boomer Inheritance Boomerang May Impact Houston Families

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

For heirs, the emotions that come with sudden wealth can be a mix of guilt, loss, anger, regret, relief and hurt, perhaps stewed with long-simmering family rivalries and resentments.

Much of estate planning focuses on the technical aspects of leaving behind or receiving an inheritance. Commonly, these include the tax questions, the legal questions, and the nitty-gritty details. In the midst of all of the numbers and code sections, it is easy to overlook the very emotional nature of inheritance itself.

Indeed, the Boomers of today are experiencing an unprecedented period of wealth transfer. What does it mean for a Boomer to inherit these days? The New York Times approached the subject a short time ago in an article titled “When Boomers Inherit, Complications May Follow.”

Unequal Inheritances: How Do Houston Families Slice the Pie?

Published on: March 7, 2014 | By McCulloch & Miller, PLLC

Advisors say it doesn’t happen often, but parents who divide their assets unevenly are playing with fire. That said, there are things they can do to try to keep the fire under control, so it doesn’t become a conflagration that blows the family up.

Sometimes it is easy to split up your assets like pieces of the pie, with equal pieces for everyone. Sometimes, the assets just do not split that way or maybe you do not want to split them equally. For those who receive something less than equal, they may feel spurned or sense favoritism.

How do you split your estate unevenly and still keep the peace in the family or, at the very least, keep it out of the courts?

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.”

Inheritance Planning On Both Sides

Published on: January 7, 2014 | By McCulloch & Miller, PLLC

"You cannot predict what may happen between now and receiving an inheritance," said Ireland. "The earlier you start preparing, the more financially secure your own retirement is likely to be."

Planning for an inheritance can be a tricky endeavor, for both givers and receivers. On one side, the giver has to make appropriate arrangements for their estate in order to fulfill their wishes and bequests. And on the other side, the future heirs have to consider how they intend to handle their gifts. Both need to be prepared if there is an unforeseen change of plans.

According to a recent CNN Money article titled “Average American inheritance: $177,000,” it is a tale of two facts: