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Seven Business Lessons from Celine Dion

by with 2 Comments Coaching & ImplementationEstate Planning Drafting Software

While on business in Las Vegas, I was at dinner with friends and colleagues sharing our dreams. I mentioned that the one thing I would love to do while in town was to see Celine Dion perform at Caesar’s Palace. Before I knew it, I had fourth row center seats for the show the very next night. I was so excited and ready to be entertained. Surprisingly, Celine’s performance also taught me a tremendous amount on how to really run a business. The lessons below are listed in order of how I recognized them during the concert, but in no other order of priority.

Bigstock-Vector-illustration-of-realist-90391868The LessThe Lessons:

  1. Give it your all! With every song (every client), put everything you have into that relationship. As far as the client knows, they are your only client and want your full attention to every detail. Celine would not sing one song really great, then only half-heartedly sing another. She poured everything she had into every song.
  2. Be passionate. It is clear that Celine loves performing and puts a lot of emotion into her shows. As estate planning and elder care attorneys, we meet people who are desperate for our services. The least we can provide is an appearance that we are passionate about what we do and how we do it. After I give seminars, I frequently get comments such as, “I can really tell you love what you do.” And it is true. When you are passionate about what you do, the client can tell and it really enhances their experience.
  3. Take necessary breaks.   The concert was no more than two hours, yet Celine must have taken at least four breaks. During her breaks, she would change clothes and get ready for the next set of songs. She would recharge and show up differently, but with the same passion and energy. As lawyers, we have the opportunity to take mini-breaks between clients to recharge. On a larger scale, we should be taking vacations throughout the year. I hear from lawyers fairly regularly, “I haven’t taken a vacation in five years.” My first question is, “Why?” Without taking breaks, it is nearly impossible to give it your all because you are exhausted and running on nothing.
  4. Get comfortable with being personal and vulnerable. Celine’s husband has cancer and is dying. She has just returned from taking a year off from the stage so she could be with him. They decided it was time for her to return to her audience. Being away from him scares her, and she shared that with us before singing a really emotional song. Our clients share a lot of sensitive information with us about their families and their lives. How can we share ourselves with them in a meaningful way? At appropriate times, we can share our stories. During my seminars, I always mention that my father died at the age of 68 with congestive heart failure. It shows that I, too, have been a caregiver and understand losing a family member. Find a way to be personal with your clients.
  5. Give more than expected. All good lawyers can draft documents and put an estate plan together. It is the great lawyers who do more, and give more, than what the client paid you to do. When the concert is over, the last song is sung, the lights go out. The audience lingers and hopes for something more, one more song. The great performers oblige, as did Celine, coming back to sing signature songs. Not all performers do. Not all lawyers do. What is your signature piece? When we sign estate planning documents, we always give our clients a special “pen in a box” that has our firm’s information on it. But the pen is different from the ones I regularly hand out like candy. This new pen is a different color and in a box presented at the end in a ceremonious manner. It is giving more than expected.
  6. Have fun and enjoy what you do. Showing up and giving it your all every day is difficult work. It can suck the life out of you if you don’t enjoy it or find ways to have fun. While performing, Celine shocked the crowd and walked down the aisle singing and taking “selfies” with audience members. It was clear she was having as much fun as the audience, really creating a memorable experience for all. When my law firm is on retreat together, we always make sure to take silly pictures and enjoy an evening together.
  7. Have strong backup support. We all know who we are going to see for the night: Celine Dion! But Celine is not the only one on stage; she has an abundance of support around her. Moreover, while she was backstage on break changing attire, she had performers continuing to keep us entertained in her absence. It is no different for us as attorneys. Our team keeps our clients “entertained” in our absence. Our client services coordinator is our opening act, and our estate planning and government assistance paralegals keep our clients happy while we change attire. In my office, my team even shows up on stage to deliver our workshops. Who do you have for support so you can give it your all, be passionate and take breaks to rejuvenate?  

Celine Dion is amazing and I highly recommend seeing her performance if you find yourself in Las Vegas. Between now and then, you too can be amazing and give your clients the best show in town. With so many to choose from, taking these lessons from Celine Dion can really help you stand out from the others and leave your clients feeling special.

It’s time to stop just "thinking" about becoming a Lawyers With Purpose Member.  Becoming a member will forever change your practice.  You owe it to yourself to spend a few minutes reading through this page: www.joinlwp.com.  Join us in 2016!  And of course if you have ANY questions or concerns, just pick up the phone and call Molly Hall at 877-299-0326 x 102 and hammer out anything holding you back.  

Victoria L. Collier, Co-Founder, Lawyers with Purpose, LLC, www.LawyersWithPurpose.com; Certified Elder Law Attorney through the National Elder Law Foundation; Fellow of the National Academy of Elder Law Attorneys; Founder and Managing Attorney of The Elder & Disability Law Firm of Victoria L. Collier, PC, www.ElderLawGeorgia.com; Co-Founder of Veterans Advocates Group of America; Entrepreneur; Author; and nationally renowned Presenter.

 

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Irrevocable Trusts After Divorce

by with One Comment Asset ProtectionDavid J. ZumpanoEstate Planning Drafting Software

Many clients I come across as an estate planning attorney have been married for 30 or more years. I recall once when a couple who had been married for 37 years came into my office to engage in estate planning. I encouraged them to plan for remarriage if either of them died. They both giggled and laughed and said, oh my gosh, how silly. We don't need that. We're very confident in each other that each of us will take care of our kids and not be influenced by a new relationship.

In a weird twist of fate, six months after completing their plan, the husband came back in with a blonde bombshell 20 years his junior at his side. He explained to me that, soon after executing the plan with us, his wife contracted cancer and died within three months. Now, three months after that, he had this newfound “friend,” and he was asking me to change his trust to make her a beneficiary and not his children. I reminded him of the planning he and his wife set out, and he was adamant to say, “Nope, we decided we could do whatever we wanted.” Unfortunately, his version of whatever he wanted and his wife’s were different for me than they were for him.


Bigstock-Couple-And-Gavel-91627817Needless to say, I refused to do the work; he fired me and found another lawyer to make his modifications. The LWP™ Client Centered Software has extensive remarriage planning options – but it also has provisions to address if a husband and wife that we did estate planning for decide to divorce before they die. I've had this happen on a couple of occasions.

The key question you must ask yourself in this situation is, what type of planning did the client do? If your client did traditional estate planning consisting of wills, healthcare proxies, powers of attorney or a revocable trust, then it becomes critical after a divorce to amend those plans to accommodate each spouse’s new goals separately. But, what if your married clients did an irrevocable asset protection trust as part of their planning?

In the Lawyers with Purpose Client Centered Software (LWP-CCS) system, the traditional trust we would use to protect against creditors, predators and to ensure the client is eligible for Medicaid and other needs-based benefits is an IPug®, which is an Irrevocable Pure Grantor Trust®. If you think about it, an IPug trust or other asset protection trust is set up to protect against creditors and predators and to ensure that the client is eligible for state-funded long-term care benefits should the need arise. But what about protecting from each other? A properly drawn IPug protection trust provides the terms for a divorce. The trust clearly identifies the beneficiaries of the irrevocable trust during the couple’s life and after their death. Interestingly, the LWP-CCS has a customized divorce provision in the trust that ensures that, if the grantors divorce, the trust bifurcates and all of the terms and provisions related to each spouse apply to them in the separate trusts. Further, the provision eliminates all references to spouse, and thereby creates the trust for the other beneficiaries as if the spouse were deceased. So, the question becomes, what does it mean when the trust bifurcates and thereafter is managed in accordance with all of the other trust term provisions? That's where the drafting of your IPug trust becomes critical.

In the LWP-CCS trust system, you are able to customize the contributions of each spouse and include them on separate and/or joint schedules. In addition, the question of whether you design the trust to separate a deceased spouse's assets for the benefit of the surviving spouse will be critical in determining what happens in the case of a divorce. By separating assets into two schedules, bifurcated trusts are created.  Each spouse then manages his or her funds through the bifurcated trust.  This ensures that, when a spouse passes a way, all assets of the individual deceased spouse will be allocated to the separate bifurcated trust, thereby sheltering said assets from the living spouses subsequent remarriage and divorce.  The trust further includes protective provisions regarding divorce for the trust beneficiaries through the disability panel, specific bequests and other customizations.

So, as estate “planning” attorneys, we must not only be concerned about protecting the assets from our client's remarriage after the loss of their spouse, we can also ensure that proper divorce planning is accomplished at the same time. Hey, like Prego spaghetti sauce, it's in there. The LWP-CCS has you covered. Hopefully they'll never have to use it, but for those few times it happens, it's nice to know there'll be one less thing to worry about.

Many clients I come across as an estate planning attorney have been married for 30 or more years. I recall once when a couple who had been married for 37 years came into my office to engage in estate planning. I encouraged them to plan for remarriage if either of them died. They both giggled and laughed and said, oh my gosh, how silly. We don't need that. We're very confident in each other that each of us will take care of our kids and not be influenced by a new relationship.

In a weird twist of fate, six months after completing their plan, the husband came back in with a blonde bombshell 20 years his junior at his side. He explained to me that, soon after executing the plan with us, his wife contracted cancer and died within three months. Now, three months after that, he had this newfound “friend,” and he was asking me to change his trust to make her a beneficiary and not his children. I reminded him of the planning he and his wife set out, and he was adamant to say, “Nope, we decided we could do whatever we wanted.” Unfortunately, his version of whatever he wanted and his wife’s were different for me than they were for him.

Needless to say, I refused to do the work; he fired me and found another lawyer to make his modifications. The LWP™ Client Centered Software has extensive remarriage planning options – but it also has provisions to address if a husband and wife that we did estate planning for decide to divorce before they die.  I've had this happen on a couple of occasions.

The key question you must ask yourself in this situation is, what type of planning did the client do? If your client did traditional estate planning consisting of wills, healthcare proxies, powers of attorney or a revocable trust, then it becomes critical after a divorce to amend those plans to accommodate each spouse’s new goals separately. But, what if your married clients did an irrevocable asset protection trust as part of their planning?

In the Lawyers with Purpose Client Centered Software (LWP-CCS) system, the traditional trust we would use to protect against creditors, predators and to ensure the client is eligible for Medicaid and other needs-based benefits is an IPug®, which is an Irrevocable Pure Grantor Trust®. If you think about it, an IPug trust or other asset protection trust is set up to protect against creditors and predators and to ensure that the client is eligible for state-funded long-term care benefits should the need arise. But what about protecting from each other? A properly drawn IPug protection trust provides the terms for a divorce. The trust clearly identifies the beneficiaries of the irrevocable trust during the couple’s life and after their death. Interestingly, the LWP-CCS has a customized divorce provision in the trust that ensures that, if the grantors divorce, the trust bifurcates and all of the terms and provisions related to each spouse apply to them in the separate trusts. Further, the provision eliminates all references to spouse, and thereby creates the trust for the other beneficiaries as if the spouse were deceased. So, the question becomes, what does it mean when the trust bifurcates and thereafter is managed in accordance with all of the other trust term provisions? That's where the drafting of your IPug trust becomes critical.

In the LWP-CCS trust system, you are able to customize the contributions of each spouse and include them on separate and/or joint schedules. In addition, the question of whether you design the trust to separate a deceased spouse's assets for the benefit of the surviving spouse will be critical in determining what happens in the case of a divorce. By separating assets into two schedules, bifurcated trusts are created.  Each spouse then manages his or her funds through the bifurcated trust.  This ensures that, when a spouse passes away, all assets of the individual deceased spouse will be allocated to the separate bifurcated trust, thereby sheltering said assets from the living spouses subsequent remarriage and divorce.  the trust further includes protective provisions regarding divorce for the trust beneficiaries through the disability panel, specific bequests and other customizations.

So, as estate “planning” attorneys, we must not only be concerned about protecting the assets from our client's remarriage after the loss of their spouse, we can also ensure that proper divorce planning is accomplished at the same time. Hey, like Prego spaghetti sauce, it's in there. The LWP-CCS has you covered. Hopefully they'll never have to use it, but for those few times it happens, it's nice to know there'll be one less thing to worry about.

It’s time to check out what becoming a Lawyers With Purpose Member would look like for you and your practice. If you’re even at all curious about what we offer in the Lawyers With Purpose program and how becoming a member will forever change your practice, you owe it to yourself to spend a few minutes reading through this page: www.joinlwp.com.  Make a change in your practice for 2016 and join us!

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

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Skilled Nursing at VA Expense

by with One Comment Asset ProtectionEstate Planning Drafting SoftwareLegal TechnicalVA

“But I won’t ever need Medicaid. I’ll be in a VA nursing home.” You may have heard this before from a client in your attempts to consider the possible need for Medicaid in a veteran’s estate planning. Hopefully the client will never require skilled nursing care, but the reality is that the VA will only pay for or subsidize veterans who need nursing home care due to a service-connected disability or any vet with a combined service-connected disability rating of 70% or more and who need skilled nursing care. The VA only provides nursing home care for individuals in other categories IF beds and resources are available.


Bigstock-medicine-age-support-health-99310196First, what do we mean by skilled nursing care and what exactly is a VA nursing home? Medicare.gov defines skilled nursing care as “Care given or supervised by registered nurses. Nurses provide direct care; manage, observe, and evaluate a patient’s care; and teach the patient and his or her family caregiver.” It goes on to say, “Any service that could be done safely by a non-medical person (or by yourself) without the supervision of a nurse isn’t skilled nursing care.” Title 38, Chapter 1 of the Code of Federal Regulations, which relates to the VA, defines a nursing home as:

(1) Any extended care facility which is licensed by a State to provide skilled or intermediate-level nursing care,

(2) A nursing home care unit in a State veterans' home which is approved for payment under 38 U.S.C. 1742, or

(3) A Department of Veterans Affairs Nursing Home Care Unit. [38 CFR 3.1(z)]

The first type of nursing home is one not affiliated with the VA at all. These are private facilities, and probably the majority of nursing homes in which your clients may reside are of this kind. The second type of nursing home is a state veterans’ home that is owned, operated and managed by the state, but must be formally recognized and certified by the VA on an ongoing basis. The state, however, determines the criteria for admission, even though the facility may receive funds from the VA to help subsidize the cost of care to veterans. The third type is what is commonly called a VA nursing home, even though the VA doesn’t call them nursing homes anymore. The VA introduced the term “Community Living Center” and seeks to make the nursing home as much as possible like a real home.

As stated earlier, only veterans with both a documented need for skilled nursing care and who have a service-connected disability that meets certain criteria will qualify for this care at a VA nursing home at no charge. Veterans with non-service-connected disabilities and veterans with lesser-rated service-connected disabilities can apply as long as they require skilled nursing care, but they may be subject to long-term care co-payments.

There are also some other limitations if your client insists on a VA nursing home. There are far fewer of these than the other types of nursing home, and thus there might not be a VA nursing home in your client’s geographical area. State Veterans Homes are fortunately much more common. You can find a directory of State Veterans Homes at the website of the National Association of State Veterans Homes at http://www.nasvh.org/StateHomes/statedir.cfm.

Furthermore, you can’t just decide you are going to a VA nursing home, even if you believe you meet the level of care and rating requirements. There is a process to be evaluated for VA nursing home care. You must first be enrolled for Veterans Health Benefits, which is another process in and of itself and can include an evaluation of income and assets. For example, veterans with non-service-connected disabilities applying for extended care or the Nursing Home Care Unit may be required to complete the VA Form 10-10EC to determine the family's current income and assets. Then, once enrolled with the Veterans Health Administration, you must then be evaluated by a primary care provider or a geriatric specialist for nursing home care.

Another limitation of VA nursing homes is that they generally only accept veterans and not surviving spouses. Some State Veterans Homes do admit surviving spouses and even parents, but that depends on the state. For example, California has veterans assisted living facilities and skilled nursing facilities that will admit spouses, but California also has aggressive estate recovery policies to recoup state funds used to pay for those facilities. Finally, veterans who qualify for VA nursing home care may not always remain qualified. Veterans may be discharged from a VA nursing home without consent when VA nursing home care is no longer needed; for example, if the veteran's needs can be met at home or in a private nursing home close to the family.

If, despite all these hurdles, your client still wants to explore skilled nursing at VA expense or any other long-term care resources of the VA, visit the VA’s webpage at http://www.va.gov/GERIATRICS/index.asp to find information related to geriatrics and extended care.

As we approach the end of the year, we want to personally tell you how thankful we are to have you as a subscriber of the LWP Connection blogs and newsletter. Whatever the reason is that you stay connected with us each week via email (i.e. substantive law training, marketing assistance, practice management tips)…we are glad you are here

Yet, as you work on your practice goals and plans for 2016, please know that the guidance and mentorship you receive here is only THE TIP OF THE ICEBERG of what we offer at LWP.

We want these same results for YOU in 2016!  It’s time to check out what becoming a Lawyers With Purpose Member would look like for you and your practice. If you’re even a little curious about what we offer in the Lawyers With Purpose program and how becoming a member will forever change your practice, you owe it to yourself to spend a few minutes reading through this page: www.joinlwp.com.

Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC and Director of VA Services for Lawyers With Purpose.

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 with Purpose; and Co-Founder of Veterans Advocate Group of America.

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I Never Expected This

by with No Comment Asset ProtectionDavid J. ZumpanoLegal Marketing

Recently I finished my first book, “Protect Your IRA: Avoid the Five Common Mistakes.” It was a project I've attempted to do for years, but quite honestly I wasn't prepared for the strategic by-products that came from it. Most interesting was the impact it had on those closest to me – my family – who don't know the details of what I do. They were intrigued by how the book took very complex information and made it simple to understand. After reading it they said, “Wow, I didn't know you dealt with all that stuff.”


3DBook_ProtectYourIRA-Victoria-FrontThe other surprise was how it landed on the professionals I work with. After reading the introduction and closing, they felt as if they were part of the book with me because of the commitment in the book to having professional alliances to help clients attain their goals. Coworkers were also intrigued, and pointed out that as many times as they've heard me say the things that were in the book, they never understood it as a whole, organized in the fashion it was, with such poignant points for clients to understand. In fact, they even suggested it will make them more competent in talking to clients on this very complicated issue of IRAs. Finally, the client’s response after reading it was, “Do I need to get in and get a checkup? Am I all set?”

While this reflection shares the impact my book had on me, the most exciting part is that it can have the same impact on you as a joint author. We've had dozens of attorneys use this book in their community to derive the same benefits and insight that I have been able to derive from it. If you're a Lawyers With Purpose member, and these benefits are something you're looking for in your practice, I encourage you to go to www.lwpirabook.com to find out how you can be a co-author of “Protect Your IRA: Avoid the Five Common Mistakes.”  If you aren't a member (this is just one of the hundreds of benefits you do get by being an LWP member) just pick up the phone and talk with Molly Hall at 877-299-0326 x 202 to learn more about becoming a member and launching your book project!

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

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You’re Doing It Anyway…

by with No Comment Coaching & ImplementationDavid J. Zumpano

So you've done an estate plan for a client, you've created a will, a healthcare proxy, a power of attorney or even a revocable or irrevocable living trust. And all is well. The client is happy, you've completed your work and you move on to your next client. Inevitably, a month or two down the road you get a call from that happy client with a "quick question." That's where it all starts to go downhill.

The client asks the quick question, which, after you clarify, does not have a simple answer. Usually, your solution sounds something like, "Well, I would have to look to see what your trust says, and you may have to modify it," or, "Well that's simple, all you have to do is ABC, 123." The trick is, do you charge your client for the answer to this "quick question?" Most lawyers don't, and if you do, you might run into a different expectation with your client, who thought it was “included." If you're not careful, it can be a no-win situation.


Bigstock-Writing-Your-To-Do-List-102901823So what do you do? The best solution I have found is to engage my clients in a maintenance program. At Lawyers with Purpose, we have our TLC™ Maintenance and Fee Guarantee Program, which allows clients to pay a small annual fee and have access to us year round for their "quick questions." In fact, we even notify them when there are changes in the law and invite them in no less than once a year in group sessions to discuss the changes and allow them to opt to modify their planning to accommodate the new laws.

Along the way during the year, clients can call with any questions that come up, as can their financial advisors and tax advisors. While many lawyers view this as burdensome and time-consuming, consider the opposite – that it turns your transactional relationship with your clients into meaningful long-term relationships, making it likely that they will refer more clients. In addition, when we are taking calls from clients' financial and tax professionals, it's actually a wonderful marketing opportunity. They come to know of our unique asset protection planning strategies and get comfortable with us. They can see how we work, and that encourages them to work with us.

In the 15 years I have had my maintenance program, I can assure you that it has been a great experience for not only our clients, but for us. We actually have two social gatherings a year – one in the summer and one during the holidays – and they are well-attended. Clients ask if they can bring friends and/or family and encourage them to do planning with us so they can join our maintenance client community. We also have quarterly specialty workshops in which we invite outside experts to talk on topics requested by our clients, and each session is recorded and put on the special maintenance member-only section of our website. Our clients feel special, and our maintenance family has grown to almost six hundred families.

The best part of the maintenance program is that it's actually profitable. We charge $595 per year for this all-access benefit. When you multiply it out by hundreds of families, it's quite profitable, as all of the work is done generally in group sessions. In addition, it keeps you connected with your clients and ensures that their plan actually works because, as their life changes, you are able to modify the plans to accommodate them.

The one area you need to guard against with a maintenance program is overtaxing your staff with maintenance work in any given week. Doing so can really crash your short-term cash flow, but you always have access to the maintenance monies that traditionally come in during January and sit in your bank account as a "savings" to finance any new projects or growth you want during the year, or to subsidize the cost in a month where there is excessive maintenance work needed.

So, you're getting calls from clients anyway, why not do it in an organized fashion and turn it into a relationship-building experience for your clients and their financial and tax professionals. Let Lawyers with Purpose show you how.  Join me on Friday, December 18th at 2 EST for a FREE webinar on "The Most Profitable Planning You'll Ever Find: For Year End & Year Begin" just in time to kick off 2016 with fierce momentum. Click here to register now and kick start 2016. If you're an LWP Member – you've already got access to these tools – just reach out to your implementation coach or members services on where you can find it on the members website.

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

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Submitting Medical Expenses to the VA

by with 4 Comments Asset ProtectionVA

Why submit medical expenses?

When applying for Wartime Pension benefits through the Veterans Administration, the claimant must meet both income and asset limitations. Practitioners focus mostly on reducing assets to qualify; however, the claimant’s income must also meet the income standard. A claimant’s yearly family income must be less than the maximum annual pension rate (MAPR) amount set by Congress for any particular year to qualify. Unlike transferring assets to qualify, a claimant cannot transfer income in order to reduce or eliminate it for VA purposes. Sometimes the only way to reduce countable annual income for a claimant is to provide documentation to the VA of allowable medical and dental expenses to offset that income. Considering how medical expenses play a crucial role is critical to a successful claim.


Bigstock-Soldier-And-Doctor-Shaking-Han-81987851What medical expenses may be submitted?

Not all medical expenses are considered allowable by the VA. The medical or dental expense must have actually been paid by the claimant or claimant’s spouse and be unreimbursed by insurance or any other source, and it may be incurred by any member of the claimant’s household, and even by non-dependents in some cases. The VA provides the following list of examples of medical expenses that might be considered in their instructions for VA form 21P-8416:

  • Hospital expenses
  • Doctor's office fees
  • Dental fees
  • Prescription/non-prescription drug costs
  • Vision care costs
  • Medical insurance premiums
  • Monthly Medicare deduction
  • Nursing home costs
  • Hearing aid costs
  • Dental fees
  • Home health service expenses
  • Expenses related to transportation to a hospital, doctor, or other medical facility

The VA Adjudication Manual gives a more detailed list of common allowable medical expenses in M21-1MR, Part V, Subpart iii, Chapter 1, Section G.42.c. From the total annual medical expenses that the VA considers, only that part which is more than 5% of the maximum rate of pension for your particular claimant may be deducted from income. Thus, you must always consider this deductible when seeking to offset income with medical expenses. The Lawyers with Purpose VA Qualification Worksheet automatically makes this calculation for you.

The VA must consider all expenses that are directly related to medical care, even though this care does not necessarily have to be provided by a licensed health professional. This applies most notably in the case of home health care when the “VA has rated the disabled person (beneficiary or Veteran’s spouse if the Veteran is dually entitled to compensation of at least 30 percent) entitled to A&A or Housebound,” M21-1MR, Part V, Subpart iii, Chapter 1, Section G.43.d.

When to submit medical expenses

Medical expenses should be submitted to the VA at essentially three different times: at the initial application stage, and once approved, after the end of any particular calendar year and whenever there is a significant change in medical expenses. There are two categories of medical expenses that the VA recognizes: prospective and actual medical expenses that are related to when you submit medical expenses. Pursuant to the VA Adjudication Manual M21-1MR, Part V, Subpart iii, Chapter 1, Section G.44.d, “normally, medical expenses are deducted from an award after the fact, based on the claimant’s report of expenses actually paid. However, under 38 CFR 3.272(g), medical expenses may be allowed prospectively if the claimant is paying recurring nursing home fees or other reasonably predictable medical expenses.” When you first apply for VA benefits, you should submit prospective medical expenses for the 12-month period following the effective date. Unfortunately, nowhere is it defined what is considered “reasonably predictable,” and this determination is left to the discretion of the individual adjudicator. In my firm’s experience, the VA will often not consider prescription costs, incontinence supplies, or over-the-counter medical supplies or medications as “reasonably predictable” recurrent monthly medical expenses.

After approval of VA benefits, all actual medical expenses may be submitted for the VA’s consideration. You have until the end of any year to submit actual medical expenses for the prior calendar year. You only need to submit actual medical expenses each year if you are relying on those actual expenses to offset income. If the recurring medical expenses are sufficient to offset the claimant’s income, there may be no need to update the VA annually regarding actual medical expenses. The only other time you should submit medical expenses to the VA is when these change significantly. An increase in medical expenses may not make a difference in the amount of benefits paid but should be reported to the VA nonetheless. A decrease in medical expenses may mean a reduction or even termination of benefits, thus it is important to notify the VA as soon as possible regarding a decrease in order to avoid a potential overpayment of benefits.

How to submit medical expenses

The main application forms for non-service-connected pension – the VA forms 21-527EZ and 21-534EZ – both have small sections for reporting medical expenses. However, there is one specific VA form used exclusively for medical expense submission: VA form 21P-8416 “Medical Expense Report.” You are, however, not required to notify the VA of medical expenses using this particular form. As long as your submission includes the specific purpose for which the payments were made, the amount paid, the date paid, the name of the provider, and for whom the expense was paid, that is sufficient to constitute notification. Generally the VA will accept notification of medical expenses without supporting documentation like receipts unless the adjudicator has cause to question any of the expenses. For this reason, you should advise your client’s family to maintain records of all medical expenses for at least three years, in case the claimant is ever called upon to substantiate those expenses.

Expected changes for medical deductions

In January 2015, the VA issued proposed changes to the regulations governing deductible medical expenses. Of note, when the rules become “final” (expected in February 2016), the VA will no longer count the fees charged by independent living facilities as deductible medical expenses and will cap the deductibility of home health care at $21 per hour. 

Please join Dave Zumpano, Sabrina Scott (Director of VA Services, LWP), Kimberly Brannon (Technical-Legal) and me on Monday, December 14 at 4:00 pm eastern as we have a panel discussion of the 2016 VA changes, VA planning and accept your questions.   It is our duty as the leading estate planning attorneys in the nation to be prepared and educated on the VA changes coming in 2016, and we at LWP are excited to make sure all of our members are ready and educated when the changes take place.

Registration Link: https://attendee.gotowebinar.com/rt/8232313303938319617

By Sabrina A. Scott, Paralegal, The Elder & Disability Law Firm of Victoria L. Collier, PC, and Director of VA Services for Lawyers With Purpose.

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 with Purpose; and Co-Founder of Veterans Advocate Group of America.

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VA Pension Changes Not Likely To Occur Until Spring: How To Prepare Our Veteran Clients

by with No Comment Asset ProtectionLegal TechnicalVA

In February 2016, the Veterans Administration was set to enact new rules that will limit the availability of pension resources to thousands of veterans in need of care across the country.  The February enactment of the new rules was based on information provided on regulations.gov.  However, the most recent insider information suggests that the earliest we may see the final rule announced is Spring 2016.  Regardless, changes are coming and as elder care attorneys and strong advocates for the senior community we must quickly align our practices with the new VA rules to provide our clients with the optimum result under the changed rules.  Currently, the proposed changes to Title 38 of the CFR, include several items worth note.

Bigstock-Honor-And-Valor-1883321First, while the current rules allow a veteran or his widow to exempt “reasonable” land as a home place, whether the veteran or widow live there or not, the new rule will limit the home place exemption to 2 acres or less. This will certainly have an impact on farmers and those living in the more rural areas of the country.

Second, under the current rules, information and regulations regarding the deductibility of independent living facilities is contradictory to say the least. Currently, there is enough indication by the VA that as long as a doctor states that the applicant is in need of custodial care and assistance with at least two activities of daily living, an argument can be made that the independent living facility fees should be deductible medical expenses. Under the January 23rd changes, this “loophole” will be sealed and no independent living fees will be deductible medical expenses.

And, lastly, and most importantly, the proposed rules impose a 3 year lookback for all transfers made for less than value AND subject the applicant to a penalty period of up to 10 years for said transfers. Among the penalized transfers, transfers to trusts and funds converted to annuities are expected to be included.

Where does this leave us as trust and elder care planners? How do we move forward under the new rules? In order to ascertain the answer to these questions, we must evaluate the proposed rule changes along with the rulings the VA has issued on the availability of trust assets.

Currently, there are a number of VA Office of General Counsel rulings indicating what trust assets are not attributable to the veteran. Among these are trusts in which the veteran is the grantor and trustee, but all current and future interest in trust assets and income vest in the veteran’s child or grandchild (Op. G.C. 5-62 (3-2-62), VAOPGCPREC 73-91 (12-17-91)); testamentary trusts established for the benefit of the veteran over which the veteran has no personal control or discretion (VAOPGCPREC 72-90 (7-18-90)); and, third party trusts in which the veteran is an income beneficiary but all trust corpus vests in the trustee (VAOPGCPREC 64-91 (8-9-91)). Another ruling expressly states that any first party supplemental needs trust established by a competent veteran or his fiduciary will count as an available asset to the veteran (VAOPGCREP 33-97).

To indicate the importance of the grantor-trustee not having the authority to access income for himself personally, we can look to a recent VA decision as a case study. A lawyer filed an income only trust (NOT control only) with the veteran as grantor and income beneficiary in November, 2014. The case was denied almost immediately in December 2014. The basis of the denial, while no law or general counsel opinion was provided, was that all assets in the trust are countable assets because the veteran “receives net income of the trust.”

Where do the new rules leave us as planners? As LWP attorneys, we have an arsenal of trust plans available to assist veterans and plan for future Medicaid eligibility at the same time. First, there is the traditional plan that LWP has recommended for years. The home and land can be placed in a My Income Trust (MIT). The MIT is an irrevocable pure grantor trust in which the grantor maintains control and income. We move the home place into a MIT because it is an exempt resource and a low basis asset, allowing us to keep the step up in basis at death and maintains the lifetime exemption of $250,000 under the IRC Code Section 121 at the sale of the home. When the home is sold, the principal from the sale is owned by the MIT and does not then disrupt the grantor’s benefits eligibility. To be extremely cautious, some practitioners will put language in the MIT stating that upon sale of the home, the proceeds therefrom are to become part of another trust, generally a CGT or TAP, in which other assets are placed. Bear in mind that if the home sits on over 2 acres, any land beyond the 2 acres is not an exempt resource under the new rules. So, in that situation, it may be better to place any land over 2 acres into a trust in which the grantor has no income rights. It is not recommended by LWP that any other assets, other than the home place and up to 2 acres of land be placed in the MIT at this time.

After the home is placed into the MIT, the remaining assets can be placed in a CGT (Completed Gift Trust) or TAP (Tax All Purpose) trust. These are both non-grantor trusts. When dealing with veterans benefits, it is more typical to use a CGT trust than a TAP because the CGT does not include the Crummy Powers and GST language the TAP does, and these inclusions are generally not necessary as a person planning for VA benefits does not generally need the estate tax resources the TAP offers. Placing the liquid assets over $80,000.00 into the CGT will start the lookback period under the new VA rules. The CGT has been used by Victoria Collier, and many members, as a fool proof planning tool for VA benefit eligibility. The grantor is not the trustee, has no access to income or principal and the gift is completed for tax and planning purposes.

Further, it is clear that the rules as written do not exclude us from using a FIT to hold client assets. Well planned use of the Family Income Trust (FIT) should not only get a client on VA benefits, but will also qualify them for Medicaid in every state. The FIT, a control only trust, is a grantor trust used when a client has enough income to live comfortably on. The client can move assets into the FIT and remain the trustee. While the grantor/trustee has complete control over the assets in the trust, he personally has no access to the principal or income from the trust. The grantor can keep the assets within his taxable estate for IRS purposes, but has NO access to the corpus or income from the trust for public benefits planning purposes. While the VA has not appeared to have issued an opinion based directly on the use of the LWP FIT, it is clear their issue has lied 100% with the grantor having access to the income thereby making the FIT (a control only trust) a viable and useful planning tool.

If you're a Lawyers With Purpose member, I encourage you to listen to the webcast Dave Zumpano and Victoria Collier did last week, located on the Lawyers with Purpose website.  And, if you're an estate or elder law attorney, please join Dave Zumpano, Victoria Collier, Sabrina Scott (Director of VA Services, LWP) and me on Monday, December 14 at 4:00 pm eastern as we have a panel discussion of the 2016 VA changes, VA planning and accept your questions.   It is our duty as the leading estate planning attorneys in the nation to be prepared and educated on the VA changes coming in 2016, and we at LWP are excited to make sure all of our members are ready and educated when the changes take place.

Registration Link: https://attendee.gotowebinar.com/rt/8232313303938319617

Kimberly Brannon, Esq, Legal-Technical and Software Trainer at Lawyers With Purpose

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Are You Power In Partnership?

by with One Comment Coaching & ImplementationDavid J. ZumpanoSystems & Processes

Many years ago, a system designer worked side-by-side with me for three years to design all of the systems and processes that are now known as the Lawyers with Purpose law practice management system. Interestingly, over the course of those three years, this systems analyst discovered another system, a system of how I operate personally. In fact, he was so befuddled by it, he gave it a name: Power in Partnership™.


Bigstock-success-and-winning-concept---53462125As the consultant and I worked together and he picked my brain as to how I know what I do when I do it, he identified all of the standards that make up the systems that operate a solid law practice system for an estate planning attorney. It was interesting, however, one day near the end of our project, when he looked at me in amazement after I had recommended a solution to a problem and said, “You know, you always do this.” To which I responded, what? “Every time a challenge comes up you seek to understand the need, to identify solutions, and then you work with me to solve it.” He continued by saying his experience in working with me for three years was impactful. “It always feels like we're accomplishing something and it always feels like we're both meeting our needs.”

But this isn’t about me, it’s about the standards he identified to be an individual who lives by a “Power in Partnership” mindset. He continued on to say, “You know, we have spent so much time creating the system about how to run an estate planning practice, I think what I've hit on here is a whole way for someone to operate their life. I want to call it Power in Partnership.” I looked at him with intrigue and we began to design our final system – what it means to be a Power-in-Partnership-minded individual.

In its final form, someone is Power in Partnership if you are willing and able to get behind the needs of another person and work wholeheartedly to help that individual achieve their goal, need, or objective. I have found countless people who are generous in helping others, but it was the second part of the definition that distinguished a Power in Partnership mindset.

Let me continue. The second half of the Power in Partnership definition continues with the word “and, you are willing and able to enroll the other person into your need and make sure they are able to help you accomplish your goal, need or objective.” Wow. That's where most people fail. They are so good at helping other people with their needs, but they sell themselves out in the process. They fail to set proper expectations and in the end can often fail in their attempt to be generous because there was no “agreement up front.” This is so counterproductive and disheartening.

The consultant working with me defined it by having an approach to meet others' needs that was always followed up with an approach to get the other to ensure that they work within your standards and guidelines. That way, if either party doesn’t, the other can hold them accountable to the agreement to get the intended result so that it's a win/win and benefits the world. That's Power in Partnership! That is the foundation from which all Lawyers with Purpose operate. We are willing and able to get behind the needs of our clients and help them accomplish their goal, need and objective, and we are willing and able to enroll our clients in our needs to ensure they help or support us to get our goal, need or objective accomplished. The key distinction here is we. That is, we must be responsible to enroll ourselves in their need and we are responsible to enroll them into ours. People are not ordinarily wired this way and do not automatically presume to meet your need, nor do they presume that you will meet theirs. That's why Power in Partnership is such an amazing model that leads to great contributions and solutions not otherwise attained.

Are you Power in Partnership? Join Lawyers with Purpose and discover how to begin living a Power in Partnership life.  If you would like to know more about what we have to offer you in membership, join us on Friday, December 19th at 2 EST for our FREE webinar "The Most Profitable Planning You'll Ever Find: For Year End and year Begin".  Space is limited to reserve your spot today!

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

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Finding Balance When Speaking

by with No Comment Asset ProtectionLegal MarketingVA

I give a ton of presentations on veteransʼ benefits, to both attorneys and the public at large. The presentations range from 15 minutes to three days. Last week I presented at an independent living facility that requested the presentation be limited to 30 minutes, which included time for questions and answers.  As I often do, I wondered, “How can I tell them all they need to know in that short amount of time?”

Bigstock-Money-And-Time-Balance-On-The--98338895It is about maximizing the time you have. This became very real for me when I was out of town on a business trip and I wanted to get a massage. I usually get a 90-minute full body massage, but the spa only had an opening for 30 minutes. I asked myself, “What is the point?” but I booked the appointment anyway. When I arrived, they handed me a picture of a person and asked me to circle the areas of concentration I desired. I circled my head, neck, shoulders, back, hands and feet (everything but my legs). To my surprise, the therapist did an amazing job, even though she didn't get to my hands and barely touched my feet.  A quality massage in 30 minutes could be done!

And so can a quality presentation on VA benefits.  The problem is that we want to give the audience the full treatment, leaving nothing unsaid. Instead, dissect the information like a body and circle the most critical areas on which to focus.  Focus on those areas first; then, if you have extra time, you can add to the content. If you are short on time, cut out some of the minute details.  Leave something for them to ask you or for you to share at a consultation.

After presenting easy-to-understand, complete information in 30 minutes, I had just as many people immediately request an appointment as I do when I speak for an hour.  Since time is money, this begs the question: Do I need to speak for an hour?  Do I need the 90-minute massage or is 30 minutes enough? 

Refine your message, save time, and make more money.  

If you have an hour of time on Wednesday, December 2nd at 12 EST, Dave and I will be sharing what we are currently doing in trust planning for VA benefits after the proposed look back takes place.  Click here to register now. We'll talk about the transfer penalties for VA claimants expected to be implemented in February 2016. What does that mean for your trust drafting services? Will we need to change the language in our trusts? Or, worse yet, start using totally new trusts? Attend the upcoming VA Tech School Training on December 2nd at 12 EST on Drafting Trusts After the Laws Change.

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 with Purpose; and Co-Founder of Veterans Advocate Group of America.

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From Pat Summitt to Robin Williams to Glen Campbell: Understanding the Growing Alzheimer’s Epidemic

by with No Comment Legal Technical

Pat Summitt, arguably the greatest college basketball coach of all time, would have been described by those who knew her as a focused, opinionated leader and an athlete with an uncontrollable desire to compete and win.  In 2012, I had the opportunity to meet Pat at the National Alzheimer’s Association Dinner in Washington D.C.  She was as determined as ever to fight the disease that had taken her memory starting at the age of 58, but she stood back, timid behind her son, who spoke for and guided his mother throughout the evening.

Glen Campbell may be the most powerful public reminder of a haunting, stigmatic disease.  Diagnosed in 2011, Campbell brought Alzheimer’s and dementia awareness to the forefront of political debate by publicly announcing his diagnosis and continuing to appear in public as his memory faded away.  To date, Campbell can remember very little about those around him, but his wife states that he can still play the guitar.

Bigstock-alzheimers-ribbon-73717354Over the last several years, we watched and read celebrity gossip sites with great interest as Robin Williams seemed to struggle with various medical diagnoses, from mental illness to Parkinson’s disease.  Robin, unbeknown to most, had been planning to enter a care facility when he died. It was only after Robin passed away that doctors found he had lived with Lewy Body Dementia.

Certainly, the loss of a person whose life is as large and bright as that of Robin Williams ripples through a culture.  His wife’s bravery in coming forward to speak of his silent, undiagnosed struggle with Lewy Body Dementia opened the door for us and our clients to ask questions about the growing problem of dementia plaguing our society.  As November is Alzheimer’s and dementia awareness month, it is a good time for us to take a look at this epidemic and ask ourselves what we can do as attorneys, community members and family members of those who suffer with the disease.

The facts and figures surrounding Alzheimer’s and dementia are staggering.  Currently, dementia stands as the sixth-leading cause of death in the United States, and it is the only cause of death in the top 10 that cannot be prevented, cured or slowed.  One in three seniors die with some form of dementia, and two-thirds of these sufferers are women.  Despite the widespread growth of Alzheimer’s and dementia, only 45 percent of those who suffer are currently correctly diagnosed with the disease.

Not to be overshadowed are the costs Alzheimer’s is inflicting on our healthcare system.  In 2015, dementia care will cost our nation $226 billion.  By 2050, these costs are predicted to rise as high as $1.1 trillion.  With several state Medicaid programs struggling to stay afloat, and the number of institutionalized sufferers increasing daily, the United States is staring in the face of a major healthcare crisis.

As elder care attorneys, we must inform our clients of the fast-growing effects of Alzheimer’s and dementia, of the ability of these diseases to strike at younger ages, and of the complete disregard the diseases have for overall health and socioeconomic lines.  While it is important that legal advice is sought immediately upon diagnosis of a dementia-related disease, due to the lack of proper diagnosis, it is also essential that every family move forward with estate plans at younger ages.    Having a proper plan in place can in small part reduce the grueling toll this disease has on families.

As strong, educated voices for the elderly and aging populations, we can take active roles in requesting that Congress fund the National Alzheimer’s Plan and hold our elected officials accountable for their actions as science moves forward in seeking a cure for this disease.  In honor of Alzheimer’s Awareness Month, the National Alzheimer’s Association is asking all people to sign a petition to all presidential candidates in the next election asking that they announce their plans to fund research for this disease.  The petition is available on their website at act.alz.org. 

As a member of the Lawyers with Purpose community, it brings me such joy to hear the stories of our members and the countless ways we give back to our local communities through volunteerism and financial support.  Continuing our personal support for funding the fight against Alzheimer’s is an invaluable way for us to give back.  As November is Alzheimer’s Awareness Month, there is no better time to ask ourselves what we can do, as individuals, as attorneys and as loved ones of those who suffer, to help find a cure for Alzheimer’s and dementia.

If you want to experience first hand what it's like to be a Lawyers With Purpose member, and feel the synergy and community, join us this February 22nd – February 26th for our Tri-Annual Practice Enhancement Retreat in Florida.  Click here for the full agenda and reserve your spot today.  We're filling seats quickly and early bird pricing ends soon so grab your spot now!

Kimberly M. Brannon, Esq., Legal-Technical and Software, Lawyers With Purpose