Trusts and Estates

Distributing Houston Estate Among the Kids – Who Gets What?

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

In the book The Charles Schwab Guide to Finances After 50, author Carrie Schwab-Pomerantz poses the following scenario: “I’m confused about how to divide my estate between my children, who have different needs and financial resources. Is it best to divide it into equal parts?”

This question is directed at people who have children at different levels of personal and financial success, according to a recent Millionaire Corner’s article titled “Dividing the Estate: Treat Your Children Well.”It suggests that the parent in this scenario may want to do more for the struggling child than for the successful one as far as designating heirs for their estate assets.

The original explains that it makes sense for parents to treat their children equally. While one may think about providing extra assistance to a child with fewer resources, or for a child with special needs, you need to do so cautiously. The article also reminds us that the status of the children can change over time, making a strong argument for equal distribution.

Houston Families Can Explore Advantages of Charitable Giving

Published on: March 31, 2015 | By McCulloch & Miller, PLLC

Lifetime gifts may carry considerable advantages over charitable bequests, according to Atlantic Trust, the U.S. private wealth management division of CIBC (NYSE: CM) (TSX: CM).

Lifetime gifting allows you to see your donation make a difference. In addition to this giving advantage, there’s also the goals of receiving an income tax deduction or estate tax savings, explains the PR Newswire article titled “Benefits of lifetime charitable gifts can outweigh bequests.”

For instance, individuals who give cash to public charity typically are entitled to an income tax deduction of up to 50 percent of their adjusted gross income (AGI) or up to 30 percent of their AGI for donations of other appreciated assets that are held for at least a year. What’s more, these deductions can be carried forward for up to five years if they can’t be taken in the year the gift was made.

Should a Trust Last 360 Years? Several Mississippians Think So

Published on: March 30, 2015 | By McCulloch & Miller, PLLC

Legislation allowing Mississippians to place their assets in a trust for up to 360 years passed the state House and is now pending before Gov. Phil Bryant.

How long should a trust really last?

According to the Northeast Mississippi Daily Journal, Mississippi’s House Judiciary Chair Mark Barker said many states were passing laws allowing for the establishments of trusts for 360 years or longer. He also commented that this is actually the process already since there are loopholes in the existing state rules against perpetuities.

Plans to Secure Your Children’s Future

Published on: March 27, 2015 | By McCulloch & Miller, PLLC

Although it is a difficult subject to face, you have options when it comes to protecting your estate and your family. The steps you take now can help prevent the wrong people from making decisions for your loved ones.

If you have minor children, who will take care of them in the event of your passing? Although no one likes to think about this, it is crucial that you make a plan for your Houston family.

A recent article from Military.com, titled “Protect Your Children's Future,”offers some ideas on how to protect your children. For starters, make sure to you have a will drafted by an experienced estate planning attorney. Be sure to name one or more people to be the legal guardian of any of your children you may have under age 18. [Note: In some states, like California, a will is not the only way to appoint such a guardian. Be sure to consult with an experienced estate planning attorney in your own state.]

Estate Planning in a Virtual World for Houston Planners

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

Roos said it’s important that people plan ahead and put “someone in charge of these digital assets and giving the family the opportunity to take over accounts if something were to happen, so they can control the information so it doesn’t get into the wrong hands.”

Have you heard the buzz about digital estate planning? For those with online accounts—this includes online bank accounts, social media accounts, and photography accounts—these are part of your digital estate. And just like your physical assets, your digital assets need protection too.

A recent kcra.com report, titled Have you planned your digital afterlife?, reminds us that a digital estate can cause real headaches for grieving loved ones who may be attempting to access those accounts. The report recommends that people write down their passwords and make sure their trusted relatives will have access.

“Downton Abbey” — A Good Lesson for Houston Families

Published on: March 24, 2015 | By McCulloch & Miller, PLLC

The viewers of this high-end PBS costume drama, which takes place about a century ago, could very likely be your clients' demographic. Look at who's a top corporate sponsor: Viking River Cruises, which told The New York Times that “our demographic is affluent Baby Boomers 55+.” It's a big group: more than 10.1 million viewers watched the first episode of the fifth season in early January. Look closely and see if Downton can impart valuable financial lessons to you.

It can be difficult to explain to clients the ramifications of putting off their estate planning. Sometimes people have to “see it to believe it,” so to speak. Enter PBS hit series, Downton Abbey.

Downton Abbey follows the lives of the fictitious Crawley family who live in a grand English country house in the early 1900s. Downton’s characters can teach some valuable financial lessons, according to AccountingWEB’s recent post titled, “8 Lessons You and Your Clients Learn by Watching Downton Abbey.

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.

Yes. YOU Do Need Estate Planning!

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

Have you thought about dying lately? Most of us don't. Make sure you do some estate planning today before things get complicated.

End-of-life planning is not a fun topic to think about. Nobody wants to think about passing away, but is that going to change the inevitable? Not a chance.

A recent article in The Huffington Post, titled “Why We Avoid Estate Planning,”gives us reasons most of us avoid estate planning:

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.