Transfer on Death

One Dozen Must-Have Documents

Published on: November 6, 2018 | By McCulloch & Miller, PLLC

To make sure that your wishes are carried out, you’ll have to do your homework. Make sure that you cover these most important documents.

The last thing you want to do, is leave a bureaucratic mess for your loved ones when you die. Not only will it cause the family stress during a difficult time, it could change how your family thinks of you. That should be more than enough reason to get this done in advance!

US News & World Report’s recent article, “12 Documents to Prepare Now for Your Heirs,” says that when people don't have their paperwork ready, it can be a huge headache for the family. A family can be left with all kinds of paperwork to sort out while dealing with grief. Even worse, heirs may forfeit life insurance proceeds and tax deductions or overlook accounts they don't know exist. That's why it's critical to have important documents ready for loved ones. Here are the documents you should start preparing right away:

Proper Planning for the Distribution of an IRA

Published on: April 10, 2018 | By McCulloch & Miller, PLLC

The rules for IRA distributions can be complicated. Unforeseen circumstances can make things even more complex. Understand the rules, so the money goes where you want it to.

What happens if you designate each of your two adult children as 50/50 beneficiaries of your IRA, and then one of them dies? Will the funds go to your grandchildren?

MarketWatch answered that question in its article, “Who gets your IRA when you die? It’s not so simple.” The answer to what happens to the IRA money is dependent upon what the beneficiary designations say and when one of the children passes away. The beneficiary designations state how it will be distributed. However, that may not be what is written in your will.

Will Your Reward Points Transfer to Houston Heirs?

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

Most of us never look twice at the fine print of the frequent flier rewards program’s terms and conditions. The type is so small and there’s so much of it … but if you did, you’d probably see language stating that any accumulated points are not transferrable on death. Some heirs have found that having the right documents and asking nicely can lead to an unexpected result.

If you fly the same route frequently, it pays to use the same airline and sign up for the airline’s rewards program. The accrued points can lead to great deals, reduce your airfare costs and for the real road warrior, generate enough rewards for free trips. There’s real value in these kinds of programs for the frequent flier.

Nevertheless, not everyone uses his or her accumulated point balance before passing away. Since the accumulated points do have a real market value, the question then becomes whether or not they are part of a decedent's estate.