Wills

Can a Trust Become the Owner of My Home?

Published on: November 20, 2019 | By McCulloch & Miller, PLLC

Many instances of estate planning disasters start when well-meaning people try to use a simple solution for what is ultimately a complicated problem. It’s better for all concerned to meet with an estate planning attorney who can present strategies that will achieve goals, rather than attempt a do-it-yourself plan that creates more problems than it solves.

In one example of a do-it-yourself estate plan, a husband decides to use his inheritance to purchase the family home. His wife signs a quitclaim deed to him that puts the property into his living trust, on the condition that if he dies before she does, she is allowed to live in the home until death.

However, the living trust was never signed. So, what would happen to the property if the husband were to die before the wife?

Here are the Estate Planning Documents You Must Have

Published on: November 6, 2019 | By McCulloch & Miller, PLLC

Leaving the workplace behind and heading into retirement can be as much an emotional transition, as it is financial. The prospect of fulfilling dreams long deferred, while recognizing a milestone of aging can take time to work through. At the same time, there are time-sensitive tasks that need doing.

During this process, which is easier for some than others, it’s very important to tend to financial and legal matters in estate planning, reports Forbes in a recent article, “Retirement, Estate Planning: Documents You Should Have.”

Putting together a well thought out financial plan and creating an estate plan lets you be certain that personal, financial, and health wishes will be carried out the way you want. Managing your estate, regardless of the size, starts with working with an experienced estate planning attorney who will help give you greater control, privacy and security of your legacy. Here are the documents you need to get started:

What’s a Safe Place for My Estate Plan?

Published on: October 31, 2019 | By McCulloch & Miller, PLLC

At last, you’ve completed your estate documents, including retitling assets and checking beneficiary designations. The only question left is, where should they be stored? The answer is not that simple.

Do you know where your estate plan documents are? Many people ask their estate planning attorneys to hold onto their originals. They feel like this is the best way to prevent the plans from being misplaced, and curious family members won’t be able to see their contents.

Forbes’ recent article, “Keeping Your Estate Planning Documents Safe,” explains that because of the expense of storage and the move to paperless offices, some estate planning attorneys are now having their clients hold the original documents.

How a Will Help A Child Manage Distributing Your Property

Published on: October 7, 2019 | By McCulloch & Miller, PLLC

A single parent wonders if they need a will, or if just making an account a Payable on Death or POD account will be an adequate solution for transferring his assets when he dies.

Even if you have only one child, if you have no will, things will be complicated for her or him. You may wonder if you can simplify matters, just by creating a POD account with their name as the person to inherit the account when you die. However, what if you have other property, like a car, a tax or credit card refund, or any other asset that is not part of that account? Yes, that property will pass to the sole child by intestacy. However, having a will could make it far easier for your child.

nj.com’s recent article asks “Do I really need a will to help my son when I die?” The article explains that by naming your only child as the beneficiary on a POD or Transfer on Death (TOD) account, that move only governs the transfer of that particular account at your death.

How the Blended Family Benefits from an Estate Plan

Published on: September 23, 2019 | By McCulloch & Miller, PLLC

With about half of all marriages ending in divorce, second marriages and blended families have become the new normal in many communities. Estate planning for a blended family requires three-dimensional thinking for all concerned.

An article from The University Herald, “The Challenges and Complexities of Estate Planning for Blended Families, ” clarifies some of the major issues that blended families face. When creating or updating an estate plan, the parents need to set emotions aside and focus on their overall goals.

Estate plans should be reviewed and updated, whenever there’s a major life event, like a divorce, marriage or the birth or adoption of a child. If you don’t do this, it can lead to disastrous consequences after your death, like giving all your assets to an ex-spouse.

Talking About Financial Planning with Aging Parents

Published on: September 19, 2019 | By McCulloch & Miller, PLLC

Unless you are raised in a family that talks about money, values and planning, starting a conversation with elderly parents about the same topics can be a little awkward. However, it is necessary.

In a perfect world, we’d all have our estate plans created when we started working, updated when we married, updated again when our kids were born and had them revised a few times between the day we retired and when we died. In reality, a recent report by Merrill Lynch and Age Wave says that only half of Americans have a will by age 50.

More than 50% said their lack of proper planning could leave a problem for their families.

Did Groucho Marx Have Estate Planning and Elder Care Problems?

Published on: September 13, 2019 | By McCulloch & Miller, PLLC

“By the time Groucho was an old man, however, he experienced significant problems in his daily activities, medical decision-making and the management of his estate. He suffered from elements of dementia, a heart attack and congestive heart failure, falls resulting in a broken hip, and after that hip was repaired, another fall and broken hip, urinary tract infections, strokes and hypertension.”

Julius Henry Marx, better known as Groucho, died 42 years ago on Aug. 19, 1977, at age 86. Groucho teamed with three of his four brothers—Harpo, Chico, and Zeppo—to become stars of vaudeville, Broadway, film, radio and television. (A fifth brother, Gummo, wasn’t part of the act).

PBS News Hours’ recent article, “How Groucho Marx fell prey to elder abuse” reports that the legal battles over Groucho’s money and possessions went on long after he died. The unrest of his last few years is familiar to adult children concerned with the well-being of their elderly parents.

Why Couples Should Go Through the Estate Planning Process Together

Published on: August 15, 2019 | By McCulloch & Miller, PLLC

“Until death do us part” sounds very different when you are in your twenties and getting married for the first time. As a couple travels through a life together, the time comes to create or revise an estate plan.

Granted, the estate planning process isn’t as much fun as planning a wedding but preparing for property distribution and planning for incapacity is a way to protect your spouse from having to deal with most preventable issues during a crisis. It can also prevent any number of unpleasant surprises.

Despite this, 17% of adults don’t think they need a will, believing that estate planning is only for the very wealthy. No matter how few assets it seems someone owns, completing a few documents can make a huge difference in the future.

How Does “Community Property” Work in Texas?

Published on: August 14, 2019 | By McCulloch & Miller, PLLC

One of the reasons for a pre-nuptial agreement, is to clarify who owns what in the marriage, and what happens to property if the marriage should dissolve. In a community property state, everything is “ours.”

If you live in a community property state, like Texas, and you are married, both spouses own and have an equal right to assets, which are considered marital property. The issue is explored in nj.com’s recent article, “Does this house really become community property after marriage?”

Let’s imagine you own a home before your second marriage and created a will leaving the condo to a child. However, you sold the home and purchased another house in your name using funds from the sale and your own funds.

How Hard is it to be an Estate Executor?

Published on: August 13, 2019 | By McCulloch & Miller, PLLC

Being named an executor for someone you care about is an honor. It means they trust you and your judgment explicitly. However, it is an honor that comes with responsibilities.

The role of an executor varies with the size and complexity of the estate. The executor is charged with making sure that all final arrangements are made, according to the decedent’s wishes. The executor is also involved with making sure that the distribution of property as directed in the will takes place, taxes are paid and more. It’s a big job. Before agreeing to take on this role, you’ll need to know what it entails, and be confident that you can do it. An article from Investopedia, “5 Things to Consider Before Becoming an Estate Executor” explains the details.

Complexity of the Estate. Typically, the larger the estate—which can be in terms of property, possessions, assets or the number of beneficiaries—the harder and more time consuming it will be. The best way to see how difficult the job will be, is to request to see a copy of the current will. If there are obvious red flags, like unequal distributions to children or trusts or annuities, it may be best to say no.