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Knowing, Respecting, Honoring Veterans

by with No Comment Estate Planning Drafting SoftwareLegal TechnicalVA

As the government benefits supervisor and paralegal for The Elder & Disability Law Firm of Victoria L. Collier, I work with both Medicaid applications and VA claims. However, VA cases dominate and easily outweigh Medicaid files in our outstanding caseload by a ratio of 4:1.

Bigstock-Honor-And-Valor-1883321This may be due to Victoria’s being a wartime Veteran herself, her national recognition as the nation’s expert lawyer for VA Improved Pension with Aid and Attendance, or it may have to do with the length of time it takes to prosecute a VA claim until resolution. Regardless of the reason, I spend a great deal of time communicating with Veterans and their families and getting to know their personal history.  

I often pore over military records for information – some of these so fragile that I fear making photocopies of them. Some Veterans keep meticulous records of their service and every administrative detail of their time in the military is recorded in documents that surely no one has looked at in years. Others have barely any record of their tour of duty at all and we must file a request for a copy of their discharge paperwork.

As I began to prepare for a trip to D.C recently, I automatically planned a trip to the National Mall, in particular the National World War II Memorial, Vietnam Veterans Memorial and the Korean War Veterans Memorial. I am a first-generation American of Argentine-born parents, neither of whom served in the American Armed Forces. My father did serve conscripted service in his home country and was told by his superiors that he was the worst soldier in the history of the Argentine army. However no one else in my immediate family has served. Then why is it so important to me that I visit these memorials on my trip?

It is important to me because of the Veterans that I have come to know and respect through my work. And by visiting these memorials, I can in some small way honor their service and that of their fallen comrades. But then I also remember sitting on bleachers on just about the hottest and most humid August day on Parris Island watching my nephew become a United States Marine and I have a son who may yet live to serve in our Armed Forces. Even to the contact that I have had with the many, many Veterans currently working at the Department of Veterans Affairs and who must routinely thank callers for the Veteran’s service. I must in turn thank them for their service in whatever way I can.

If you want to learn more about Veteran Benefits Planning, Asset Protection or Medicaid Planning, join us for the Estate Planning Industries Only Practice Enhancement Week in St. Louis, June 1st – 5th.  There are still a few seats left so grab them before they're gone.  Doors close in one week and we always sell out.  If you're even thinking about showing up, click here to register now before seats are gone.

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and Production Coordinator for Lawyers for Wartime Veterans, LLC. 

 

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How To Add Insurance Services To Your Practice

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal Technical

One of the greatest challenges (dare I say, frustrations) of being an estate or elder law attorney is dealing with the nature of a “transactional practice.” 

It can be a constant effort and struggle just to find new clients. Then, once current business is completed and files are closed, the attorney has to start the next month over at ZERO again… hunting fresh prospects from scratch.  Yuck!

Bigstock-Word-Cloud--Insurance-56656112It’s no wonder why the idea of creating “residual” or “multiple” streams of income is all the rage in estate planning and elder law circles.  We all want the gut-wrenching financial rollercoaster to stop!

Yet very few lawyers ever take the plunge into this territory, despite the many benefits (…financial, mental, emotional AND practical). Why is that?

Here’s what I think: there are just way too many webinars and seminars out there that teach WHY the additional of financial services is so wonderful, but no one ever stops to show you HOW to step out and make magic happen.

That stops today.

At our upcoming Tri-Annual Practice Enhancement Retreat happening June 1-5 in St. Louis, MO, we have an entire session devoted to helping you incorporate insurance services into your practice. 

You will have the opportunity to learn from, strategize with and bounce ideas off of attorneys who are already successfully doing what you want to do!

Whether it’s tips for dealing with ethics issues, suggestions for getting started (even if you have ZERO experience with financial services), or uncovering practical strategies for running a more holistic estate or elder law practice that serves every need of the client, we are here to guide you toward success.

Reserve your space now to ensure you are registered for this in-depth session, and the rest of the trainings at our Tri-Annual Practice Enhancement Retreat.

We are already 92% full and now making preparations for overflow seating!  Reserve space now for you and your team before we are completely full.

REGISTER NOW HERE

Victoria L. Collier, Veteran of the United States Air Force, 1989-1995 and United States Army Reserves, 2001-2004.  Victoria is a Certified Elder Law Attorney through the National Elder Law Foundation, Author of 47 Secret Veterans Benefits for Seniors, Author of Paying for Long Term Care: Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit, Founder of The Elder & Disability Law Firm of Victoria L. Collier, PC, Co-Founder of Lawyers for Wartime Veterans, Co-Founder of Veterans Advocate Group of America.    

 

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Joint Or Individual Trust

by with No Comment Estate Planning Drafting SoftwareLegal Technical

A quandary most estate planning attorneys encounter is whether to use individual or joint trusts when planning for a married couple.  Some argue a joint trust is simpler to administer than doing separate trusts and less paperwork.  Other attorneys contend separate trusts are simpler to track and fund assets.  The answer, I believe, lies within two core issues; the personal planning intentions of the client and whether estate planning asset protection or tax planning is the legal strategy to be utilized.

Bigstock-Cross-Roads-Horizon-29420951When estate planning for a couple, the primary distinction to determine whether drafting a joint trust or separate trusts is determined by the personal planning goals of the client.  Most notably, do the husband and wife intend to follow the same plan?  That is, do they intend to have the same beneficiaries, the same distribution patterns, the same trustees, and the same trust protectors?  If yes, then a joint trust holding all of the assets of the husband and wife is probably the simpler approach.  Some may challenge using joint trust when one spouse has assets that are separate property, like an inheritance from a parent.  While this adds an additional element to consider, it is not related to the overall planning strategy, but merely a funding issue.  A joint trust can easily account for separate assets by ensuring there are separate schedules on the joint trust that detail the husband's assets, the wife's assets and the joint assets.  Further, utilizing the individual spouses social security number on all accounts outlined on their separate schedule and on half of the joint schedule accounts, assures their separate assets are properly maintained in a joint trust.

The opposite situation, when clients have different plans also impacts whether an individual or a joint trust is used. This is common in a second marriage.  Typically, clients in second marriages have joint assets, but separate beneficiaries’ distribution patterns, and trustees.  A properly drawn plan will allow for the deceased spouse to provide for their surviving spouse without having to disinherit their separate children or other family members.  While this can become more complicated to administer through a joint trust, it can easily be accomplished if the trust is clear on the separation and management of the assets after death of a spouse.  For example, the LWP™ drafting system allows the attorney to clearly set out the separation of assets and distribution goals specific to each planning strategy.   For most drafting systems that don’t accommodate this level of customization, separate trusts are easier to accomplish the separate goals of the clients when distribution patterns are significantly different. 

The final consideration when deciding on separate trusts or joint trust is whether the client desires asset protection or estate tax planning.  In this distinction, the use of the formula funding clauses becomes important when utilizing joint trusts.  Separate trusts are easily distinguished as they are funded independently of the spouse assets, whereas in a joint trust, if all assets are funded on a joint schedule, you may lose some of the tax benefit by not being able to maximize your federal estate tax exemption.  For example, if one half of the total joint assets in the trust (represents the deceased spouse’s portion) does not exceed the federal exemptions and the spouse does not have other assets (i.e. IRAs) outside the trust, full utilization of the individual credit shelter amount may not be achieved.  Conversely,  if one utilizes a formula that maximizes the exemption at the first death, it may not meet the estate planning needs of the separate planning of the spouse.  The formula clause must account for joint assets and all outside assets of the deceased grantor to maximize the estate exemption on the death of the first spouse, and the planning must consider the separate assets of each spouse and their individual planning goals.  The same is true for the clients who do not have estate tax concerns, but rather, the threat of long term care costs to the surviving spouse.  In this case, the formula finding must be formulated to provide the greatest asset protection from cost of care, not taxes.

So to summarize, whether an attorney does a joint trust or separate trust, there is no legal differential on the outcome if the attorney is diligent, and the document properly instructs the trustee to get the maximum benefit for the client to meet their planning and protection goals. Clients in one long term marriage are generally able to be served efficiently and effectively using a joint trust while clients who are on second marriages or have different distribution ideas may better served separately if the attorneys software is not thorough enough to manage it.  Tax planning and asset protection goals can also be met using joint trusts if the attorney is diligent in allocating the separate assets to the separate schedules (and Social Security numbers where appropriate) of the grantors.  So the good news is there's no wrong answer but it's important you distinguish what the client’s goals are and your software flexibility to adhere them.

If you want to sharpen the saw on your estate and elder law legal technical join us for our Estate Planning Practice Enhancement Week in St. Louis, June 1st – 5th.  Below is just some of what you'll get (and this is just Monday and Tuesday)!  You can look at the full agenda and register here.

Asset Protection

  • Recent Updates to Asset Protection and Medicaid-Compliant Strategies
  • The New Asset Protection Strategies Dominating the Marketplace
  • The Death of DAPT’s, FLP’s, GRATS, GRUTS, and Tax Planning, and What’s Replaced Them
  • The Five Essential Trusts and Key Drafting Needs to Serve 99.7% of Clients
  • The Power of Powers of Appointment, in the Right Places
  • Four “Must Have” Drafting Considerations and Three “Most Forgotten” Powers in Trust

Medicaid

  • Four Steps to Medicaid Eligibility for Any Client
  • How to Calculate the “Breakeven” to Ensure the Proper Filing Date for the Shortest Penalty Period
  • Medicaid Qualifying Annuities – Hidden Risks and How to Properly Disclose Them to Clients or Protect from Them
  • The Seven Key Factors to Calculate any Medicaid Case in Seven Minutes (or Less)
  • IRAs – Exemption Versus Taxes, How to Calculate if IRAs Should be Liquidated or Exempted in Medicaid and VA Cases

VA Benefits

  • Meet the VA
  • Service Connected Benefits (Veterans & Widows/Dependents)
  • Non-Service Connected Benefits – Improved Pension, Housebound, Aid & Attendance
  • Asset Eligibility
  • Application Process
  • Correct Forms
  • Annual Reviews
  • Appeals Process
  • Representation and Marketing – Getting Veterans to March in Your Door

David J. Zumpano, Esq, CPA, Co-founder Lawyers With Purpose, Founder and Senior Partner of Estate Planning Law Center

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Veteran Benefits For Widows

by with No Comment Estate Planning Drafting SoftwareVA

While the Veteran is often the focus when discussing Veterans Benefits, we must not forget the range of benefits available to surviving spouses of Veterans. Widows are entitled to an array of benefits, some commonly known and others more obscure.  But, for almost every type of benefit discussed, the Veteran must be deceased. During a Veteran’s lifetime, there are no benefits payable to the spouse even though the latter’s existence as well as their medical expenses, income, and assets can positively or negatively impact the benefit for which the Veteran may qualify. For more information from the VA website: http://explore.va.gov/spouses-dependents-survivors.

Bigstock-Veterans-Day-4591292Estate and Elder Care Planning attorneys are most familiar with the non-service-connected disability pension for surviving spouses also referred to as “death pension” or “widow’s pension” or “widow’s aid and attendance”. It is not necessary for a Veteran to have already filed a claim with the Veterans Administration or to have been in receipt of non-service-connected disability pension in order for a surviving spouse to file his or her own claim. 

Claims Based on the Veterans Disability:

Notwithstanding, there are two particular scenarios that expand benefit options to spouses at the time of the Veteran’s death. First, if the Veteran had filed a fully-developed claim for pension that was still pending, a surviving spouse could file a substitution of claimant form in order to assume the Veteran’s claim. Second, if the Veteran had filed and been approved for pension, but had not yet received the funds, then the surviving spouse may file an accrued benefits claim to receive benefits that were due and payable to the Veteran at the time of his/her death.

The counterpart to the non-service-connected disability pension for surviving spouses when the Veteran has a service-connected disability is called Dependency and Indemnity Compensation (DIC). DIC is for surviving spouses and dependent children of Veterans who were disabled by an injury or illness that was incurred or aggravated during active military service. Claims for death pension, accrued benefits, and DIC are all filed by using the same VA form 21-534EZ. For this reason, the claimant often receives a determination for all three types of claims in the VA award letter even when intending to only apply for death pension. More information regarding DIC can be found at http://explore.va.gov/disability-compensation/spouses-dependents-survivors.

Burial Benefits:

Apart from these monthly benefits, there are one-time flat rate benefits that are available when a Veteran dies. These include a small burial allowance as well as additional allowances for interment and transportation and those amounts vary depending on whether the Veteran’s death was service-connected or not. In most cases, surviving spouses on record are paid the burial allowance automatically once the VA is notified of the Veteran’s death, but a claim must be filed to obtain the additional allowances. See http://explore.va.gov/memorial-benefits for more information regarding these benefits.

20/20/20 Rule:

Finally, the 20/20/20 rule entitles unmarried former spouses of Veterans to medical benefits and commissary and exchange privileges as long as they were married for at least 20 years, the Veteran served at least 20 years creditable in determining eligibility to retired pay, and the marriage overlapped the service period by 20 or more years. A former spouse who meets these requirements is known as a 20/20/20 former spouse. Former spouses may also qualify for the Survivor Benefit Plan (SBP) as long as they are not remarried before the age of 55. In fact, a former spouse may regain eligibility if the remarriage ended before the former spouse turns 55. A former spouse can be designated as a SBP beneficiary by court order or by a voluntary, written agreement with the Veteran. For more information go to http://www.militaryfamily.org/info-resources/marriagedivorce/benefits.html.

If you want to learn more about Lawyers With Purpose and how it can support you in your elder or estate planning practice, join us for our Practice Enhancement Week in St. Louis the 1st – 5th of June.  You can check out the full agenda here.  And if you have any questions at all, please contact mhall@lawyerswithpurpose.com.  

Victoria L. Collier, Veteran of the United States Air Force, 1989-1995 and United States Army Reserves, 2001-2004.  Victoria is a Certified Elder Law Attorney through the National Elder Law Foundation, Chair, National Academy of Elder Law Attorney’s VA Task Force, Author of 47 Secret Veterans Benefits for Seniors, Author of Paying for Long Term Care: Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit, Founder of The Elder & Disability Law Firm of Victoria L. Collier, PC, Co-Founder of Lawyers With Purpose, LLC. 

Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and Production Coordinator for Lawyers for Wartime Veterans, LLC. 

 

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15-25 Initial Consults For Just Two Hours Of Your Time? YES!!

by with No Comment Coaching & ImplementationEstate Planning Drafting SoftwareLegal MarketingSystems & ProcessesTeam Building

Filling your calendar each month with new initial consults shouldn’t be such a struggle.

In fact, when you know how to easily generate 15-25 initial appointments in just two hours of your time, you’ll never have to lose another wink of sleep worrying about where new business is coming from.

Bigstock-Football-Fan-Celebration-21038801You can just dip into your “toolkit” and make magic happen… on your own terms and on a budget that you feel comfortable with.

So how is it done?  SPEAKING!

We’re not talking about those generic, Chicken Dinner Estate Planning Workshops, either.  Chances are, you’ve tried them before–only to spend a ton of money with very little results.

Here at Lawyers With Purpose, we have a unique methodology for conducting workshops that have worked consistently for 35 years to “put butts in seats,” keep audience members engaged, and close the presentation in such a strategic way that listeners can’t help but rush the podium to schedule an appointment with you.

15-25 new initial appointments per workshop is just the average that our Lawyers With Purpose members experience.  And many are conducting more than one a month!

What would your life and practice look like if you started each month with 15 + initial appointments already on the books?

We’ve got 2 programs just for you!  Our Train the Trainer Speaker School AND “How To Protect Your Stuff in 3 Easy Steps” are where you learn how to make it happen. 

We are opening these two intensive workshops to just a handful of attendees happening during the week of June 1st in St. Louis, MO on a first come, first serve basis.

It doesn’t matter if you’ve never conducted a workshop before or if you’re an experienced speaker who just wants to “sharpen the saw” and boost results.  These two programs will teach you, among other things, how to:

  • Fill the room with only your ideal prospects
  • Engage your audience and hit deep emotional pain points with our training on platform perfection, value proposition and measuring the effectiveness of stories.
  • Speak to SELL by “seeding” your desired outcome, leading audience members down your unique funnel and closing in such a way that incites listeners to take immediate action.

Plus, attendees of the “How To Protect Your Stuff…” Specialty Workshop will leave with our ENTIRE “done-for-you” seminar package, including handouts, PowerPoint presentations, speaker notes, evaluations marketing materials, video & audio of the workshop and audio of stories to use in your presentation.

All you’ll have to do is pick a date and venue and you’ll be ready to host your first workshop as soon as you get home!

If you’re even remotely curious about either of these programs, don’t wait to go HERE now to get all of the details and registration information.  Spaces will go fast—we fill up each and every year.

REGISTER NOW

To your success,

Molly

P.S.  You do not have to attend the entire retreat to participate in Train The Trainers: Speaker School or the “How to Protect Your Stuff…” Specialty Program. Feel free to join us just for just these events, or stay for the entire week for the best experience and opportunity to grow your practice.   Register now: retreat.lawyerswithpurpose.com

 

 

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The Key Benefits Of Templates

by with No Comment Estate Planning Drafting SoftwareLegal Technical

Recently we had a member complain that our system "didn't work the way he wanted it to”.  We later discovered he was on the ListServ of another major estate planning organization and referred to one of our planning templates for designing and drafting our trusts. 

Immediately, many people on the ListServ requested a copy of the template, which he kindly obliged.  Aside from violating his licensing agreement and being guilty of conversion, he did not even understand and appreciate the value of what he was providing, while those requesting it, did. 

Bigstock-Old-Keys-42114148So let's examine why templates are so powerful.  Typically, templates are used as a guide for us to create legal documents.  The challenge is, most documents are lawyer centered and the template is merely a reflection of the document “options” to ensure you know what options to include.  I believe a template should be used to guide the attorney to counsel the client on all options available to achieve the client goals, not just the specific provisions allowed or limited in a particular document creation program.  That's where properly drawn templates are extremely powerful.

A properly drawn template must match and tie to the software that actually generates the document and must allow the attorney to utilize any design choice the attorney deems appropriate to achieve the client’s goal.  Lawyers with Purpose document templates, have unlimited customization ability that integrates 100% with the software to accommodate it.  So rather than being restricted to the options in a typical document instead, a properly created template that's integrated with the software will permit true customization at every element of design in the document being created.  A proper template will not only allow you to custom design each and every document to the needs to the client, but more importantly, integrates the custom design into all of the different legal documents together with a single entry. 

Our templates integrate all legal issues for the client to consider and when used with the software generates all documents to complete the clients plan with the customizations.  This is consistent with the way clients think and more importantly, takes each of the custom drafting options of the client and properly integrates them across all different planning documents with one single entry and one single template.  This creates not only better plans, but a more efficient way of designing and drafting them to accomplish the clients overall goals. 

Perhaps the greatest benefit of a powerful template is when you make choices on it and when it's implemented into the software, it warns you of inconsistent choices that you have made that threatens the overall plan you've selected for the client.  This is where the power of artificial intelligence in the LWP client-centered document creation system is so critical.  By using the template it guides the attorney to all of the various counseling issues available to a client in each area of their life.  Thereafter choosing the options that are most helpful for the client the template is then shared with a paralegal or drafter in your office who will then translate it into the software to create the will, healthcare proxies, powers of attorney, personal care plan, revocable trust, and irrevocable trust, all from a single entry.  What's more powerful, are the custom choices the client makes are integrated into each of those documents, with a single client interview and single entry into the software.  As further protection, if the attorney chooses to elect different variable in the planning strategy that are inconsistent with the overall goal of the client the software maintains and keeps track of all choices to alert the attorney if he has created a scenario that might put the client's overall objectives and goals at risk. 

So how important and effective can templates be?  Can you imagine the power of templates when they're properly designed and integrate with the document creation system?  Discover the power of templates to you and your clients and how to utilize them to integrate the planning strategy to achieve client’s goals. 

To learn more about our templates and our systems and processes to support your estate and elder law practice, join our Practice Enhancement Event in St. Louis in June.  You can check out the full agenda here and see all that it has to offer your estate planning and elder law practice and your team.  You do not want to miss this event!

David J. Zumpano, Esq, CPA, Co-founder Lawyers With Purpose, Founder and Senior Partner of Estate Planning Law Center

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Finally! An Intensive Legal Workshop That Trains Your TEAM On Practice Success

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal MarketingSystems & ProcessesTeam Building

You’re only one person, and if you want to be successful in your practice, you need to be focused on doing ONLY that which makes you the most money—serving clients, networking with key advisors and handling legal matters.

You should not be answering the phone.

Bigstock-success-and-winning-concept---53462125You should not be “babysitting” staff members so they stay on track.

You should not have to get too involved selling your services, either (hint: your staff members should be your most profitable evangelists… if they are not, you have a problem).

 …Plus so many other things that you may find yourself “stuck” handling on a daily basis.

 Your team members really don’t want to let you down or add more work on your plate; they simply don’t understand where they fit in the big vision of your practice or how to move beyond their “9 am to 5 pm, punch a clock” conditioning that they’ve been taught their whole lives.

That’s why at our Tri-Annual Practice Retreat this year in St. Louis, we are devoting two entire days to training your team for practice success mastery (June 4th and 5th).    

We are going to transform your staff members into the most profitable assets of your practice!

This training includes our Firm Retreat, which is a dedicated, uninterrupted half-day where we will help create YOUR personalized Law Firm “Money Plan™" that will equip each staff member with a step-by-step blueprint to hitting your revenue goals in just four months! 

No more “it’s not my job” attitudes. No more “9-5” mentality. 

Our team training event will empower your staff members to work your practice as if it were their very own business and their own capital on the line. 

Sound good?

Then don’t wait to register for our Tri-Annual Practice Enhancement Retreat.  Bring your staff members to this intensive event but don’t wait, doors close in less than 30 days (May 15th)!  To view the full agenda and pricing information, visit: www.retreat.lawyerswithpurpose.com

Molly Hall

P.S. Think about all of the training you’ve attended to learn how to grow your practice and push beyond limiting beliefs and habits. Why shouldn’t your key staff members do the same?  They arguably have the most interaction with your clients and help steer your practice ship each day.  Make the wise choice to invest in their success to boost your own: www.retreat.lawyerswithpurpose.com

 

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2 Ideas On What We Can Do About Lawyers Who Give Assets To Kids

by with One Comment Asset ProtectionEstate Planning Drafting SoftwareLegal Technical

As an estate planning attorney for 23 years, I cannot count the number of times I have been saddened and frustrated by clients who have given their assets away to their kids to protect them.  This advice was inadvertently given from a general practitioning attorney (or sometimes self-professed estate planning attorneys) who convinced the client it was a much "simpler approach" to protect assets.  Those of us in the estate planning world know nothing can be further from the truth. 

Bigstock-Gift-Is-A-Lemon-6520836Transferring assets to children has many high risks that clients aren't familiar with.  Most commonly, it can create a gift tax filing requirement that is rarely done and results in a “carryover” tax basis to the beneficiary who receives the gift.  Many of these general practitioners fluff it off because they may have reserved a life estate for mom and dad, to preserve or step up in basis on the home.  While they may be correct on the step up in basis issue, what they have failed to consider is, what is the impact of conveying the house to four kids is after the death of mom and dad?  Imagine trying to sell that house and getting the four kids to agree on the price and to even agree whether it's sold or not. 

More complex yet, is imagine one of those four kids dies, becomes disabled, ends up in a nursing home, gets divorced, get sued, or goes bankrupt?  In all of those scenarios the "simplicity" of just transferring the house to the kids is no longer simple and no longer cheap. 

Other challenges occur if the asset is not the home, but rather other assets that mom and dad need to live on.  Transferring needed assets to the children now puts all of mom and dad's lifetime of assets and security in the hands of their children.  Assuming the children are "good kids" and continue to allow the parents access to those assets is a far cry to begin with, but even if the children were cooperative, the children are still subject claims they have no control over such as lawsuits, their own poor health, their own death, or a divorce.  Imagine the child the assets were transferred to who dies of cancer or a car accident and now mom and dad's assets are owned or controlled by the "daughter-in-law". 

Obviously lawyers who just routinely transfer assets to another party have not considered the significant disadvantages and more importantly risks to the client.  So what are we to do about it? 

The first and most important thing for us to do is to continue to educate by blogging, delivering presentations, workshops, seminars, and other ways to be the proper educators of the public and always professionals as to the pitfalls of transferring assets to children.  The second and more important thing is to perhaps educate our fellow attorneys by sending newsletters, or even committing to doing a CLE at your local bar association.  Don't take this lying down, clients need our support.  Get involved and protect clients by ensuring their assets are not transferred out of their control during their lifetime!

For more information on estate planning, asset protect, medicaid planning and VA benefits planning, join us in St. Louis from June 1st-5th.  It's everything you need for your estate or elder law practice on education, marketing, operations and team development (you can check out the jam packed agenda here). Make sure to register today as some sessions have limited space.  This event is not to be missed if you practice in the estate planning arena! 

David J. Zumpano, Esq, CPA, Co-founder Lawyers With Purpose, Founder and Senior Partner of Estate Planning Law Center

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Registration For LWP’s Tri-Annual Practice Enhancement Retreat Is OPEN!

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal MarketingLegal TechnicalMedicaidSystems & ProcessesTeam Building

Molly here from Lawyers With Purpose.  Just a quick heads up that we’ve opened the doors to register for our Tri-Annual Practice Enhancement Retreat, happening June 1-5 in St. Louis, MO.

Blog_taper (1)You won’t want to miss the opportunity to attend one the industry’s most in-depth training programs for Estate and Elder attorneys (and their teams!), focused on helping you:

  • Freshen up on your legal/technical knowledge and discover new lucrative offerings to weave into your current business model;
  • Stay up-to-date on changing laws and best practices that affect your business;
  • Learn how to host consumer-focused presentations, effortlessly fill the room and master the art of “speaking to sell;”
  • Implement guerilla marketing strategies for any budget that work right away to fill your calendar with high quality estate or elder law clients;
  • Develop your legal team into efficient and productive staff members who come to the office each day excited to serve your clients with excellence, become your greatest evangelists in the community and love your practice as if it were their own.

It’s a weeklong event with many different trainings and focus sessions to choose from based on YOUR unique needs and the needs of your staff members.  Here’s just a little taste of some of the focus sessions and programs offered:

  • Mastering The Business of Law -  A roadmap to increasing office efficiency and revenues.
  • Adding Insurance Services To Your Law Practice
  • Train the Trainers: Speaker School- Learn a more strategic way to give presentations that leaves audience members rushing to the podium after your talk to sign up to work with you!
  • Legal/technical training, including: General Medicaid Laws & Rules, Penalty Period Scenarios, Crisis Planning, Debrief of VA Benefits, Trust Fundamentals, Design Strategy, Strategic Planning for Qualified Assets and more.
  • Converting Prospects Into Paying Clients– Mastering Client Attraction and Retention, Enrollment with Initial Contact and Initial Meeting and Value Proposition Pair Practice.

Click here now and register today to make sure you reserve your spot!  The full agenda is now live for your viewing. 

This is your chance to learn from some of the most respected and successful leaders in estate and elder law. These are attorneys that have grown their practices to seven figures and beyond, are doing what you want to do and will openly show you their secrets and how to duplicate their success without costly learning curves or trying to sell you something. 

We promise you’ll be ready to hit the ground running with new strategies and plans for explosive growth your first week back in the office! 

Jump ahead now to view the full agenda and decide what portion of the program you’d like to attend… or again, consider joining us for the FULL week.

Have questions?  Just email me at mhall@lawyerswithpurpose.com and let me know what’s on your mind.  I’m happy to personally jump on a call with you and walk you through your options.

Hope to see you in St. Louis!

Molly

Don’t wait: http://retreat.lawyerswithpurpose.com/

 

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3 Things To Consider When Planning For Clients Over $10 Million

by with No Comment Asset ProtectionEstate Planning Drafting Software

Recent statistics indicate only 2 out of 1,000 clients have a federal taxable estate.  While it affects only two‑tenths of a percent of the population, it is something attorneys come across that creates confusion in how best to plan.  So, the first question to consider is how much over $10 million dollars a client’s estate is, which will dictate the type of planning strategy to use.  Generally, there are three estate tax planning strategies utilized.  One strategy is to utilize annual gifting to maintain the client's current asset level.  This approach is effective for those who are just below or just above the limit and have sufficient number of beneficiaries to gift the excess each year.   The second strategy is to "freeze" the value of a client's estate at its current value so that all further growth of the estate happens outside the estate. This strategy is typical when a client has assets that are expected to grow aggressively.  And finally, the third strategy is to reduce or eliminate taxes for individuals who are over the $10 million limit significantly.  Let's examine each approach. 

Bigstock-One-Two-Three-Numbers-On-Dice--36582055Strategy One: Clients attempting to maintain their current estate can do outright gifts utilizing an estate tax focused irrevocable trust.  This trust utilizes the “Crummey Power” to use the client annual gift exemption of $14,000.00 per person per year.  Assets funded are removed from their estate.  A critical distinction for this type planning is that the individual has enough beneficiaries to distribute the growth in their estate each year.  For example, a typical $10 million estate that grows 5 percent a year would need to dispose of $500,000.00 each year.  That would require 36 beneficiaries to distribute $14,000.00 to each year (or on their behalf to a Crummey trust) or 18 beneficiaries if the client is married and both husband and wife distribute each year.  If the client does not have enough beneficiaries to distribute to, then maintaining the size of the estate using this approach, will be difficult.  The attorney, however, can’t approach this planning in a bubble and must look to the type of assets in the estate to determine how rapidly it appreciates.  For example if $5 of the $10 million is real estate that increases minimally in value or maintains its value given the current real estate market this strategy. The strategy may allow the client to maintain their current value but if you believe the real estate (or other assets, like a business) are going to appreciate significantly you may want to consider the second approach.

Strategy Two:  The second strategy is to freeze the estate value by conveying away to a trust or other entity assets currently owned by an individual and utilize a client’s lifetime gift tax exemption (same as estate tax amount).  This strategy ensures all future growth on assets transferred will grow outside of the client’s estate. A business owner client with a company currently worth $2 million, but the client believes might be worth $5 to 10 million in a few years, would benefit from utilizing part of their lifetime exemption now (the $2 million dollar value) in conveying away business ownership so when it grows to $5 or $10 million, it’s outside their taxable estate.  The same is true of investment-based assets that a client expects to grow.  This strategy may require the client to forever give up all rights to their assets, but depending on legal documents used, the client may be able to maintain control and even derive the benefit from their assets by use of promissory notes and management fees.  A technique to add to the freeze approach is to utilize discounting techniques that currently achieve a 30 to 40% discount on the value of any gift made.  This allows individuals to convey away $5 to 10 million of assets but only have to use $3 to $6 million of their $10 million lifetime exemption.  When combining these strategies, reduction by using discounting techniques also “freezes” the value of those assets that have been transferred in the transferor’s estate. 

Strategy Three: The final strategy to eliminate estate tax is accomplished through the use of charitable strategies.  Charitable strategies can be used during lifetime or after death to “zero out” the estate taxes if a client's charitable intentions align with the planning strategy.  Ultimately, if significant assets are conveyed to a charity the client has created (typically a private foundation) which the family still controls and benefits their community with. Charitable techniques can be used during life to reduce the estate tax and income tax!  In addition, charitable planning through use of testamentary charitable lead trusts can reduce the estate to the maximum exemption and eliminate an estate tax.

So what do you want to do for a client over $10 million?  I choose to focus on clients under $10 million as I find them to be more enjoyable and more open to the planning strategy and I co-counsel with attorneys that keep up with the technicalities of techniques to achieve the estate tax savings.  The complication of advanced tax strategy requires a full focus by the attorney who understands the distinctions between these planning strategies and the overall goals of the clients.  Be prepared to know these techniques or be able to worth with someone who does, if you intend to plan in this area.

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