Tax Planning

Tell Your Houston Family Your Estate Planning Goals

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

What can you do to push past the emotional aspects of estate planning to make sure your surviving family members can successfully deal with issues that may arise after you pass away?

Start early. Patrick Severo is the senior vice president and financial advisor at RBC Wealth Management. He also has three kids and knew he needed a plan to take care of them after he is gone. Severo recently told Forbes in the article titled, “Don't Let Emotion Sabotage Your Estate Plan,”that, although the discussion about what happens after you pass away feels uncomfortable, the earlier you can begin, the better off you’ll be because these things take time – maybe even years!

To help the people you care about handle the financial, administrative and familial consequences of your eventual passing, be as transparent as possible about what they can expect from your estate. Mismatched expectations can often cause trouble that could’ve easily been avoided if the news wasn’t coming as such a surprise.

You’re Getting Married? Is Your Estate Plan Current?

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

At some point, everyone needs to consider estate planning. It’s time to create an up-to-date estate plan when you experience one of these life events.

Think estate planning isn’t for you? Think again! And it’s not just a one-time deal; changes in your life should result in changes to your plan, so be ready to make some updates.

The Richland Source notes in a recent article, titled “Do you need an estate plan?”, that it’s time to create an up-to-date estate plan when you have one of these life events:

Pre-Retirement To-Do’s for Houston Boomers

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

Don’t wait until the very last minute to make sure you are prepared, says Michael H. Milarski, a partner and senior financial advisor with Signature Financial Planning.

Have you checked your list and you’re sure you’re ready to retire? You may have a few items to address before your golden years can begin.

A recent Fox Business article, titled “5 Things to Do Now if You’re Near Retirement,”says that these are the five important things to work on in the five years before you retire.

Time to Review Your Houston Estate Plan: 4 Key Dates

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

So how do you know if your estate plan is out-of-date? If your will or trust predates these four key “freshness dates,” it may be time to visit your attorney for a review.

Estate plans are not meant to be a one-time deal. If life changes – or the law changes – you need to update your plan accordingly.

The website nextavenue.org recently posted a very informative article, titled “Why Your Will May Be Out of Date,” which states that although your estate planning documents are still valid, they may no longer work the way you originally thought they would.

Crummey Trusts: Viable Tool for Houston Families?

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

Actually the trusts are Crummey trusts named after one D. Clifford Crummey who won a decision in the Ninth Circuit in 1968, when I was just a high school lad. Israel and Erna Mikel were just in Tax Court showing how powerful the Crummey power can be as they used it to shelter over $1.4 million in transfers to their family trust from gift taxes. An arbitration clause that called for the use of a religious court caused the IRS to challenge the validity of the exclusions, but the Tax Court ruled in the taxpayer’s favor.

Trusts can have pretty funny names. Take the Crummey trust for example – doesn’t sound very good, does it? Who wants a “crumby” trust? Let’s explore this tool further.

A recent Forbes article, titled “Religious Arbitration Clause Does Not Hurt Million Plus Gift Tax Exclusion,” reminds us that there’s an annual exclusion from gift tax. Reminder: every year you can give the annual exclusion amount ($14,000 this year) to as many people as you want without any gift taxes or disturbing the unified credit against transfer taxes. However, to qualify for the exclusion, the gift has to be of a “present interest”.

Inheritance: Later vs. Giving Now?

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

Most of us don’t want to just enjoy our retirement and have enough money for old age, but to leave something behind as well. But what's the best way to do that? Should you leave an inheritance, or give your money away while you're still around?

Let’s take a look at the tax implications of both scenarios.

A recent MarketWatch article, titled “Why it’s better to give than to bequeath,”reminds us that with both gifts and inheritances, it’s the person giving the money who pays the tax. So, for example, if you give a gift or an inheritance to your children, they don’t pay taxes—it will be your estate that has the tax liability and must pay. However, there are huge tax differences between gifts and inheritances. The gift tax is exclusive: it’s on top of the gift.

South Texas’ “Godfather of Movies” Still Making Headlines in Contested Will

Published on: May 20, 2015 | By McCulloch & Miller, PLLC

Rubin Frels is considered by some as the "godfather of movies in South Texas." Although he has been dead for almost a year, the prominent Victoria businessman's estate is still being legally contested by two of his longtime associates, Brad Richards and Gary Dunnam.

The Victoria (TX) Advocate has reported all of the details in its article titled“Prominent Victoria businessman's will contested.”

Dunnam, who knew Frels since at least 1971, says the 2001 will is valid. He also claimed Richards, who was Frels' partner of 15 years, isolated Frels from his friends.

5 Estate Planning Must-Haves for Houston Singles

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

"Everyone of majority age needs at the least a will, a health care directive and a named power of attorney," says Mike Sena, a certified financial planner with White Street Advisors, a money management firm. "The express purpose of estate planning is to make things as easy, as inexpensive and as simple as required for loved ones, friends and associates left behind. Every situation, every life is unique and some of us need more than others when it comes to estate planning."

Say that again. Everyone needs estate planning? Even singles?

You got it. But what estate planning items do Houston singles need the most?

Tips for Leaving an Inheritance for Houston Families

Published on: May 15, 2015 | By McCulloch & Miller, PLLC

Few people get excited about doing estate planning, even though they might recognize the importance of leaving a legacy for their children and grandchildren. If you want to be smart about making gifts to your loved ones, though, there are some things you should consider before just writing a check.

When leaving a legacy to your Houston heirs, you want to do it the right way. It’s always best to consult with the pros on important estate planning matters.

A recent article from The Motley Fool, titled “Thinking of Gifting an Inheritance to Your Grandchildren? Keep These 3 Things in Mind,” asks some of their experts for estate planning tips. Here are some of their answers:

Team Houston: Who Are Your Estate Planning Team Mates?

Published on: May 12, 2015 | By McCulloch & Miller, PLLC

If a Loved One or you have an estate plan, or even part of one, then some team members already are on board via the planning process and likely are actively serving or are nominated in the documents. They can have roles in the testamentary will, trusts, business purchase agreement, powers of attorney, medical directives or any of the other estate-planning instruments created during life.

Some team members are fee-based professionals, while others can be volunteers. In many instances, not all of the specialties will be required. Your estate planning team should consist of the combination of members that best suits your situation.

The Myrtle Beach (FL) Sun News recently published an article titled “Assembling your team for estate management”which reminds us that one person or a firm can serve in more than one fiduciary or team-member role.