Trusts

“Sweetheart Wills” for Houston-Area Couples with No Children

Published on: November 25, 2014 | By McCulloch & Miller, PLLC

Recently, I outlined a basic estate plan for a couple with children. Now, a reader in California asks: “What about marrieds without kids?”

Married without children? What essential estate planning tasks should you focus on?

The Wall Street Journal says, in an article titled “Estate Planning for Childless Couples,” that you have two main estate planning tasks: (i) decide what will happen to your property after you die; and (ii) specify the individual who will oversee your medical and financial affairs if you’re unable to do so.

Estate Tax Changes Are Favorable, But Different Worries May Arise

Published on: November 20, 2014 | By McCulloch & Miller, PLLC

State and federal estate and inheritance tax rates are what drive most people’s estate plans, but now that tax rates are falling and exemptions rising in many jurisdictions, how much people will leave their heirs isn’t what keeps them awake at night anymore. What they really worry about is how the money they leave will affect the lives of those who will inherit it.

Are you cheering for the new death tax changes on the horizon, or will you be up all night worrying about the potential downsides to your Houston estate?

So-called “death tax” rates have been the subject of much debate, reform, and repeal over the past 15 years. Some say that repeal will suppress entrepreneurship and economic growth. However, tax rates have been unreliable, so it's hard to use them when looking at a long-term estate plan. A recent Forbesarticle, titled "Estate Planning Fears That Keeps Us Up At Night,"explains what this means.

Houston Families: Don’t Shy Away from Key Estate Planning Questions!

Published on: November 19, 2014 | By McCulloch & Miller, PLLC

Establishing a will is a vital part of protecting your financial legacy and there is no benefit in delaying it. Here are six often-avoided questions to help you get over your fear of wills and establish one for your family.

There are no silly questions when it comes to your Houston estate plans!

A recent Forbes article, titled "6 Questions About Wills You Were Afraid To Ask," gives us some answers to several often-avoided questions to help alleviate some trepidation over wills and to motivate you into creating one for your family. Here are a few of them:

Five Estate Planning “Don’ts” for Houston Families

Published on: November 18, 2014 | By McCulloch & Miller, PLLC

To prevent you and your family members from enduring more stress, misery or confusion than necessary, here are five estate-planning booboos to avoid …

Think you have the right ideas when it comes to your Houston estate? You may want to watch out for some common "don'ts" in the estate planning world.

The Financial Post's recent article, titled "‘Your grandfather’s dead. It’s my money now': Five estate-planning mistakes to avoid," discusses some typical estate planning mistakes.

Get The Latest on Grantor Trusts

Published on: November 17, 2014 | By McCulloch & Miller, PLLC

“Income-tax rates are going up so it becomes more expensive for a grantor to maintain the grantor trust status of a trust they’ve set up,” says Lynn Halpern Lederman, managing director and senior fiduciary counsel – Northeast Region at Bessemer Trust, a New York firm that oversees $97.5 billion.

A Wall Street Journal article, titled "Rethinking Some Grantor Trusts," says that the latest bull market created potentially substantial taxable gains for individuals—and with the top federal rate on long-term capital gains at nearly 24%, as compared to 15% in 2012—there's a concern that some people may have a harder time paying that income tax bill.

How does this affect grantor trusts?

Houston Families: Estate Planning Document List Review

Published on: November 14, 2014 | By McCulloch & Miller, PLLC

A well-planned estate is a wonderful legacy you can leave your heirs — instead of untangling a messy estate, they can follow concrete steps, allowing them to take care of business while mourning their loved one.

Document gathering can be overwhelming when it come to a loved one's passing. What about when you are no longer here? Will your loved ones be able to gather the appropriate information for your estate?

Newsday's recent article, titled "Estate planning: Putting affairs in order before death," lists the basic documents you will need prior to passing away.

Why Should Houston Residents Have a Will?

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

"If you make a will you can distribute the wealth as per your wish and avoid many hassles. It particularly becomes more complicated if there are immovable properties involved and there are disputes on the values of such properties," says Ashish Kehair, EVP and head – private wealth and international businesses, ICICI Securities.

Why do you need a will?

One of the big reasons to make a will is to distribute the wealth as you want and avoid many of the headaches and expenses for your heirs, especially when you have immovable properties and disputes over their value. This caution is discussing in a recent article in The Business Standard titled "Why you should make a will." If there is no will and more than one legal heir, the distribution of assets is conducted by the court under probate law. This can be time-consuming and cumbersome.

Houston Residents: What Can Happen If You Don’t Sign Your Will!

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

The legal dispute surrounding the roughly $200 million estate of the late Charlotte developer Henry Faison has been resolved, with his company winning forgiveness of more than $100 million in loans he’d extended to it.

In this recent court case filed by Faison's sons, Jay and Lane, they asked the court to force Henry's company to allow the assets, including $105 million in loans extended by Faison, to pass to his foundation. The dispute centers on Henry's June 2000 will, which left the residuary of his estate to Faison Enterprises.

Supreme Court Ruling Says IRAs Not Protected from Bankruptcy

Published on: October 30, 2014 | By McCulloch & Miller, PLLC

As a result, financial advisers and families are taking steps to shield IRA assets for children and other beneficiaries in case those heirs ever find themselves in bankruptcy proceedings.

Is your IRA protected from creditors in the event of bankruptcy? Not anymore. Because of the recent unanimous high court decision, experts and families are taking steps to protect IRA assets for beneficiaries in the event those heirs declare bankruptcy.

A recent Wall Street Journalarticle, "Court Ruling Sparks Rush to Shield IRAs," finds that many advisers are urging clients to create a trust as the IRA’s beneficiary, or to set up an IRA as a trust account while the owner is still alive. Either way, the original owner has access to the money before he or she dies. Depending on the type and terms, trusts can shield assets (including an IRA) against creditors.

Pass the Pie: Use Holiday Time to Discuss Estate Planning

Published on: October 29, 2014 | By McCulloch & Miller, PLLC

Thanksgiving weekend is a time to reflect, visit family, and of course, eat your fair share of pie. And while we may be thankful for the people and the wealth in our lives, not enough of us have planned to protect all that we have.

Pass the pie please! And not just the pumpkin pie. How about my slice of the Houston estate? Probably not something you'd really say at your Thanksgiving dinner, but maybe you should.

CBC News in Toronto recently cited a survey that 40 percent of Canadians aged 65 and older felt unprepared about their estate plan. It seems that our good friends to the north are unfortunately much like those of us here in the United States.