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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.

Estate 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. 

How to "Protect Your Stuff in 3 Easy Steps" not only gets clients but transcends every aspect of your law business. Learning how to design workshops to be the center of your entire value proposition to the marketplace is essential in getting clients to not only hire you but never think twice about paying you more than your “competition” down to the street.

“How to Protect Your ‘Stuff’ in 3 Easy Steps" the NEW LWP Client Enrollment Workshop is being unveiled in a 4 hr. specialty program led by Dave Zumpano.

In this 4 hour Specialty Workshop you will learn how to:

• Ensure there are butts in the seats
• Set expectations for prospects
• Demonstrate your values
• Transform complex legal technical into simple stories clients relate to
• Enroll lifetime clients instead of just document creation
• Measure the effectiveness of stories
• Evaluate and enroll into action: A.C.T.
• Understand the difference between having planning vs. having documents
• Open, deliver the message, and close a workshop
• Deliver your personal story to connect

All LWP Members will leave with the NEW “How to Protect Your ‘Stuff’ in 3 Easy Steps" complete workshop package (handouts, PPT, overheads, speakers notes, evaluations, marketing materials, video of the workshop and audio transcription of the stories) that gets you from lead generation, to presentation, to lead conversion.

Don’t wait to register, the program is limited to 40 registrants and seats are filling up!  Click here to register today!

Molly L. Hall, Co-Founder, Lawyers with Purpose, LLC, and author of Don’t Be a Yes Chick: How to Stop Babysitting Your Boss, Transform Your Job and Work with a Dream Team Without Losing Your Sanity or Your Spirit in the Process.

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. 

Strategy 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.

If you want to learn more about estate planning and elder law and growing your practice, join us in St. Louis from June 1st through June 5th.  We'll be spending 3.5 days on all you need to know about Asset Protection, Medicaid and VA Benefits Planning.  If you practice in the estate and elder law arena, you DO NOT WANT TO MISS THIS week long event.  

Join some of your most successful and forward-thinking peers from around the country at this program where we will discuss, discover, and provide solutions for Legal Technical, Operations, and Marketing.  Click here to register and grab a seat now.

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

“How do I prepare to have “that” conversation with her?” We hear this all the time on the LWP Coaching, Consulting & Implementation (CCI) calls with our member and team alike. We get several emails each week with a subject lines such as “Confidential” or “Do you have a minute to hop on a call” or “I need help”. 

Confronting performance problems, giving honest (tough) feedback, being honest about smoldering conflicts, delivering “bad” news: these are the looming conversations that keep you up at night, or that you wake to in the morning. They occupy your mind while you’re trying to get the “important” work done. Your monkey mind runs rapid all day with, “How am I going to bring it up?”, how you’ll deal with the other person’s reactions, how they will take it, what they will feel, the impact on the business, the clients, and so on and so on. For bosses, team, co-workers equally.

And when you finally do bring it up, it usually occurs at the wrong place, wrong time and without intentional preparation.

It doesn’t have to be this way any longer. But how do we get unstuck with best practice skills for high-stakes interactions?

One of the building blocks (along with People Styles/People Skills™, MIFy™, Go D.U.M.B.™ and Power-In-Partnership™) for the LWP communication technique was New York Times business bestseller  “Crucial Conversations: Tools for Talking when Stakes are High”.  At the kick off the Tri-Annual Practice Enhancement Retreat General Session on Wednesday afternoon June 3^rd we will lead you through a 90 Minute workshop on how to take the learning of Power in Partnership™, Crucial Conversations and Crucial Accountability and provide you with the necessary tools to prepare for high-stakes conversations to transform frustration, stonewalling, suffering in silence  into powerful dialogue, and make it safe to not only talk about anything as a team but create real time breakthroughs.

The techniques you will walk away with will leave you entering your practice on Monday morning ready to improve the organizational health of all relationships in your business; team, referrals and clients alike.

To register for this weeklong event focused on estate and elder law, click here.  You can check out the full agenda, and below is just a little peek of what you'll discover at this practice transforming event:

• Train The Trainer Speaker School
• Specialty Program "Protect Your Stuff"
• Practice With Purpose Program
• Tri-Annual Practice Enhancement Retreat 
• Focus session options for (1) technical legal (2) marketing (3) team development

Click here now and register today to make sure you reserve your spot!  If you practice in today's estate planning environment, you don't want to miss this week long event guaranteed to impact your practice. Register and let us know your attendee list by April 15th for a chance at our Early Bird Prizes.  You'll have a chance to win one of three $150 Visa gift cards! 

Molly L. Hall, Co-Founder, Lawyers with Purpose, LLC, and author of Don’t Be a Yes Chick: How to Stop Babysitting Your Boss, Transform Your Job and Work with a Dream Team Without Losing Your Sanity or Your Spirit in the Process

What is the greatest success you’ve had since joining LWP?

This is hard to answer if I was to narrow it to just one success.  Setting up several clients with RLT that places them right where they want to be provides for a lot of satisfaction.  Or helping a client, after a nursing home completely messed up a Medicaid application and then we get it all straighten out.  Finally, building lasting relationships with several Financial Planners helps provide a nice road to the future.

What is your favorite LWP tool?

Once again this is hard to narrow down.  Putting into effect the RMS system has not been that easy for me but working my way through it has provided me with a great tool to build upon.  However the LWP software is an invaluable component to allow other team members to be a part of the process.

How has being part of LWP impacted your team and your practice?

This is two-fold (not surprising based upon my earlier answers).  First LWP has provided a way for me to build a team and incorporate them into my practice.  Secondly, LWP has given me a way to not only build my practice but to also to operate a business instead of just practicing law.

The Tri-Annual Practice Enhancement Retreat is right around the corner and will bring together the most brilliant minds in the estate planning arena for five full days!

We would say “Save The Date” but what you really need to do is grab your spot NOW.  You can either hear about the event after it’s over, or you can join your community of LWP members and their teams, “front and center” and take advantage of this opportunity to participate, network and learn in the room.

CLICK HERE for the full agenda and CLICK HERE for the registration form.   Complete and return the registration to kruss@lawyerswithpurpose.com now to reserve your firm’s seat by 4/15 and qualify for a chance to win one of our early bird prizes.

Pssst….. Look real close at the full agenda.  We’ve made some changes to the program and have included some stuff that we’re really excited to bring to the community.

"Close your eyes & jump! The LWP Process will catch you."

~ Doug O.

"Hard to explain, but it is a way to practice the law, and have a life that can be all you want it to be."

~ Connie A.

Lawyers With Purpose 

Many lawyers I coach complain they don't have enough time to get everything done.  Interestingly, I remind them the most successful people in the world have the same amount of time in a day as they do. How do they do it?  I've been practicing law for 20 years and the last 17 as a solo practitioner.  I've grown my practice from me and a secretary to a firm with over 20 employees, including five lawyers.  I can honestly say that's not for everybody.  I never expected it, it’s where I ended up. I will share the time-saving strategies I utilized to grow my practice. Join me in a one hour webinar:

Thursday March 12^th at 4 PM EST and then again at 7 PM EST “Having the Time to Have it All – Three Time Strategies to Have a Practice with Purpose and Profit”

You don't have to have a large practice to succeed, but you do need to get control of your time so you have enough of it to satisfy all the needs of your practice and your personal life. Most lawyers I work with are being pulled in so many directions based on different marketing schemes of the individual organizations that recruit them. Many attorneys belong to multiple organizations, including one for estate planning, one for Medicaid, one for VA, one for special needs planning, one for asset protection, and yet another for tax planning. And then wonder why they don’t have time to keep up with it all. Don't get me wrong, each organization has value, but the challenge I've always found is there is always a lack of time to get it done.

Should you attend?  If you are struggling with a work-life balance, struggling with how to run a law "business," or feel you do not have enough time in your day to get all the work done, then this webinar will be a great use of your time. Click here to register for this special webinar.

In one hour, I will share with you the three key time strategies to have the time necessary to provide estate planning, elder law, asset protection, Medicaid, VA Benefits, special needs and tax planning all in the same time you have now.  I look forward to sharing with you.

Hope you don’t miss,

David J. Zumpano, CPA, Esq.

Practicing Attorney, just like you &

Founder of Estate Planning Law Center & Lawyers with Purpose LLC

We would like to welcome David A. Weintraub of Strockbroker Litigation as our guest blogger:

How well do you really know the Financial Advisors that you are referring to?  Well enough to know that you are not at risk for being sued for making a negligent referral?  If you are not really sure, you owe it to yourself and your clients to review the Financial Advisor’s CRD.  Obtaining a CRD is easy, and free.  After obtaining the broker’s CRD number from FINRA’s website, one can download a redacted version of the CRD. 

The redacted version of the CRD differs in several respects from an unredacted version.  First, the redacted version does not provide the name of the investors who have complained about the broker.  Second, the redacted version will not reflect bankruptcies that occurred more than ten years ago.  It will only reflect recent bankruptcies.  Third, the redacted version will not reflect whether the broker ever failed licensing exams.  The easiest way to obtain an unredacted CRD is through the Florida Office of Financial Regulation.  One can send an email to electronic_licensing@fldfs.com or Samantha.chambers@flofr.com .  In the email, request the broker’s entire CRD, including a full legacy report. 

If all this is too much trouble, I will be happy to obtain the CRD for you. For my article, Use Care When Referring Clients to Professionals, go to http://www.stockbrokerlitigation.com/wp-content/uploads/2013/05/DAW-Article.pdf .

David A. Weintraub, Securities Arbitration Lawyer, Strockbroker Litigation

Now that the Veterans Administration has published proposed changes in the laws regarding the Improved Pension with Aid and Attendance program, which would impose a three year look back for transfers of assets, to include the purchase of annuities, lawyers are asking, “will any transfers made before the changes take effect be grandfathered in?”  Presumably the desire would be to wrap up any pending cases and get them filed with the VA prior to the law change.

First, we don’t actually know when the laws will change. What we do know is that the proposed changes are detailed in the Federal Register at the following link: 

https://www.federalregister.gov/articles/2015/01/23/2015-00297/net-worth-asset-transfers-and-income-exclusions-for-needs-based-benefits?utm_campaign=subscription+mailing+list&utm_medium=email&utm_source=federalregister.gov.

Second, we DO know that the Public Comment period EXPIRES on March 24, 2015.  To send comments in opposition of the law changes, send them to  http://www.regulations.gov or by mail or hand-delivery to: Director, Regulation Policy and Management (02REG), Department of Veterans Affairs, 810 Vermont Ave. NW., Room 1068, Washington, DC 20420; or by fax to (202) 273-9026.  Comments must include that they are in response to “RIN 2900-AO73, Net Worth, Asset Transfers, and Income Exclusions for Needs-Based Benefits.”

Third, with regard to advising clients, based on the proposed changes, we know with reasonable certainty that if the laws change, any application filed after the changes will be subject to a three year look back, with up to 10 years of penalty for transfers of assets.

The main question is, what about the pending claims that were filed prior to the changes? As currently written and proposed, there is no grandfather language included. In fact, there is no language at all as to the effective date of the changes. THIS is one area that you could send a public comment on to influence change.  When Congress introduced two bills that would impose a look back, Congress included that the changes would be effective one year after the President signed the bills.  The VA should do the same.

To learn more about the changes the VA plans to impose that will harm our nation’s veterans and their widows, please join me for a webinar:  VA Proposing 3 Year Look Back: What Can We Do? on Monday, February 2, 2015 at 12:00 EST. Click Here To Register. 

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 and Lawyers with Purpose.