Trusts

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.

Elder Abuse Accusation in DJ Casey Kasem’s Estate Feud

Published on: February 26, 2015 | By McCulloch & Miller, PLLC

"Detectives are still actively investigating the elder abuse case," LAPD spokesperson Jane Kimtold THR. "They want to be as thorough as possible before a case is presented to the DA's office."

The hits just keep coming in DJ Casey Kasem’s estate battle.

The Hollywood Reporter quoted private investigator Logan Clarke in its recent article titled Casey Kasem's Daughter Demands LAPD Arrest Widow for Elder Abuse. "

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.

Houston Families: Money-Makers (or Money-Savers) for NOW

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

Here are money tasks to do this week that will help 2015 be more prosperous. Most can be done in about an hour.

As reported in a Chicago News Service article titled “Got an hour? Tackle these money tasks,” a recent survey from the National Endowment for Financial Education found 64 percent of U.S. adults will make a financially focused goal in 2015. The article also notes that in making those goals, you should be specific and make individual tasks to keep the job manageable.

The first question you might ask is “Where the heck do you get the money to fund these goals?”

High Wage Earners in Houston Should Mind Tax Tips

Published on: February 16, 2015 | By McCulloch & Miller, PLLC

There is less emphasis on estate taxes because the exemption—$5.43 million per person—is so high now. But income taxes are higher, so know what you are in for.

Maybe the estate tax doesn’t apply to you, but what about rising income taxes? How should you plan accordingly?

According to a recent post on cnbc.com, titled Tax planning tips for high-income earners,” tax planning is better done looking ahead three or five years. If you see a trend, such as an increase or reduction in income, you can alter your deductions or deferrals.

Can You Get Out of Dodge?

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

One attorney calls it the "Get out of Dodge plan"—the best way to keep your assets intact before applying for Medicaid to cover nursing home costs. New Jersey is one of the most restrictive states when it comes to permitting residents to preserve assets for their benefit while Medicaid pays for nursing home care. In the Garden State, there are steps that should be taken before applying for Medicaid, the government insurance program for people of all ages who are too poor to afford health care including long-stay nursing home care. Nursing homes can cost $120,000 a year in New Jersey, sometimes more.

Even though Medicaid is a federal program that's regulated by each state, the way in which the money is distributed can vary. Restrictive states are siding with protecting public money over letting individuals and their spouses keep assets, the Asbury Park Press article titled "Protecting assets: Three things to know before Medicaid" explains. So your retirement strategy can be quite different based upon your state of residence. Not everyone can Get Out of Dodge, meaning not everyone can move into a second home in Florida.

But do-it-yourself planning may not be the way to go. Elder law and Medicaid planning is constantly changing, and your assets can easily be wiped out by nursing home costs without careful planning. For example, when a husband places his wife in a nursing home, their home may be excluded from assets that must be spent for nursing home care before Medicaid pays for it. So the husband is still able to live there. However, if the husband dies before the wife enters the nursing home, it gets complicated: the house could be lost to the nursing home for the cost of her care.