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Avoiding The Five Major Threats To IRA’s: Part 5

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal Technical

Today I will conclude our five part series on the five threats to qualified accounts. In our first four blogs we outlined the threats to IRA’s from income taxes, excise taxes, long-term care costs, and estate taxes.   Today we will focus on the final threat, the risk of loss to beneficiaries and/or their creditors.  The U.S. Supreme Court in June 2014 in Clark v. Rameker held an inherited IRA is not a “retirement account” for purposes of the protection under the Bankruptcy Code.  This threw the financial and estate planning industry into turmoil, but those of us who stayed abreast of the legal arguments, were not surprised by the courts decision had planned that way for many years.  A second and often overlooked threat is by the beneficiary themselves.  Not all beneficiaries are equipped to receive assets and properly manage or protect them.  So let’s look at these dangers more closely.  

Bigstock-Black-Bomb-With-A-Burning-Fuse-49289681As outlined in our first part of this series, qualified funds are inherently protected under ERISA and the Bankruptcy Act.  The challenge however, is the U.S. Supreme Court now has ruled inherited IRAs (the IRA after the death of the owner) is not protected.  This is a major threat to qualified accounts.  The most strategic way to protect against this threat is to ensure an individual's IRAs is beneficiary designated to a "see through” asset protection trust.  For a trust to be qualified as a designated beneficiary under the Internal Revenue Regulations it requires it is irrevocable at death, it is valid under state law, the beneficiaries are "identifiable" and a copy of the trust is provided to the plan administrator.  Once these four conditions are met the IRS will look “through” the trust at the beneficiaries of the trust to determine the designated beneficiary to determine the required minimum distributions.  This can be an exceptional planning tool to protect the qualified account from the reach of the creditors, divorce, lawsuits, nursing homes, or other predators of the beneficiary, who now owns the IRA.  For a complete review of using a trust as a beneficiary of an IRA and all its benefits register for our FREE ­­­­ Clark v. Rameker Webinar.

The second major risk to qualified accounts is that while we can protect the IRAs from the predators and creditors of the beneficiary, we cannot protect it from the beneficiary them self.  How often do professionals get the call from the child, that inherited an IRA who says, “I need $70,000.00 out of my inherited IRA”, then the advisor discovers it is to buy a $50,000.00 car ($20,000.00 needed for income taxes) that's worth $40,000.00 when it’s driven off the lot.  For individuals who are concerned about spendthrifts as beneficiaries, qualified accounts can be protected from abuse by the beneficiary themselves by creating an accumulation trust as beneficiary.  An accumulation trust allows the trustee to hold the IRA required distributions made from the IRA in the trust and are not required to be distributed out to the beneficiary.  This would typically be done if there's a risk of the distribution being lost to the beneficiary’s creditors or predators.  The principal argument against accumulation trusts is that the income not distributed is taxed at the higher trust tax rate.  True, but the question becomes would you rather pay the highest trust income tax rate of thirty nine point six percent or give it to a beneficiary who is subject to a judgment in which case the beneficiary would receive zero.  In addition, to avoid the higher income tax, the distributions would be made to other beneficiaries named in the trust.  So planning to protect an IRA from your beneficiaries and for your beneficiaries is not difficult, but does require planning during the life of the IRA owner to ensure the beneficiary does receive the qualified account outright but through the form of a trust which sets all the protections the client desires. 

Join Lawyers With Purpose in St. Louis next week for 3.5 days of jam packed technical legal essentials necessary for any estate or elder law practicing attorney.  We still have a few spots left – click here and register today.

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

 

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Avoiding The Five Major Threats To IRA’s: Part 3

by with No Comment Asset ProtectionEstate Planning Drafting Software

Many people are keenly aware the many advantages of qualified accounts such as IRAs, 401ks and the like but few are aware that of the five major threats to all qualified accounts.  In the first two parts of this series, we discussed the risk of income taxes and excise taxes.  Today, I will discuss the risk of losing IRAs to the long care costs, and finally we will continue our series with threat to IRAs by estate tax and the beneficiaries and/or their creditors after the death of the plan owner. 

Bigstock-Black-Bomb-With-A-Burning-Fuse-49289681Many people believe that IRAs and qualified assets are exempt from determining eligibility for long-term care benefits such as Medicaid or Veterans Aid and Attendance benefits.  This is far from true.  It is important when planning for qualified funds to be clear on what the law states.  An IRA is an available resource in determining ones eligibility for Medicaid. This is deduced by the annuity exception contained in 42 USC 1496p (C) (1)(G).  The law states that an IRA is exempt if annuitized and follows the provisions.  Conversely, there is no exemption to IRAs being excluded under the law.  Accordingly, all assets are deemed countable except in the case of an IRA that is annuitized pursuant to 42 USC 1496p (C) (1)(G).  While the law is clear, many states Medicaid policy allows the individuals to protect their IRAs.  In recent years however, several states have begun counting IRAs as an available resource unless it is annuitized.  The challenge of annuitizing an IRA is the underlying asset is lost and instead, is converted to an income stream. 

The greatest threat of IRA’s to long-term care costs however, is the threat of the state changing its policy of exemption with no notice.  Since the federal Medicaid law is clear it is an available asset unless it is annuitized, many states policy current exempt it if it is in “payout” status, which often just requires proof that regular payments are coming out of the IRA.  Most states will accept it as long as the “required minimum distribution” is being made.  This is not the law, but rather state policy.  The state has the right to change this policy at any time without notice.  This is a major threat to individuals trying to protect their qualified assets from the cost of long-term care. 

It’s also important to distinguish that while the IRA may be exempt, the income distributions are not.  That’s why it is critical that you perform an IRA analysis to determine what the point of no return is.  The point of no return is that point in time, when, if the IRA is annuitized, the amount paid out towards the cost of long term care from the monthly IRA income, is more than the amount that would have been paid to income taxes if it had been liquidated. 

The LWP™ Medicaid Qualification software calculates a complete IRA analysis that identifies the point of no return so you can know at the beginning of planning, the length of time in a nursing home that would result in more money being paid out to long term care costs than to taxes if the IRA was liquidated and the taxes paid.  For a complete demo of the software contact Molly Hall at mhall@lawyerswithpurpose.com.  Or you can schedule it right now by clicking here.

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

 

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Avoiding The Five Major Threats To IRA’s: Part 2

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal Technical

In this series I am discussing the five major threats to qualified assets, today is Part 2 of the five-part series (you can read Part 1 here).  The five major threats to qualified funds include income taxes (covered previously), excise taxes (which we will cover today), long term care costs, estate tax and risks to beneficiaries and/or their creditors.  A major threat to IRAs and other qualified assets is the unexpected payment of excise taxes.  Excise taxes are in addition are ordinary income taxes and are imposed when a client takes their money too soon, or waits too long to withdraw it.  Let's address each one. 

Bigstock-Black-Bomb-With-A-Burning-Fuse-49289681There is a ten percent excise tax otherwise known as the "early withdrawal penalty" if an individual removes assets from their IRA prior to age fifty nine and a half.  The government has done this because it has a strong interest to ensure individuals save for retirement so they are secure and less of a risk to be a burden on society to support them.  The government in recent years however has permitted certain exceptions to allow withdrawals from IRAs before fifty nine and a half for the purchase of a home or to pay medical expenses.  Both of these exceptions have limitations but when properly followed, avoid the extra ten percent excise tax. 

Another long standing rule that avoids the excise tax, is what is commonly referred to as the 72(t) election.  An IRA owner may withdraw prior to age fifty nine and a half without the excise tax if they agree to take an equal stream of payments over a period of time that is the greater of five years or when the IRA owner turns fifty nine and a half.  For example if a 72(t) election is made to withdraw $300.00  a month from an IRA at age fifty, to avoid the excise tax, the recipient must agree to accept that monthly payment for nine and a half years.  Alternatively, if an individual at the age of fifty seven elects to take a regular stream of payments, they must take it for a minimum of five years which would require them to continue the distributions until age sixty two.

A second excise tax which is much more costly is the fifty percent excise tax if an individual fails to take the minimum distribution required under the tax law.  This is commonly referred to as the "late payment penalty".  The government has preferential treatment for IRAs so that people can save for retirement, but wants to ensure that they actually utilize the funds in retirement, and not just use it as a tax avoidance tool.  The tax law requires IRAs to begin being distributed once an individual turns seventy and a half years old.  If the individual fails to take the required minimum distribution calculated based on their age and life expectancy, they are imposed to a fifty percent excise tax in addition to the ordinary income tax rate on the undistributed required minimum distribution. 

Assuming a required minimum distribution was $1000.00 and an individual is in the twenty percent income tax bracket, the individual will lose seventy percent or $700.00 if the required distribution is not made timely.  That is simply calculated as a $1000.00 distribution with a payment of $200.00 in income tax and $500.00 in excise tax.  Obviously this is a major threat to IRAs but easy to avoid with proper management of accounts.  Don't let excise taxes threaten your IRAs, ensure you leave the assets in until reaching age fifty nine and a half and begin taking the required minimum distribution when you turn seventy and a half.

Stay tuned for Parts 3-5.  And, if you're interested in learning more on Protecting IRA's After Clark v. Rameker join our FREE webinar this Friday at 1 Eastern.

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

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Avoiding The Five Major Threats To IRA’s: Part 1

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal Technical

IRA’s and other qualified accounts are becoming the biggest portion of many individuals' portfolios.  They have many special rules to maintain their income tax advantages and despite having special rules that protect them for income tax there are several threats to them that are often overlooked by individuals and the professionals that serve them.  This will be the first of a five-part series sharing the five major threats to IRA’s and other qualified accounts and how to avoid them.  So what are the five major threats to retirement plans?  In my experience it is: income taxes, excise taxes, long term care costs, estate taxes, and risks to beneficiaries and/or their creditors.

Bigstock-Black-Bomb-With-A-Burning-Fuse-49289681The first risk to IRAs, and other qualified assets, is income taxes.  Many of us are aware contributions made to a qualified plan defers the income tax on the money contributed.  In addition, contributions accumulate "tax free".  The challenge and threat however is not upon the contribution to the plan, but the withdrawal.  The presumption is the individual will withdraw the money at retirement when they are in a lower income tax bracket.  That is not always true.  There is a risk the individual can have a higher tax bracket after death, or that income tax rates will rise (Congress has raised rates many times in the past).  Higher income tax rates later are not only caused by Congress and by the asset mix of the client, but quite often the income tax rate of the beneficiary is higher than that of the original plan owner.  For example a client in retirement might be taxed at the fifteen percent tax bracket but they pass away and leave it to their children, who may be in the thirty nine and a half percent tax bracket.  This is often overlooked. 

The biggest threat I find however, is that many individuals who own IRAs and retirement funds, only withdraw the required minimum distribution rather than optimizing the minimum income tax overall .  In many circumstances, seniors pay no income tax or only pay ten or fifteen percent.  A married couple over the age sixty five can earn up to $21,850.00 (not including social security) without paying any tax and up o $40,300.00 before they are subject to taxes beyond fifteen percent.  But seniors routinely take the required minimum distribution rather than taking more distributions to withdraw the most possible while keeping them in the fifteen percent tax bracket or less.  The biggest advantage is the after tax money (which only between zero and fifteen percent was paid) reinvested grows and is subject to capital gains rates which is lower than ordinary income tax on an IRA if ever sold during life, and if held till after death gets “stepped up” and no income tax is paid on the growth of the assets by the kids that inherit them, If the kids hold onto them all growth is subject to capital gains rates rather than the higher ordinary income tax rates.  So the alert to all is don't be on autopilot, examine your short and long term income tax rates compared to your beneficiaries, to properly decide when to take advantage of strategic distributions during life to ensure you pay the overall lowest income tax on your IRA’s.

Stay turned for Parts 2-5 and subscribe to our blog if you're not already (just enter your name and email on the box to the left).  If you would like to learn more about protecting IRA's after Clark v. Rameker join our FREE WEBINAR this Friday at 1 EST.  Click here to register.

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

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Knowing, Respecting, Honoring Veterans

by with No Comment Estate Planning Drafting SoftwareLegal TechnicalVA

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

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

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

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

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

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

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

 

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How To Add Insurance Services To Your Practice

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal Technical

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

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

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

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

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

That stops today.

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

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

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

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

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

REGISTER NOW HERE

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

 

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How Are You Showing Up?

by with No Comment Coaching & ImplementationLegal MarketingSystems & Processes

Do you know how you show up in the world? Most people don’t. Most hand out evaluations after they give a speech or presentation but most of the questions are canned and quite honestly useless, “On a scale of 1 to 10 please rate…”

What if you knew, really knew what people out in the crowd were seeing? And the real impact it is making on your practice.

Bigstock-Vintage-Typewriter-72875398I remember my first presentation at The National Network of Estate Planning Attorneys.  I thought it was a home run. I was on fire and the evaluations were off the charts. The room was packed.  So naturally they invited me back. In between the 6 months of the first presentation, and the 2nd one, I met one of the Co-founders of Ridge Associates at a local Entrepreneurial Society meeting in my town. I instantly enrolled in his Speakers School and the next presentation for NNEPA people were mobbing me in the hallways (including the owners) saying “What happened to you? You were not even close to the same person you were 6 months ago on stage…can you teach ALL of our leaders how to do what you just did?”

That night at dinner one of my closest buddies at NNEPA said to me, “I didn’t know how to articulate it after your May presentation but after seeing this 2nd presentation I have to tell you that your 1st presentation was painful to watch. But, the first 5 minutes of today’s presentation…. HOLY SMOKES….NNEPA wants you back for the Spring Collegium as a KEYNOTE SPEAKER! WHAT. DID. YOU. DO? - what did you do?  And can you show me how to do it too?!”

It wasn’t anything I did. I just showed up.

Trust me, get in the room. We don’t know when we will offer Speakers School again. We are fortunate enough to get Bob Gabor, my trainer, and it took a few years to get him booked. I don’t want you to wait a few years to get the single thing that I attribute ALL of my success too.  

I know, I know…YOU don’t need it. That’s what I thought about myself 14 years ago. But apparently the audiences I was speaking too thought differently.

I am personally excited to sit through Speakers School again, 14 years later. Click here to join me.  This will be the best investment you make in your practice in 2015. I cant wait to hear how your conversion number soar.

I want you sitting next to me.

Dave

P.S. Oh yeah…. 2 of my staff members will be sitting in THIS Speakers School WITH me. They want to get more workshops and presentations to our area power partners for my practice (nursing homes, adult daycare centers, etc.). Talk about a SURREAL moment. Your team is invited too but there are only 8 seats remaining so RESERVE your firm seats NOW.

 

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Joint Or Individual Trust

by with No Comment Estate Planning Drafting SoftwareLegal Technical

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

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

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

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

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

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

Asset Protection

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

Medicaid

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

VA Benefits

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

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

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Veteran Benefits For Widows

by with No Comment Estate Planning Drafting SoftwareVA

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

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

Claims Based on the Veterans Disability:

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

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

Burial Benefits:

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

20/20/20 Rule:

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

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

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

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

 

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

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

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

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

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

So how is it done?  SPEAKING!

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

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

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

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

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

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

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

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

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

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

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

REGISTER NOW

To your success,

Molly

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