Trusts

Houston Estate Planning Step 1: Identify Your Assets

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

Your first step? Take stock of all your assets. These include your investments, retirement accounts, insurance policies, real estate and any business interests.

According to CNN Money's "Identifying your assets" (i.e., part of its Money Essentials Series), a good first step for estate planning is to review and inventory all of your assets. This includes your investments, pensions, retirement accounts, life insurance policies, real estate, and businesses. While you are at it, be sure to categorize your important papers, like birth and marriage certificates, Social Security cards, insurance policy numbers and current statements, and mortgage information, along with updated contact information for each.

The second step is to determine what you want to accomplish with those assets—do you want to pass them to your children, set up a trust for a favorite charity, or a combination of these? Maybe you want to go in a different direction all together.

Houston Parents: Do Your Children Need Guardians?

Published on: August 22, 2014 | By McCulloch & Miller, PLLC

Who will be your child's guardian, and who will be the guardian of your estate? Experts say it's a difficult decision many families agonize over, and there's no one-size-fits-all scenario.

In the event that you pass away suddenly and unexpectedly, what will happen to your kids? Just the thought of this scenario is probably heartbreaking. Even so, a recent article in TheStreet, titled "How to Give Away Your Kids,"says that it is a scenario you must address. Due to the complexity of this task, the article explains that some families with young children will be "frozen in place" without making a decision.

When drafting your will, you have the option to select two different guardians. You can have a guardian for your child or children and a guardian for the property or the estate. In fact, they can be the same person if you want, but need not be. Typically, people choose two different individuals because the one who cares for the children might not be the person you would want to handle their inheritance. The two-guardians approach may require separate and distinct skill sets.

Houston Parents Can Structure an Inheritance For Their Children

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

Leaving even a small inheritance to your children requires planning. Regardless the size of your estate, structuring an inheritance properly can avoid problems and help your beneficiaries use your hard-earned assets more wisely.

Last year, AARP included an article in its materials titled, "How to Leave an Inheritance to Your Kids." Among other things, the article provides several tips on how to properly set up your estate plan to leave an inheritance to your children.

One tip is to manage expectations. Talk to your children so they will have a better understanding of your assets and what they may expect as their inheritance from them. Another tip is to treat all of the children equally. This will reduce cause for arguments and hurt feelings. This equal treatment should also include sharing responsibilities when it comes to settling your affairs, not just the division of assets. If, however, you decide to split your assets in some manner other than equal shares, take the time to explain your reasoning.

Beneficiary Designations: Do Houston Families Update Key Documents?

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

You may have made a giant estate planning mistake without even knowing it — forgetting to update the names of your beneficiaries for your employer-sponsored retirement plans, IRAs, life insurance policies, mutual funds, bank accounts, brokerage accounts, annuities and 529 college savings plans.

The recent MarketWatch article, titled “Don’t make the No. 1 estate-planning goof,” outlines several reasons for updating your beneficiary designations. Here are a few:

A change of jobs. A job change can mean that you will need to roll over your retirement plan. If this happens, beware! Moving money from your former employer’s retirement plan into your new one or into an IRA could eliminate your beneficiaries’ claims to those assets. You should make sure you have them as beneficiaries on the new account, too.

If You Can Dream It, You Can Do It in Houston…Unless the Trustee Says No

Published on: August 8, 2014 | By McCulloch & Miller, PLLC

Your plan is only as good as the people who implement it. When they aren’t competent, don’t pay attention to details, or decide to pursue their own interests, disaster can ensue. The latest case involves the Walt Disney estate.

"If you can dream it, you can do it." Walt Disney shared great inspiration with the world, and no doubt with his own family. But ever since Disney passed away in 1966, problems with his estate plan have continued to mount.

At issue is a trust he left for his grandchildren. The trust itself is fairly standard in that trust principal was to be distributed to the grandchildren in stages. For one grandchild, everything went according to plan. However, for the other two, problems have arisen.

Can Your Houston Estate Grow After Death?

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

Who knew a “Walk on the Wild Side” could pay off so handsomely? Late rock legend Lou Reed left behind a $30 million fortune, The Post has learned. $20 million-plus in “money and other property” doesn’t include the approximately $10 million in gifts Reed left to his wife, sister and mother in his will. It also doesn’t include life insurance or retirement accounts. The funds are likely from Reed’s copyright and publishing interests …

Everyone probably knows some of the late Lou Reed's songs, such as “Walk on the Wild Side” and “Sweet Jane.” Even though Lou Reed was already a rock and roll legend, he had never had a true number one hit. The songs were not even in the top 10 in the United States. This left Reed with approximately $10 million in assets at the time of his death.

Reed's manager recently filed papers in court that he had already garnered another $20 million in assets for Reed's estate. The New York Post recently reported on how the money was likely earned. The article is titled “Lou Reed left behind $30 million fortune.”

Are You A Pet Owner? Add A Pet Trust To Your Estate Plan

Published on: May 16, 2014 | By McCulloch & Miller, PLLC

As with estate planning for humans, creating a pet trust is designed to give owners peace of mind. To ensure that pets will be cared for in accordance with an owner’s wishes, owners should be sure to definitively detail their pet’s standard of living and nutritional and health care.

Although pets are a beloved part of one's family, in the eyes of the law they are merely viewed as another form of property. This can make planning for the care of your pet difficult after you’re gone. While you can’t leave an inheritance to a pet, when including a “pet trust” as part of your estate plan you can provide for their care when you’re not there to provide it yourself.

“Pet trusts” have a decidedly less serious ring about them than a “Grantor Retained Annuity Trust.” Legal jargon aside, pet trusts can be plenty useful little devices for a common problem, especially amongst elderly pet lovers. In fact, a recent article in the Millionaire Corner considers a pet trust an estate planning basic. The article, titled “Estate Planning Basics: Creating a Pet Trust,” offers some practical pointers to consider.

Deciphering The Technical Language Of Trusts

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

NING, Ding, Grat. Ilit, Crat, Crut, Qtip.

So what are these oddly named trusts and what do people who need them need to know?

Ever been to a place where you don't understand the language? Learning a new language is no easy task. At least when it comes to French or Italian (or Hindu, Swahili or Balinese, if you happen to be that well-travelled) most us of who can’t speak a lick can get through with pointing and smiling. However, when it comes to technical languages there is a different type of difficulty.

No-Contest Clause: Don’t Let Heirs Contest Your Houston Will!

Published on: March 27, 2014 | By McCulloch & Miller, PLLC

A no-contest clause may be a good idea if you have a beneficiary who may be upset by the property distributed to him or her.

Consider this common estate plan predicament: you are drafting a will and know that if it is challenged by a spurned heir or for anyone for any reason, it will end up potentially ruined on the shoals of probate for all to see. What can you do?

This scenario is a all too common. Fortunately, a well-drafted will in many states can include a powerful tool such as a No-Contest Clause. Recently, ElderLawAnswers considered this approach in an “answer” titled “Using a No-Contest Clause to Prevent Heirs from Challenging a Will or Trust.”

Wills And Trusts: Do Houston Families Need One Or Both?

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

The question that many Americans want answered is: is a will or trust best for retirees?

There are simple solutions to simple problems, and complex solutions to complex problems. That being said, when it comes to estate planning many Americans ponder the following: "will or trust?"

If you have found yourself between these horns of dilemma, the simple will and the (sometimes) complex trust arrangement, then you will want to consider a recent Forbes article titled “Wills vs. Trusts: What's Best For Retirees?”