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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.

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.

There are three categories of Veterans Benefits:

1. Health Care through the Veterans Health Administration,
2. Compensation for Service Connected Disabilities through the Veterans Benefits Administration; and
3. Improved Pension for Wartime Veterans (or their Widows) through the Veterans Benefits Administration.

Types two and three above are tax free, monthly financial payments to the claimant (Veteran or Widow).  Compensation is designed to pay for the “loss” the Veteran suffered due to an injury, illness or disease incurred or aggravated because of their service.  The claimant’s income and asset values are not considered when applying for Compensation.

In contrast, eligibility for Improved Pension is directly related to how much the claimant makes in income and how much they have saved in assets.  Assuming the Veteran meets the military criteria and is disabled (age 65 and above), the claimant must also meet the income and asset standards. 

The asset limit is roughly $80,000, excluding the home, personal belongings and vehicles.  Many Veterans have in excess of $80,000, but also have very high medical expenses quickly depleting their assets, leaving them with no other option but to move to a nursing home and apply for Medicaid. The strong desire to maintain a scintilla of quality of life and remain in one’s home, creates the situation where people want to preserve some of their assets and still qualify for VA Benefits.  In the Medicaid benefits universe, the use of Special Needs Trusts is available for certain classes of trust beneficiaries.

That begs the question, are Special Needs Trusts Permitted for VA Benefits Improved Pension cases?  Before answering the question, it is important to understand that there are two different types of Special Needs Trusts. There are “First Party” and “Third Party” Special Needs Trusts (SNT).  A first party SNT is funded with the money from the person who has the disability, who is also the creator or grantor.  A third party SNT is created and funded by a person on behalf of another person (i.e. a parent for a child). 

In 1993, the Omnibus Budget Reconciliation Act (OBRA 93) was established.  OBRA 93 codified that assets placed into an irrevocable trust would still be counted as an asset for Medicaid purposes if there are any circumstances where payment from the trust could benefit the individual.  However, OBRA 93 also made two very clear exceptions. 

(1)   Individuals who are under the age of 65 and disabled, may create a first party SNT and retitle their assets to the SNT and the assets would be sheltered and exempt from Medicaid eligibility.

(2)   Assets held in a third party SNT for the benefit of a person receiving Medicaid are exempt from eligibility. 

There is no statutory law that prohibits or permits the funding of a SNT for VA purposes.  The creation and the funding is not actually the issue though. Rather, whether the principal funds inside the SNT is “countable” when applying for the VA Improved Pension (with Aid and Attendance) benefits is the issue.  The only authority to answer this question is a VA Office of General Counsel Opinion, VAOPGCPREC 33-97, dated August 29, 1997, well after OBRA 93 was enacted.

In the opinion, the VA recognizes that OBRA 93 made changes to the trust laws; however, the opinion is completely void of any acknowledgement or understanding of the two exceptions related to special needs trusts.  The VA opined that the assets in a special needs trust are “countable” when applying for Improved Pension.  Further, the VA made no distinction between first party or third party trusts, even though the case at hand was a first party trust created by a widow of a veteran. 

Due to what appears to be the VA’s lack of understanding or deliberate ignorance of special needs trust laws and the desire to rule against the claimant, advocates are left with one opinion from which to provide legal advice to clients.  The assets in a special needs trust are countable. 

There is good argument to have the opinion overturned for third party SNTs. However, the claimant must be willing to endure a lengthy appeal.  An attorney who agrees to take the case to an appeal must be prepared to argue before the Unites States Court of Appeals for Veterans Claims, or higher.  Lack of having a willing claimant and an experienced attorney is likely the reason this bad law is still on the books today.  Until challenged and overturned, the VA Office of General Counsel Opinion will remain the law of the land.

If you want to learn more about VA Benefits Planning & Accreditation, join me in Charlotte, NC, February 4th for a Live VA Course.  I'll be teaching the necessary information for accreditation, providing updates and practical tips based on current VA practices.  For registration information contact Kyle Russ at kruss@lawyerswithpurpose.com.

Victoria L. Collier, Certified Elder Law Attorney, Fellow of the National Academy of Elder Law Attorneys, Co-Founder, Lawyers with Purpose, LLC, Co-Founder, Lawyers for Wartime Veterans, LLC and author of 47 Secret Veterans’ Benefits for Seniors…Benefits You Have Earned but Don’t Know About.

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

Many clients wonder if their non-qualified annuities are “safe” from their creditors and predators.  The quick answer is no.  Not only can general creditors and predators gain access, the loss of an annuity to long-term care cost is common.  In either event an annuity is an asset that is subject to the risk of creditors.  The most common strategy, to avoid loss of annuities to creditors is to annuitize them.  While this protects the annuity, it takes away the value of the underlying asset and converts it to an income stream which also can be attacked. 

An annuity can be protected from nursing homes and general creditors, without annuitizing it, by putting it into an irrevocable pure grantor asset protection trust.  It permits the grantor to be trustee retaining full control in management of the annuity.  In addition, the client gives up minimal rights that ensures full protection underlying annuity without having to annuitize it or liquidate it.  Should the client ultimately need the income stream generated by the annuity they’re still given the right to annuitize or take periodic distributions without annuitizing it.  See full legal analysis and client benefits of iPug™ protection trust. 

The beauty of utilizing an IPUG trust is by changing the ownership of the annuity to the trust instead of the client, there is no tax impact as an irrevocable pure grantor trust is a grantor trust for income tax purposes and utilizes the client’s Social Security number as its tax I.D. Under the tax law, no transfer of ownership has occurred and no tax generated, but, asset protection is achieved. 

The distinctive planning strategy continues by naming a proper beneficiary of the annuity, not just changing the ownership.  As a standard practice the trust should be named beneficiary to ensure all of the protections granted by the trust.  In addition, it allows distributions to be made to beneficiaries other than the grantor, to ultimately achieve the goals of the client for their estate plan.  Protecting clients annuities without causing taxation and not having to subject clients to early termination penalties are great benefits of transferring annuities to an iPug™ trust rather than having to liquidate or annuitize them.

If you're interested in a FREE webinar on iPug Business Planning click here to register today to:

• Learn the difference between General Asset Protection, DAPT Protection, Medicaid Protection and iPug® Protection
• Review a comprehensive outline of the 2 primary iPug® Business Protection Strategies
• Learn why clients choose single purpose Irrevocable Pure Grantor Trusts™ over LLCs
• Learn how it all comes down to Funding

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

Don’t wait until the last minute to take your required VA accreditation course. Frantically searching for an organization putting on an event or for a recorded session you can download. Instead, take control and attend Victoria Collier’s live VA Accreditation training on February 4, 2015 in Charlotte, NC.

Victoria always brings cutting edge information about what the VA is doing now.  In addition, whether you need you initial accreditation or on-going CLE to maintain your status, this course will meet both goals. 

Make 2015 a year when you complete this task early so that you won’t need to worry about it for another 24 months. 

Don’t wait until the last minute to take your required VA accreditation course. Frantically searching for an organization putting on an event or for a recorded session you can download. Instead, take control and attend Victoria Collier’s live VA Accreditation training on February 4, 2015 in Charlotte, NC.

Victoria always brings cutting edge information about what the VA is doing now.  In addition, whether you need you initial accreditation or on-going CLE to maintain your status, this course will meet both goals. 

Make 2015 a year when you complete this task early so that you won’t need to worry about it for another 24 months. 

We've only got 30 seats left so reserve your spot now.  Contact Kyle Russ at kruss@lawyerswithpurpose.com to register today.  You don't want to wait, this event will sell out!

Lawyers With Purpose

Estate planning law firms have “special needs” when it comes to practice management systems. The primary challenge for estate planning firms is dealing with the complexity of the law in multiple jurisdictions, the effects of government programs such as the Veterans Administration and Medicaid, and the cross-over with financial and tax considerations.

This complexity is often too much for individual firms, and as a result the estate planning legal community has organized itself into groups where intellectual property, best practices, and expertise can be shared.

Much of the shared intellectual property has been captured in document automation templates using technologies like HotDocs. However no standard has been established as a suitable container for best practices and workflow. Firms would typically use different systems for matter management, document assembly and accounting/billing. Not only is this costly and complex but it also requires double (or triple) data entry. This is clearly not an ideal situation, and the estate planning organizations have been struggling with this problem for years.

Enter Lawyers with Purpose (LWP)…

LWP is an excellent example of an estate planning and elder law organization that provides significant value to its members through education, coaching, best practices, and shared intellectual property and document automation tools. However the challenge remained on how to deliver all this value in a comprehensive and easy-to-use manner.

Until Now.

LWP and Actionstep

Over the last few years LWP and Actionstep have been working closely together to incorporate the LWP workflows and document templates into the Actionstep cloud-based practice management system.

The combination of Actionstep and LWP is a match made in (cloud) heaven, for a number of reasons:

1  Actionstep’s flexible workflow underpinning makes it a natural container for the LWP best practice workflow processes;

2  Being a “cloud” solution means that members to not have to install any local software or infrastructure and software and process updates happen automatically;

3  Actionstep integrates directly with HotDocs on the “cloud” so all the historical intellectual property contained in Hotdocs templates runs seamlessly within the matter files and eliminates the need for firms to have local versions of HotDocs; and finally

4  Actionstep is a complete practice management system that ties everything together, and includes sales and marketing with matter management, document production, finance and accounting in a single application. So no more double (or triple) data entry.

Cloud computing is rapidly transforming many traditional industries, and there is no shortage of examples. Think of airline bookings, banking, postal services, and landline phones. What LWP and Actionstep have put together is truly transformational and one can’t help to think that this will be the shape of the estate planning arena in the years to come. Exiting times!

Click here to join me in a Live Demo and Q&A THIS Wednesday, December 10th at 4:30 EST.

Ted Jordan – ActionStep CEO

Members!  Remember our ActionStep webinars are EVERY WEDNESDAY from 12 – 1 EST!

What is ActionStep?  The first and only cloud based law practice system for estate and elder law attorneys in America.  

Below is the outline of topics to be covered.  Please be sure to get these webinars in your calendars.  They will be recorded and added to the member site if you are unable to attend live.

For registration information please refer to the information posted on the LWP Member ListServ or contact Marci Otts at motts@lawyerswithpurpose.com.

Webinar #4: December 3, 2014

Reporting – Learn how to enter data correctly in order to generate reports to help track business

Webinar #5: December 10, 2014

Open Forum – Question and Answer Session about what has been covered in the first 4 weeks

Webinar #6: December 17, 2014

RMS – Learn how manage your professional workflows to generate RMS reports 

Webinar #7: To Be Announced due to Holiday Schedules

Maintenance – Learn about Maintenance Matter workflows and how to manage clients once they opted into the program.

Block out these dates on your firm calendar and start "ActionStepping" into the future. ActionStepping into the future is about getting your team and business updated and prepared to move into the future of technology and create a clear path and plan for everyone in your estate planning / elder law practice.

Roslyn Drotar – Lawyers With Purpose, Coaching, Consulting & Implementation & Social Strategist. 

“Never ruin an apology with an excuse.” 

– Benjamin Franklin

Here’s a little secret for creating the life and business you want: STOP apologizing. Stop beating yourself up for wanting what you want and declaring it out loud.

The week following the LWP tri-annual practice enhancement retreats, our firm CCI calls are full of energy. Everyone has a crystal-clear understanding that, if we just stay intentionally focused on our Top 5 from our Money Plan™, we will launch our practice into the business we have been striving for. There is no doubt in our minds that we will get there. And we know how we will get there and who is doing what to get us there. But the following month, we notice there’s a bit less gas in the proverbial tanks. Folks show up to the calls explaining that their #1 Money Plan item isn’t in full swing, and we begin to hear versions of why: “I’ve been trying to get an update on where we are with getting the brochure out there, but Sarah is behind with drafting and I’m feeling maybe I put too much pressure on the team.” Or, “Our goal was five Medicaid applications for November, but I’m seeing that I don’t understand the MMMNA entirely so I should get that down before I start walking into nursing homes.”

The above scenarios are all versions of Apologizing.

It’s that simple. It’s the “human stuff” that stops us.  It’s our past, habits, patterns, lack of rules of engagement, and our lack of accountability and the freedom to speak and act honestly.  Realizing and correcting this tiny little secret will create the life and business you want. Getting stuck in the apology vortex shows up in various ways, not always in the verbal format of “Sorry.” You’ll see it more often than not in these situations and ways of being:

1. Habit: Many of us were raised to be polite and put others first. Parents who teach taking responsibility for any problems or issues that come up, or who teach that apologizing is a form of politeness, will often breed over-apologizers. Sometimes a child will learn this just by witnessing one parent say “sorry” too much to others.  This typically shows up with a pre- and post-qualifier of “I’m sorry” with really no statement or justification after it. These words just come out before and after almost every statement they make. “I’m sorry, but I didn’t find that funny.” They walk past you in the hall and say “I’m sorry” and you’re not even sure why or for what.
2. Self-Defeat: I don’t feel like I’m good enough, so I’m going to make sure you know I’m aware of it but have a plan to turn it around. Maybe you show up carrying an extra 40 pounds when, at the last retreat, you were down 20. So before you can even get the hellos and hugs out, you protect yourself from judgment by making an apology about who you are and who you are not. This usually shows up with a pre-qualifier along the lines of “I’ve been so busy….”
3. Seeking Reassurance: You need to get community input before you take action. The idea was great at the time we declared it. I was clear on what was being asked of me and what I needed to do, but once I got back to my desk, it all went out the window. I began to second-guess myself and became paralyzed.This usually shows up with a pre-qualifier of, “Well, I needed to double-check with you before I started, because this one thing wasn’t totally clear….
4. Fear of Conflict: We are clear in the beginning about what we want. Everyone is nodding their heads in agreement and excitement. Yet when we meet the following week, they have done very little. I want to explode (and I have in the past, but the whole team shut down and I was the bad guy). They are working on so many things and doing some great stuff in other areas, so I should just let this one go until next week. Let them catch up on their work and bring it up next week.This usually shows up with a pre-qualifier of “I don’t mean to complain but….”

People will persistently test your apology meter. Quite often it’s a byproduct of their own “stuff” when it comes to pursuing (or not) their own BHAGS (Big Hairy Audacious Goals). Don’t get caught up in living your life through the lens of others’ habits and limiting beliefs. Most often they are completely unaware of them.

Lori Deschene, author of the “Tiny Wisdom” eBook series, said, “While we can never know other people’s intentions, we can recognize that our words influence our state of mind – and apologizing when we’ve done nothing wrong needlessly creates guilt and undermines our confidence. It can also create an imbalance in our relationships, since it tells other people we think we are always responsible for any potential conflict or miscommunication; and also sends the message that we’re more interested in being agreeable than being honest.”

Today, if you find yourself apologizing repeatedly, ask yourself, “Did I actually do something that sincerely requires an apology?” If not, ask, “Do I really want to communicate that I think I did?”

Let me know how you make out; I would love to hear from you.

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.