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FREE WEBINAR: Rushing To Beat The VA 3 Year Look Back Law Changes?

January 30, 2015

by Lawyers With Purpose with One Comment Uncategorized

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.

SPECIAL GUEST BLOG: “We Fight Back!”

January 29, 2015

by Lawyers With Purpose with No Comment Asset Protection

Lawyers With Purpose welcomes guest blog and Tri Annual Practice Enhancement Retreat sponsor, David A. Weintraub, P.A. "Many Stockbrokers and Investment Advisors Take Advantage of Senior Citizens. We fight back!"

The sad truth is that not all stockbrokers and investment advisors are ethical. While many are very ethical and do the best they can for their clients, others give ill-advised or inappropriate advice, and sell high commission, high risk products, that are not suitable for your clients. Much of this predatory behavior is at the expense of senior citizens – your clients – who are unaware of the consequences of these unethical and illegal practices.

We fight back against these predators. We protect the interests of those who have been taken advantage of by unscrupulous investment advisors. We hold them accountable for their actions and strive to compensate their victims for their losses.

We look forward to meeting you next week and working with you to help your clients recover losses they should never have incurred.

For more information about David Weintraub’s practice, please click here. David was also recently mentioned in the elder abuse related article you can find here: http://www.sun-sentinel.com/local/broward/pembroke-pines/fl-pines-century-village-financial-20150122-story.html

Lawyers With Purpose cannot wait to be in the room with all of our member and vendors next week in Charlotte for our Tri Annual Practice Enhancement Retreat! Safe travels and we'll see you soon.

Roslyn Drotar – Coaching, Consulting & Implementation, Lawyers With Purpose

The Veterans Administration Proposes 3 Year Look Back On Gifts

January 28, 2015

by Lawyers With Purpose with 3 Comments Asset Protection Estate Planning Drafting Software Legal Technical VA

On Friday, January 23, 2015, the VA issued proposed new Veterans Administration regulations that would penalize wartime veterans up to ten years for making gifts of assets for less than fair market value. The VA is trying to stop what they perceive as lawyers and financial advisors “taking advantage of veterans” when helping them strategically plan to preserve assets and qualify for the Improved Pension benefit.

The proposed changes in regulations would:

Establish a 3 year look back for gifts
Impose penalties for up to 10 years
Create a bright-line net worth standard of $119,220, which includes annual income
Deny any expenses related to independent living facilities as care costs
Require Veterans to sell their home place property if the lot coverage exceeds 2 acres.

How will this work? When a veteran or widow of a veteran applies for the Improved Pension with Aid and Attendance, the VA will ask if any transfers of assets for less than fair market value have been made in the three years prior to the application. If so, the VA will presume it was for the purpose of meeting the VA eligibility standards.

Penalized gifts include gifts of money or assets to children or others, establishing estate plans with the use of trusts, and establishing retirement plans through the use of annuities which can provide a life time income stream.

When a gift has been determined to have happened during the look back period, the VA will calculate the penalty by dividing the value of the gift by the claimant’s pension rate with aid and attendance. Each classification of claimant varies, thus, the penalty periods will be different depending on who makes the claim. The pension rates with aid and attendance are as follows:

(1) Married veteran = $2,120

(2) Single veteran = $1,788

(3) Widow = $1,149

Thus, if a married veteran gives away $15,000 and a widow gives away $15,000, the widow is penalized almost double that of the veteran. (Married veteran $15,000 divided by $2,120 = 7 month penalty; widow $15,000 divided by $1,149 = 13 month penalty.)

Also, because the “net worth” standard will include income, high income earners will be allowed to have low to no savings for emergency items; whereas, very low income earners will be permitted to keep much more in savings. Because of the strict ruling on how the VA plans to define “medical care,” veterans who have dementia, Alzheimer’s Disease or other degenerative diseases and live in independent living facilities because they no longer drive and need a safe environment in which to live, will not be eligible for the benefits because they may not yet the hands on care for bathing, dressing, eating, toileting or transferring (ADLs). Although they are unsafe to live at home due to their health care condition of cognitive decline, the VA refuses to consider any expenses of care for a facility as deductible from the claimant’s income unless the claimant needs assistance with no less than 2 ADLs.

Between 2012 and 2014, Congress introduced two different bills, each imposing a three year look back penalty. Both bills were died. Nevertheless, the VA is moving forward on their own to create the look back and penalties. These changes will not only hurt wartime veterans, specifically WWII and Korean war vets, but it will further exacerbate the enormous claims back logs that already exist.

To fight this from happening, everyone who cares about a veteran must respond. Public comments must be received no later than March 24, 2015 and can be sent through 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.”

If are in the Charlotte NC, area, or will be attending our Practice With Purpose Program or our Tri Annual Practice Enhancement Retreat, consider joining Victoria for her Specialty Program on Wednesday, February 4th, and get your initial VA Accreditation through the VA. If you provide legal advice to Veterans about specific VA claims, to include drafting asset protection trusts for VA Benefit qualifications, you MUST be accredited by the VA. Contact Molly Hall at mhall@lawyerswithpurpose.com for registration information.

** Before attending this course, you must have submitted an Application for Accreditation, VA Form 21a, to the Office of General Counsel and received approval.

This Monday…. (tomorrow)

January 25, 2015

by Lawyers With Purpose with One Comment Coaching & Implementation

Has your mood felt a bit low lately? The New Year isn’t kicking off quite as well as you had hoped? Well, I’ve got news for you – you’re not the only one!

I was reading one of my favorite blogs this a.m. by Kimberly Snyder and she mentioned that it turns out this coming Monday, January 26^th is “Blue Monday”. Blue Monday is purported to be the most depressing day of the year. The concept was first publicized as part of a 2005 Cliff Arnall, the Centre for Lifelong Learning, a Further Education center attached to Cardiff University, press release which claimed to have calculated the date using an equation of this milestone represents “the least happy day of the year.”

The formula; W=weather, D=debt, d=monthly salary, T=time since the holidays, Q=time since failing our new year’s resolutions, M=low motivational levels, and N_a=the feeling of a need to take action.

W= Weather. It’s still dark out. Although we’re moving further and further away from the shortest days of the year, our daylight hours haven’t yet extended to the point where most people can enjoy them after leaving the office at the end of the work day. Feels like Ground Hog Day.

D= Debt. Our holiday bills are due. Holiday gifts, trips and time off seemed like a good idea when you were filled up with holiday spirit, but the end of January means credit card statements are rolling in, and the financial reckoning is upon us.
d= Monthly Salary. Not Meeting Monthly Goal and its Tax time. The New Year is already looming with 11 months behind and its looming time to pay the tax man.
T= Time since Holidays. The parties are over. The family and friend gatherings have stopped. January is a month where Americans go into hibernation mode and we are spending more time alone that ever. And if our business calendars are empty and no strategic plan to change that around on the horizon, it feels a bit like solitary confinement.
Q= Time since failing our New Year’s resolutionsOur New Year’s Resolutions are failing. January 17th is the most common date to give up on your resolutions; it’s marked by Ditch New Year’s Resolutions Day. Unfortunately, only a fraction of those who make resolutions will achieve their goals, and those that don’t begin losing hope and resorting back to “It is what it is” mindset around this time.
M= Low Motivation Levels. And nothing to look forward to until Spring Break or sadly possibly a summer vacation. There is no accountability in place and no one holding your feet to your dreams. No signs of “help is on the way.”
N_a=The feeling of need to take action. “I know I must do something differently but I don’t have the time, money or energy to power down and make the investment in finding my way” is what I have been hearing from attorneys this month calling with a sense of terror. Some have been calling me for over two years with this exact statement. Doing the same thing over and over again and expecting different results.

Basically, we’re stuck inside, we’re further in debt than ever and we’re confronted with the reality that a “Goal” alone isn’t enough to create the practice we have been wishing for. Appears to be much like the fact pattern of this time last year for many firms I speak with looking to hear more about LWP.

Here is what I know to be true for a cure for the common law Practice: 4 days. Invest in 4 days to get in the room; “90% of success starts with taking the leap of faith and getting in the room.” Mark your calendar now for The Practice with Purpose and Practice Enhancement Retreat February 3-6 in Charlotte, NC.

Don’t let “I don’t have the time, money or energy to power down and make the investment to find the solution” be the default motto for 2015. Now is the time.

Molly Hall, Director Of National Enrollment, Lawyers With Purpose

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Essential Things For Your Bottom Line

January 22, 2015

by Lawyers With Purpose with No Comment Coaching & Implementation Systems & Processes

Are you tracking your closing rate? You should be, if only for self-evaluation. Your Pipeline Focuser™ will quickly show how many prospects became clients at each of your Initial and Vision Meetings™ If your closing rate average is lower than 70% you should investigate further.

A low closing rate is not always attributable to the attorney’s lack of skill in the Initial or Vision Meeting™ Sometimes the prospect just isn’t qualified to move forward. While it would be great if your staff could weed out those unqualified prospects before you invest your time in meeting with them, if they attended a workshop and you promised a complimentary Vision Meeting™ then you don’t have much choice.

However, if your closing rate is low and your prospects are largely not qualified, then consider investing time to improve your skills.

On the LWP member website, in the Vision Meeting™ folder (located in the Estate Processes tab), there are four videos designed to help you “close the deal.” Two of them deal specifically with boosting your closing rate by using the Vision Clarifier™.

Are you using the Vision Clarifier™? It’s the tool that visually demonstrates the solution to issues identified in the audit. If you’re skipping this tool, then you’re not visually demonstrating your recommended solution(s).

During the workshop, the attorney tells stories that are memorable, colorful and interesting. Using a PowerPoint presentation, the attorney is able to anchor stories that are easily visualized by attendees. Adding props such as the little red wagon and the dollar bill maintains interest in the illustrations.

At the subsequent Vision Meeting™ the attorney continues educating prospects in a one-on-one setting by connecting the workshop stories to the Estate Planning Audit™ and then demonstrating solutions with the “Vision Clarifier™, leading directly to the firm fee schedule.

This is where the “rubber meets the road.” The bottom line truly is do you believe in the solution you are recommending? Are you able to clearly see the value? If you are, you won’t hesitate when it comes to quoting your fee. That printed fee schedule you worked so hard to develop will boost your confidence and demonstrate to the prospect that you are not pricing based on his/her assets. You really do have set fees.

I invite you to track your own numbers. If prospects walk out of your office, “wanting to think about it,” the odds begin to dramatically decrease that they will become clients anytime soon. Being able to properly demonstrate the benefits of your proposed plan in that first meeting is a priceless skill. Putting in the time to hone and improve this skill will have exponential impact on your bottom line.

If you want to learn more about the Lawyers With Purpose Client Enrollment Process™, join us in Charlotte, NC, February 3rd-5th for our Practice With Purpose Program. There are only a few seats left so register today!

Nedra Catale – Coaching, Consulting & Implementation, Lawyers With Purpose

Annual Termination Of VA Aid & Attendance

January 18, 2015

by Lawyers With Purpose with No Comment Legal Technical VA

We just started a New Year and many recipients of the VA Pension with Aid and Attendance will lose their benefits this year. Why? Because of a letter VA applicants receive after they have been approved for benefits. The first letter, issued in January 2013, contained the news, originally given in a VA press release on December 20, 2012, that the annual Eligibility Verification Report (EVR) was no longer a requirement. For individuals who had experienced the “old” EVR process, this was quite exciting.

Why the excitement? The EVR was the yearly submission by the Veteran to update the VA with current income and medical expenses. It is a tedious task, both for our clients who had to keep records of all medical expenses and for law firms who cannot charge for these additional services. Foregoing this task saves time and stress.

Why did the VA discontinue the practice? According to the press release, the VA stated that the change allowed them to:

(1) Reallocate the staff who had processed the EVRs to instead tackle the compensation claim backlog, and

(2) The VA could now obtain current income information directly from Social Security and the Internal Revenue Service.

This sounds like a beautiful plan. However, in the absence of updated unreimbursed medical expenses (UME), which is what reduces the “countable income” to meet VA eligibility criteria, the VA will continue to use the last reported medical expenses when reviewing eligibility for ongoing years. This means that for any VA beneficiary whose medical expenses are just high enough to offset their income at the time of application, may have benefits terminated with future increases in income (cost of living adjustment increases, etc.). Therefore, while the VA says that it does not require annual reviews, it is important to meet with your VA benefits clients to assess changes in income and medical expenses that could impact receipt of VA benefits. The best time to meet is after the tax deadline of April 15 when it can be expected that your clients have gathered the prior year’s medical expenses in order to file their tax returns.

Use VA form 21P-8416 when updating medical expenses for the VA. The VA will consider UMEs submitted through December 31^st of the following year for the prior year’s “eligibility period” in which the UME was paid. For example, you have until December 31, 2015 to submit UMEs incurred and paid for during the calendar year 2014. It is not necessary to provide receipts of those medical expenses as long as the VA Form 21P-8416 clearly identifies the nature of the expense, the provider, the date, and for whom the expense was paid. Along with the 21P-8416 for actual unreimbursed medical expenses for the prior year (i.e. 2014), it is also recommended to complete an additional VA Form 21P-8416 with “projected” UMEs for the current year (i.e. 2015). These are both filed with VA Form 21-4138, Statement in Support of Claim, requesting that the VA consider these medical expenses. This should be submitted to the pension management center where you file your pension claims. You will generally only get a response from the VA to this submission when it requires a change in the monthly VA benefit; otherwise, the only indication that the submission has been received, considered and accepted is the continuation of the claimant’s monthly benefit.

Victoria L. Collier, CELA, Elder Care Attorney, Co-Founder of Lawyers for Wartime Veterans and Lawyers with Purpose, Veteran, author of 47 Secret Veterans Benefits for Seniors and most recent book, Paying for Long Term Care: Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit.

If you're interested in learing more from Victoria L. Collier, join us in Charlotte, NC, February 4th, where she will be LIVE in the room offering VA Accreditation. We only have a FEW SPOTS left so register NOW with Kyle Russ at kruss@lawyerswithpurpose.com.

SPECIAL GUEST BLOG: “Army Nurse Cadets – A Fight For Justice”

January 15, 2015

by Lawyers With Purpose with 2 Comments Uncategorized

We are proud to welcome Karen B. McIntyre, R.N., VA Accredited Agent, President of Veterans Information Services, Inc., Co-creator of VisPro Veterans Benefits Software and Co-founder of Veterans Advocates Group of America (VAGA) as a guest blogger for Lawyers With Purpose:

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WWII brought many changes and sacrifices to our American way of life. Amongst these was the loss of over 250,000 nurses nationwide to military duty, leaving a huge medical void within this country. The solution to this massive problem was the creation of the Victory Nurse Corps, which later became the Nurse Cadet Corps.

The Nurse Cadet Corps was created in 1943 in response to the Nurse Training Act, signed by President Roosevelt on June 15, 1943, which became Public Law 74 on July 1, 1943. It remained operational until 1948, providing 80% of all stateside nursing care by 1945. It offered promises of college nursing degrees while providing much needed medical care to our stateside soldiers and their families. Recruited from college nursing programs throughout the United States, these special nurses wore uniforms and the insignia of the Commission Corps of the Public Health Service, which President Truman declared to be a branch of the military in June, 1945. Residencies were completed at various hospitals during the War, including federal and military. With rank of Lieutenant or higher, these nurses fulfilled the requirements for active duty status and yet, Congress has repeatedly denied them Veterans benefits.

In 1997, the first bill to grant active duty status to these deserving nurses was introduced to Congress, but never made it out of committee. It was reintroduced in 1999, but again died in committee. By 2002, the bill was getting attention, but never made it to the House of Representatives; however, in January of 2003, the U.S. Cadet Corps Equity Act of 2003 (HR 476) was finally introduced to the House, but again to no avail.

H.R. 1718: the United States Cadet Nurse Corps Equity Act was introduced to the 112th Congress, 2011-2012, requesting that these Cadet Nurses be afforded the same privileges given to other active duty military personnel with regard to Veterans benefits. This latest bill has also been tied up in committee with no resulting votes related to it. To read more about this bill, go to https://www.govtrack.us/congress/bills/112/hr1718.

As the daughter of one of these Nurse Cadets, I find it absolutely appalling that our government continues to deny benefits to these deserving nurses. My mother wore the uniform of the Commission Corps of Public Health (declared a branch of the military by President Truman) and held the rank of Lieutenant. She was one of many nurses who worked day and night to save the lives of our stateside soldiers, my father being one of them. And yet, she was able to receive only reduced surviving spouse's Veterans benefits prior to her death in 2010, being denied full Veteran status on behalf of her own service.

My mother (as seen above in uniform) was only one of thousands of these nurses who have served this country with honor and selflessness. Unfortunately, they are a vanishing part of our history. Unless Congress acts soon, there will be none of these heroic "Veterans" left to collect their well-deserved benefits.

Guest Contributor for Lawyers with Purpose, LLC, Karen B. McIntyre, R.N., VA Accredited Agent, President of Veterans Information Services, Inc., Co-creator of the VisPro Veterans Benefits Software, Co-founder of Veterans Advocates Group of America (VAGA).

www.info4vets.com

www.vagamembers.com

If you are interested in learing more about starting, or expanding your VA Practice and need VA Accreditation, please join Victoria L. Collier on February 4th in Charlotte NC, for LIVE in the room training for VA Accreditation for just $249. Seats are limited and hotel cut off is Friday, January 16th so reserve your seat today! Contact Kyle Russ at kruss@lawyerswithpurpose.com for registration information.

** Before attending this course, you must have submitted an Application For Accreditation, VA Form 21a to the Office of General Counsel and received approval.

VA Pension Rates Finally Published

January 14, 2015

by Lawyers With Purpose with No Comment Estate Planning Drafting Software Legal Technical VA

Each year, with Congressional approval, Social Security and Veterans Benefits increase incrementally based on a cost of living adjustment increase. For 2015, that amount was 1.7%. For VA benefits, the effective date is December 1, 2014.

Even though those already getting the benefit received their increases, it was impossible for practitioners to advise applicants as to what rate to expect upon approval of a new application because the rates had not been published. As of January 12, 2015, the VA rates can be found at:

http://www.benefits.va.gov/pension/current_rates_veteran_pen.asp for veterans and http://www.benefits.va.gov/pension/current_rates_survivor_pen.asp for survivors (spouses and children).

For a quick breakdown, see below for both the annual and monthly amounts:

2015 VA Pension Rates – Effective 12/1/14

Veterans

Medical Deduction (5% of Maximum Annual Pension Rate) $643 (single) $842 (with dependent)

ANNUAL MONTHLY

Base Pension (single) $12,868 $1,072

Base Pension (w/ dependent) $16,851 $1,404

Housebound (single) $15,725 $1,310

Housebound (w/ dependent) $19,710 $1,642

A&A (single) $21,466 $1,788

A&A (w/ dependent) $25,448 $2,120

Surviving Spouse

Medical Deduction (5% of Maximum Annual Pension Rate) $431

ANNUAL MONTHLY

Base Pension $8,630 $719

Housebound $10,548 $879

A&A $13,794 $1,149

Two Vets Married to Each Other

ANNUAL MONTHLY

Base Pension $16,851 $1,404

One Housebound $19,710 $1,642

Both Housebound $22,566 $1,880

One A&A $25,448 $2,120

One Housebound and One A&A $28,300 $2,358

Both A&A $34,050 $2,837

If you want to learn more about expanding your VA practice, or starting a VA practice, Victoria Collier will be offering a LIVE VA Accreditation Course. She'll be teaching the necessary information for accreditation but also providing updates and practice tips based on current VA practices February 4th in Charlotte, NC. If you provide legal advice to veterans about specific VA claims, you MUST be accredited by the VA. Join us February 4th, where you'll LIVE in the room with Victoria L. Collier for your accreditation. Contact Kyle Russ at kruss@lawyerswithpurpose.com for registration information.

*Before attending the course, you must have submitted an Application for Accreditation, VA form 21a, to the Office of General Counsel, and received approval.

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Start At The End And Work Backwards

January 13, 2015

by Lawyers With Purpose with No Comment Coaching & Implementation Systems & Processes

To make sure I get things done, I create long lists, checking them off, and take my calendar out and schedule everything working backwards from where I currently am.

Perhaps that's why I am so sold on LWP's project planning tools. The project planners are built with the end project in mind, and help you and your team work backwards.

Any major project that you are contemplating — RMS, a Maintenance Program, a marketing plan — should begin with the Idea Focuser. Is this project worthwhile? What will be the benefit? What is the expected outcome and how will it impact the practice? Without a clear vision of the goal, you and your team will find it difficult to implement change.

Next comes the Implementation Focuser. The Implementation Focuser should ideally be used in a team session to identify areas of responsibility and anticipate and plan for potential roadblocks. The Implementation Focuser helps to break down the project into smaller steps and allocate responsibility and deadlines for each step.

If you're a Lawyers With Purpose member, these tools can be found in the Firm Resources Tab, in the Planning and Goal Setting Folder (if not, contact us so we can tell you more about them).

So, what's needed to successfully implement a new project?

1. A clear idea of the benefit of the project. What, exactly, is the anticipated outcome and why is this important? What will be the return on investment? After the anticipated work and cost of the project, what will be the payoff?

2. What will the finished project look like? Before the project is begun, every team member should have a clear view of all of the details of the finished project. What is the goal? What will success look like? How will it work? Who will be responsible for the continued well-being of the project once it is completed?

3. Anticipate the roadblocks, and allocate responsibility and deadlines. Plan for the bumps in the road.

4. Schedule weekly project reviews. This doesn't have to be an additional meeting. This can be covered during your weekly team meeting. But, be aware that responsibility without accountability will get you nowhere.

5. Celebrate milestones and completion of the project. Acknowledge team contributions and mark the date. Mark the date so that, going forward, you can track the impact your new project has on the successes of your firm. You may want to have before and after numbers in order to measure the success of the project.

If you and your team are contemplating the implementation of big projects in 2015, be sure to document your projects, and include your CC&I coach in the planning process.

If you would like to know more about Lawyers With Purpose and the tools we have to offer to help build and grow your estate or elder law practice, join us in a few weeks in Charlotte, NC, for our Practice With Purpose Program. We still have a few spots left so register today!

Nedra Catale – Coaching, Consulting & Implementation, Lawyers With Purpose

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Creating A Law Firm Marketing Budget

January 8, 2015

by Lawyers With Purpose with No Comment Legal Marketing

Creating a marketing budget is an important piece of your marketing plan. The goal is to create a realistic plan of action to help improve revenue, and determining your spending is an important part of that process.

Without a budget, you can overspend – or fail to spend enough – on your marketing. There are three steps to creating a marketing budget:

Organize your financial information
Determine where to spend your marketing dollars
Set up reports and make adjustments

Let's dig into each step to spell out what is involved.

STEP #1 – ORGANIZE YOUR FINANCIAL INFORMATION

You have to understand your finances first. You need to know how much money your company makes on a monthly basis and the variations that might exist. This step will take time, but it’s important, because you cannot create a realistic budget based on estimated numbers.

This is why in CCI we push so hard for a monthly goal with the Revenue Focuser tool. Although income can vary significantly throughout the year, you must organize the information based on reliable revenue.

Reliable revenue is the minimum amount of money your company makes each month. For example, if you range from 5k to 7k per month, any amount over 5k cannot and should not be added to the budget because it is not reliable.

Now you need to take that reliable revenue number and subtract your monthly expenses. This is your rent, office supplies, keeping the lights on, payroll, and any other overhead. A realistic budget will focus on income that exceeds the expenses, not the total revenue that comes in. This is your disposable income. When you have determined the amount of disposable income, you will need to decide where that money will go. Marketing is only one area you need to consider, of course. You also need to put some of this money aside for unexpected costs and future growth.

Divide up that disposable income based on the goals of your firm. So, for example, if your immediate goal is to get more prospects in the door, you would put your money into the marketing budget. You will want to put off hiring until your client base is bigger.

If your goal is to hire someone to increase your bandwidth, then put more of your disposable income into growth and set aside less for your marketing budget.

If you don’t have disposable income, your marketing budget is 0. You need to hit the RMS to fill your pipeline, which is a different conversation. Eighty percent of your time needs to be out eyeball to eyeball, developing relationships.

These are the main considerations when you’re deciding what you will consistently be putting toward your marketing, so this is what you’ll need to nail down.

STEP #2 – DETERMINE WHERE YOU WANT TO SPEND MARKETING FUNDS

After you know the amount available to spend on marketing, the next part of creating a solid budget is to organize how you’ll be spending that money. Three main factors contribute to how to spend marketing funds: (1) the size of your budget; (2) your past experience; and (3) where you can reach your target market.

Let’s start with (1), the size of the budget. If you have a small budget, you’ll want to start with small print ads, online ads, social media and email advertising to bring in new clients. A larger budget would include radio or television ads to hit a wider range. So be responsible with the size of your budget.

Then (2), past experience – what has or hasn’t worked for you in the past? If you noticed that promoting your workshop with newsletter and small print ads brings in leads, then do it again and again. Keep that in your budget. Even if you have the means for more expensive alternatives, continue to commit to the things that work.

Finally (3), decide where you can reach your target market. Start this process by writing down a description of who your target market is. For most of us, it’s the baby boomers and sandwich generation. And think about which media they use. For baby boomers, it’s more than likely a locally circulated paper. But for the sandwich generation, what websites do they frequent, and how can you be relevant on the social media they use? Write down where they are and this is where you should be advertising.

If you are testing something new – a good rule of thumb is to start with a smaller budget and test the waters before making a larger financial commitment. After you determine if it will work, you can add more funds into that new marketing channel or opportunity.

STEP #3 – REVIEW YOUR TRACKING AND REPORTING! WEEKLY! AND ADJUST!

The final step is to analyze the data. Look at what’s working and what’s not working. From there you should make adjustments to improve revenue. Anything with marketing needs to be tied to generating revenue. If it doesn’t generate revenue, remove it altogether and try something new.

Knowing this information, and looking at your reporting weekly during your marketing meeting, is the most important part of maintaining your marketing budget and plan.

You must looking at past performance and know with certainty whether revenue has increased, decreased or stayed the same. You should be able to tie each of your marketing dollars and efforts to what you’re tracking and reporting. Make adjustments for things along the way. Increase your budget on the things that are working. Pull the plug on the things that are not working.

Having a marketing budget is not enough. You have to be able to take action based on your reporting.

Your budget helps you avoid overspending on your marketing and holds you accountable for taking advantage of opportunities and cutting off the things that aren’t working so you can put the money someplace else. That helps you find the best solutions to meet your business goals.

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Roslyn Drotar – Coaching, Consulting & Implementation – Lawyers With Purpose