Wills

Houston: Do You Know If Digital Assets Die With You?

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

Death is emotionally difficult enough without discovering that you have no idea what digital assets a person had or what they wanted done with them.

A growing concern among those wishing to properly manage their digital estate is "digital death," which questions what is an asset or special relationship—and how to balance privacy and security with passing on relevant information. A recent Smart Company article, titled "The business of digital life and death," reports that 70% of 65-74 year-old Americans are on Facebook, and there are 30 million accounts that belong to individuals no longer alive. The article cites several factors in dealing with digital assets. For example, there are no international standards on digital assets or for how to address them via estate planning.

Again, social media has not been a burning issue in estate planning as of yet; however, as younger generations start to look at planning for the future, it will become more relevant as it will be more common and because the legal treatment of digital assets after death is clearly defined.

Plan Now for the “What Ifs” of Life in Houston

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

The most important thing for any patient with a long-term illness is to focus on his overall health and mental outlook. Having financial plans in place allows a patient to set other worries aside.

How do you plan for future illnesses or tragedies? The "what ifs" of life are all too real, so get your financial plans in place ahead of time.

Life Insurance is extremely important if you have young children who depend on your income. A recent Time article, titled "When Tragedy Strikes a Young Family," suggests a 20- to 30-year level term policy as a good start to help support your family through the children’s school years. Another often overlooked part of this type of planning is Disability Insurance. As many people have discovered, being unable to go to work due to an injury or sickness can be more financially catastrophic than death. Expenses typically increase with treatment and recovery, but your income stops. A disability policy either through your employer or through a private insurer can be a real wise move and offers a good deal of protection—it provides a portion of your income while you are unable to work.

Hollywood Couple’s May-December Marriage Sheds Light on Estate Planning Challenges

Published on: September 15, 2014 | By McCulloch & Miller, PLLC

Lauren Bacall's loss of husband Humphrey Bogart when her children were young does point to some of the issues surviving spouses face when there is a difference of age of 20 years or more. Of course, May-December marriages don't only happen in Hollywood, and the resources and circumstances can be very different.

Lauren Bacall lost husband Humphrey Bogart when her children were young. When interviewed by Vanity Fair in 2011, she considered herself lucky to be married to Humphrey Bogart, benefitting greatly from his knowledge of Hollywood. Bacall was 25 years younger than Bogart, but she didn't mind the age difference at all. However, losing her husband emphasizes the issues surviving spouses face when there is a significant age difference in the couple— in Hollywood or otherwise.

In May-December marriages, there is a strong possibility one spouse will survive the other by many years. Typically it is an older man and a younger woman, although vice versa as well. Since women generally live longer than men, when it is the husband who is the older spouse, the estate planning issues are even more critical. A young mother with children can be placed in a very tenuous position if she has stopped working to raise the family and the husband passes away. A young mom needs a financial plan that contemplates this situation.

Houston Boomers – Beware of These Estate Planning Blunders

Published on: September 12, 2014 | By McCulloch & Miller, PLLC

David Cutner, partner at Lamson & Cutner, attorneys for the elderly and disabled offered the following tips for both estate planning and long-term care for boomers.

A recent Fox Business article reported that the majority of seniors are completely in the dark on one of the biggest financial risks they are facing. The article, titled "Estate Planning Mistakes Every Boomer Should Avoid," sheds some light on the catastrophic costs of long-term care.

According to the U.S. Department of Health, 70% of the U.S. population over age 65 will require long-term care, and over 40% will need nursing home care for some period of time. Most people do not have insurance coverage for this risk and believe inaccurately that Medicare covers their long-term care. That is just not the case, and without planning, if care is needed, life savings are quickly wiped out. Fortunately, there are solutions that will protect an individual's assets and income, and at the same allow access to Medicaid benefits. An experienced elder law attorney will have the knowledge and background to provide you with needed advice and the skills to design a strategy that will achieve your goals. A well-drafted estate plan is a wise investment to ensure that your assets are passed to your beneficiaries efficiently—in a manner that avoids conflicts among your heirs and that minimizes costs.

Houston Scam Alert! Don’t Fall Victim to Estate Planning Cons

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

Constantly in the news, it seems like there is a new scam making headlines. One surprising area in which scams are becoming more common is estate planning. Each year, more people fall victim to unscrupulous and unqualified sellers of ineffective estate planning documents. Often, these scammers are door-to-door salesmen or telemarketers.

Estate planning is a very personal and essential process to protect your loved ones and your assets. And all it takes is a scammer to mess that all up. A recent Webwire article, titled "How to Avoid an Estate Planning Scam," points out things to keep in mind when considering your estate planning options.

Employ a qualified estate planning attorney. Do-It-Yourself is very popular these days, from home improvement to filing income taxes. There are many websites that offer DIY wills. Beware! Estate planning is not a point-and-click or fill-in-the-blank proposition: it is a complex area of law with different rules depending on where you reside. Use a licensed, experienced estate planning attorney to prepare your estate plan. Check with the state bar and make sure he or she is licensed to practice law in your state.

Yes, Houston. You Really Do Need a Will

Published on: September 10, 2014 | By McCulloch & Miller, PLLC

If for no other reason, you need a will to name an executor (or executrix).

So, do you really need a will? Yes. Really.

A recent Forbes article titled "Do I Really Need a Will?" recommends that you should have a will to at least designate an executor or executrix to administer your estate. This individual will be responsible for taking care of your affairs after you pass away. Without a will, the probate court will appoint an administrator—this could end up being almost anyone. Anyone with a decent reason has the ability to petition the court to be appointed—like your cousin Reggie (who you last saw at your fourth birthday party) or your Uncle Ted (who is always dressed like it is 40 below, even in July).

Estate Planning Must-Dos For Houston College Students

Published on: September 2, 2014 | By McCulloch & Miller, PLLC

After traveling to Mexico for spring break, Alex developed a severe intestinal bug that landed him in the college infirmary. Franc rushed to visit him there, only to find that doctors refused to discuss his son’s condition, citing privacy concerns.

If you have a college-aged child, you may need to get their estate planning started sooner than you think.

Consider these two fundamental estate planning documents – the durable power of attorney and the health care proxy. Even though they are usually thought of as only for older adults and seniors, younger people need them just as much. If a young adult does not have these, typically parents will not have the authority to make health care decisions or manage money for their kids after they are 18. It does not matter if they pay their college tuition, include them on their health insurance, and claim them as dependents on their taxes. In fact, without these fundamental documents, parents might need to seek court approval to act on behalf of their young adult children in the event the children are in an accident and become disabled.

Houstonians Can Back Up Life With An Estate Plan

Published on: September 1, 2014 | By McCulloch & Miller, PLLC

…As with hard drives, our limited shelf life requires that we make the most of each day while also planning for a peaceful transition. Having loved ones struggle with managing unorganized financial affairs with no assistance only prolongs grief and blemishes fond memories.

Why do most of us give more attention to backing up our PCs than we do to our estate plans? This question was explored in a recent Time article, titled "How Writing a Will Is Like Backing Up Your Hard Drive." To make sure our computers work effectively, we conduct updates, check for viruses, and clean up unwanted material. Being unorganized only leads to trouble and added expense. Making our loved ones deal with unorganized financial affairs and estates only creates more stress and adds to the grief.

In one way, if you do not back up your PC's hard drive or do not have an estate plan, you are not alone. However, that really is not good news. Just because a lot of people flunk the final exam does not make the conversation with your parents any easier. So too, in estate planning—being unorganized only makes more work for your family and your estate planning attorney. On top of that there will be more expenses involved.

Robin Williams Set Up Trusts To Protect His Children From “Affluenza”

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

Some people decide, as Robin Williams apparently did, that it's better to hand down wealth to adult children while you, the parent, are still alive. (Of course, you have to have more than enough assets for yourself to be able to do that.) One benefit is that you will have some ability to help guide your children's decisions, and it can be hugely rewarding to watch them build their lives responsibly with the help of the gifts you have given them.

Early reports indicated that Robin Williams created a trust to control the distribution of assets to his children. His children, 22-year-old Cody, 25-year-old Zelda, and 31-year-old Zachary each were reported to receive money in incremental stages, not all at once. At age 21 they each would receive one-third of their share; at 25 they would receive half of what remains; and when they reach age 30, they each would receive the remainder of their full share.

Now, it is being said that these trusts are not currently part of his estate planning. But the trust talk begs the question: how much should you give to your heirs in trust and when should you give it?

Baby On Board in Houston? Have You Discussed Life Insurance and Estate Planning?

Published on: August 28, 2014 | By McCulloch & Miller, PLLC

Why would parents procrastinate on something that it so important to their family’s well-being? The fact of the matter is that life insurance and estate planning are two topics that most people just don’t want to talk about. It is no fun to think about your own demise and picture your growing family without you in it.

If you are expecting a new baby or are already new parents, you're biggest concern may be having enough diapers in the house. But there's so much more to discuss than diapers and formula. Have you had the life insurance talk yet? What about estate planning?

A recent article in The Kansas City Star, titled "Money Matters: Two things that new parents should not put off…but usually do," lists several items that new parents should consider when examining their life insurance.