Wills

What You Need to Know About Wills

Published on: September 29, 2017 | By McCulloch & Miller, PLLC

Your best bet for making or changing a will, is to sit down with an experienced estate planning attorney, so that your will won’t be invalid. Mistakes in wills are not easily fixed.

Having an estate plan in place and discussing your estate plan with your loved ones in advance, can help eliminate some of the emotional turmoil that accompanies death. The South Coast Register from down under offers some worthwhile suggestions in “Dying to Know Day: Wills and won’ts of estate planning.”

A will is a legal document that lets you choose the relatives, friends, and charities who you want to inherit your assets when you die.

How Are Homes Taxed When Inherited?

Published on: July 19, 2017 | By McCulloch & Miller, PLLC

If you plan on leaving the family home to your heirs when you die, be aware of the tax liabilities that are associated with inheriting a house.

This is the type of estate planning decision that requires a closer look with an estate planning attorney to evaluate the pros and cons, as well as the short and long-term consequences. First, you’ll need to know the value of the house, which will be based on its fair market value on the date of the owner’s death, according to a recent article from NJ.com, “Complex inheritance taxes on a home.”

If you have a home valued at over $1 million, it may sell for close to that amount. Let’s say that you’re single and are 80 years old. You live with your widowed sister. Your will instructs that your sister should have life ownership when you pass and then it is left in trust for nieces and nephews. What would their tax bill be?

Address These Four Concerns for Blended Family Finances

Published on: June 23, 2017 | By McCulloch & Miller, PLLC

Blending a family is not an easy task, but doing so successfully can create a new and strong family unit. Among the challenges are how to blend finances.

Blended families are no longer limited to television sitcoms. The Pew Research Center reports that 41% of all Americans have at least one step-relative of one kind or another. As many as 1,300 new stepfamilies or blended families are created daily, according to the Stepfamily Foundation. But blending families includes decisions about finances, and that includes estate planning issues.

The Miami (OK) New-Record’s recent article, “4 tips to resolve financial concerns in stepfamilies,” provides some tips and answers for issues within stepfamilies.

Leaving a Vacation Home to the Next Generation

Published on: June 21, 2017 | By McCulloch & Miller, PLLC

Unintended consequences can occur when dividing up real property, which is often harder to distribute than investment accounts or savings accounts. Planning for real property division must take into account the different circumstances of your heirs.

You may have envisioned a time in the future, when your children and grandchildren enjoy the same lakeside home as you have for years after you’re gone, and are pleased with the idea of leaving the family vacation home to the next generation. But think again, says a recent article in Financial Planning, “Save clients from tax pitfalls, family strife when passing on that lake cabin,” because your vision may not translate into reality.

Some of the kids may be attached to the family vacation home and want to keep it. If possible, the best solution is a buyout among the siblings. That’s not as simple if finances don’t allow it, and the sentimental siblings are forced to sell, resulting in hard feelings. Another option is to put the vacation home in an irrevocable trust to remove it from the estate.

Wrong Answers to Two Misconceptions about Estate Planning

Published on: April 3, 2017 | By McCulloch & Miller, PLLC

The moment you become a parent, you need a will. The same is true once you acquire any kind of asset that you want to give to someone after you die. It’s really that simple.

The reasons why so many people don’t think they need a will fall into a number of different categories. However, the two biggest ones are described in an article appearing in the Pauls Valley Daily Democrat titled “More on estate planning myths.” Chances are good you’ve heard them before, but you may not have heard why they are plain old wrong. Here’s why:

“I’m young, so I don’t need a will.” This is not true. One of the most important parts of a will for a young couple, is a provision that designates a guardian—the person(s) who will care for their young children in the event of their mutual death. This is rare, although it does happen. To make matters worse, what if there’s a family fight for custody of your children? Make this selection so the court isn’t forced to select a guardian for your minor children if the event arises. A will can give you peace of mind concerning the care of your children.

Leave a Legacy of Peace for Your Family with Conversations and Estate Planning

Published on: November 29, 2016 | By McCulloch & Miller, PLLC

When the greed nerve gets tapped, relationships suffer. There are things you can do now that will lessen the likelihood of family battles after you pass.

Every family has its own dynamics, and some siblings that never resolve their differences, no matter how many years go by. When both parents pass away, siblings either make peace with each other (and regret the lost years) or go at it even more intensely. Adding money to the mix can spell disaster and split families permanently.

Motley Fool’s article, “Avoid family fights over inheritance,” says you might be surprised at the amount of money that can cause arguments. It doesn’t have to be a fortune—deep-seated feelings of rivalry and jealously are, in many instances, at the root of the problem. With that in mind, let’s look at four ideas to consider in an attempt to avoid a battle royal over your assets:

For Entrepreneurs, Make a Succession Plan Part of Your Estate Plan

Published on: November 28, 2016 | By McCulloch & Miller, PLLC

Estate planning for entrepreneurs is not complete until it includes a succession plan. Individuals who create successful businesses often find it hard to consider handing over the reins.

Entrepreneurs would not succeed without their ability to focus all of their energies on their business. It is not easy for this type of person to imagine that one day they may want to retire or that the possibility exists that they might become ill, injured or even die. Without an effective estate plan that includes a succession plan, their work, staff and families may be placed in jeopardy.

A recent business.com post, “5 Estate Planning Tips for Entrepreneurs,” lists these important estate planning essentials:

When “The Talk” isn’t About the Birds and Bees

Published on: November 8, 2016 | By McCulloch & Miller, PLLC

Conversations about money, death and dying wishes become tangled up in strong emotions surrounding these matters. A strategic approach might be helpful.

Every family is different, but almost every family struggles with conversations about wills, estate planning and money. A recent article in The Chicago Tribune, “Have the estate planning talk,” advises a thoughtful approach while letting you know that this is hard for everyone.

This is a tough topic because feelings and money get tied up. Money in many instances can conjure feelings of control (or lack of it), dignity, shame, fear, or a lack of confidence. Many conversations go south quickly. For example: if an adult son asks his mother if she and his father have recently updated their wills, he might be met with a response such as, "Why? Are you hoping we’ll die soon, so you can use your inheritance to finally pay off that huge mortgage we warned you not to take?"

Make Sure Your Divorce Degree Aligns with Your Estate Plan and Vice Versa

Published on: September 6, 2016 | By McCulloch & Miller, PLLC

Forget to make these changes and your heirs may never forgive you. Forget to align these documents, and your estate planning attorney will never forget you.

Once the process of legally ending your marriage begins, you will need to make sure that your own interests are protected and that includes updating your estate plan to reflect this big life change. While some things may remain the same, like leaving your children certain assets, be assured that pretty much everything else will change, according to Forbes’ article, “The First Thing You Must Do When Your Divorce Is Final.”

Once your divorce is final, that is, the divorce decree has been approved by a judge, and a judgment rendered, contact your estate attorney and begin to review and revise the following legal and estate planning documents:

Not Having a Will is Risky Business

Published on: September 1, 2016 | By McCulloch & Miller, PLLC

You know you need life insurance to protect your loved ones. But do you know that having a will is equally important to protect against risks?

Without a will, your family faces a number of potential financial disasters. If you think you don’t need a will because you aren’t wealthy or only own one home, you may be surprised to learn how not having a will leaves your loved ones open to a number of serious and costly problems.

Nerd Wallet’s recent article, “5 Hidden Dangers of Not Having a Will,” lists some of the most challenging issues, reminding you why it’s so important to have an up-to-date, signed will.