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Listening Twice

by with No Comment Coaching & ImplementationLegal Marketing

Reruns, Anyone?

I’m not much for watching a movie or TV show twice.  After all, you already know the end, right? And I don’t think I’ve ever paid to watch a movie twice. 

Bigstock-replay-icon-75519802But this week I found myself in the position of listening to Jeff Bellomo and Lou Leyes pretty much having the same conversation that they had in Phoenix way back in October, and I’ve got to tell you … I enjoyed it even more the second time, picking up more gems after hearing it twice.

Jeff and Lou give the inside scoop on the financial advisor’s world. As a financial advisor, Lou shared how to get into that world, and gives tips on how to find financial advisors who would be good fits for working with LWP member firms.

The title is “Busting Financial Advisor Myths,” and if you're a member and missed it in Phoenix, then you’re in luck.  It’s posted on the LWP member website and available to members.

One-by-one, Lou and Jeff give responses to the typical financial advisor roadblocks that our members commonly encounter:

  1. It’s always a bad idea to cash out an IRA.
  2. Clients should never use trusts because trust rates are too high.
  3. Clients should never make a separate share trust the beneficiary of an IRA or 401(k)
  4. Annuities are the greatest thing since sliced bread.
  5. The best way to avoid probate is to use beneficiary designations.
  6. Asset protection planning isn’t necessary when clients have the right insurance policies in place.
  7. Medicaid planning is bad and unnecessary for my clients.

Just to let you know, I’m not alone in my appreciation of this presentation. I think it received some of the highest member ratings ever when it was presented.

Folks, this is a “must see” for anyone who is using the Relationship Management Process (“RMS”) or planning to implement the process. I’d like to personally express a huge “Thank You” to both Jeff and Lou for sharing their insights.

If you want to learn more about what Lawyers With Purpose has to offer your Estate Planning or Elder Law Practice, join us in Charlotte, NC, February 3rd – 5th for our Practice With Purpose Program.  Hotel cut off is January 12th so register today.  For registration information contact Kyle Russ at kruss@lawyerswithpurpose.com.

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

 

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What To Do With… “Trust Or LLC?”

by with No Comment Asset ProtectionEstate Planning Drafting SoftwareLegal Technical

Many lawyers create LLCs to provide clients "asset protection" in the event they own an asset that has a risk of a lawsuit.  A typical asset put in an LLC is rental real estate to ensure the client is protected from liability that could occur at the rental real estate. 

Bigstock-Cross-Roads-Horizon-29420951The question is; “When is a trust a better vehicle than an LLC?” 

When the proper trust is used and the ultimate goals of the client are protection from liability of the asset and protection of the asset from his liabilities, then a trust is usually better.  Instead of conveying the rental real estate to an LLC (which only protects the client from risk from assets), a single-purpose irrevocable pure-grantor trust can also protect the high risk asset from loss from the clients liabilities (i.e. nursing home). 

In addition, a pure-grantor trust is included in the clients’ taxable estate at death, which assures a full "step up” in basis on the real estate, even after a lifetime of depreciation. Similar to an LLC, it assures the client asset protection from any liabilities that could occur by the high risk asset.  The distinct advantage of the trust, however, is that it also protects the rental real estate from the client’s personal liability, like lawsuits not related to the real estate and a client’s long term care costs.

One benefit I never expected was clients’ desire to maintain privacy.  Many of my clients who use trusts, relish not having to file with the state for an LLC which often requires an annual fee, and separate income tax returns. Surprisingly, clients highlight the benefit of not being on the “mailing list” of solicitors who target those who file LLC’s with the state.

A final significant benefit is that a single-purpose IPUG integrates into the client's traditional estate plan whether it is a revocable living trust, an income-only irrevocable trust, a control-only irrevocable trust or a third-party irrevocable trust.  While lawyers have traditionally used LLC’s, many clients prefer trusts when the distinctions are properly discussed.  My clients choose the single-purpose IPUG™ three to one over an LLC. 

For more information on what Lawyers With Purpose has to offer, join us in Charlotte, NC, February 3rd – 5th. We'll go over this strategy and many more over the period of 2.5 days!  Hotel cut off is January 12th so register today to reserve your spot!  For registration information contact Marci Otts at motts@lawyerswithpurpose.com or call 877-299-0326.   

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

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The VA Rejected My Claim

by with No Comment Legal TechnicalVA

The attorney of a wartime veteran filed a claim for pension with aid and attendance, just like he had done many times before, using VA Form 21-526, Veterans Application for Compensation and/or Pension.  Yet, this time was different.  His claim was denied for submitting the wrong form.

Bigstock-Rejected-stamp-77195957How can this be the wrong form?  It says right in the title of the form, Veterans Application for Compensation and/or Pension.  Pension is the benefit being sought.  The most recently published form is November 2014, thus, the form itself is not outdated.

I cannot answer the above question. What I can share to all advocates who are accredited by the VA to assist veterans with claims is that the VA prefers, and is apparently requiring, that all claims be submitted through the Fully Developed Claims (FDC) process.  There are specific application forms for this.

For Veterans filing a claim for service connected disability benefits, use VA Form 21-526EZ, published in January 2014.

For Veterans filing a claim for Improved Pension (which may include aid and attendance), the VA Form 21-527EZ is the appropriate form.  It was published in August 2011, which is still the most current form to use. 

For Widows of Veterans, the 21-534EZ must be used, which is dated June 2014. 

Unfortunately, what can be confusing is that the other, non-FDC application for widows, 21-534 (without the EZ), is also still available to file and was also published on June 2014.  Like the 21-526, which permits a person to file an application for pension, the 21-534 (without the EZ) may be rejected because it is not on the EZ form.  As long as the claim is filed on a currently available, currently published (not superseded) form, then the VA should accept the claim, even if not on the EZ form.  Go to: http://www.va.gov/vaforms/ to obtain the most current forms available.

What do you do if you filed an application for benefits but it was rejected or denied for having been filed on the “wrong” form?  Submit a new application using the correct form.  The good news, per the current law, is that even though the wrong form was completed, filed and rejected, the VA must still treat that “communication or action” as an “informal claim” for benefits. The advantage of “informal claim” recognition is that the filing of an informal claim “locks in” the eligibility date for approval of benefits. Thus, even though it feels like you are starting over with the claim, the approval should be retroactive to when the original claim was filed, albeit on the incorrect form.  Time in processing the claim may be lost, but not the actual benefit itself during that time.

For more information on the day-to-day operations and expectations of the Veterans Administration, become a member of Lawyers with Purpose and attend our monthly training webinars, led by national Veterans Pension Benefits expert and co-founder of Lawyers with Purpose, Victoria L. Collier, Certified Elder Law Attorney, through the National Elder Law Foundation.

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

Victoria Collier has been the leader at teaching lawyers how to help Veterans.  She is providing the 3 hour accreditation training on February 4, 2015, in Charlotte, North Carolina for just $249!

Even if you have had the initial accreditation, this course will also meet the on-going accreditation requirements.  Each lawyer who is accredited must continue to take 3 hours of CLE every 24 months. In addition to the required information, Victoria will bring you up to date practices by the VA.

If you are just a beginner or a seasoned VA practitioner, you are certain to learn something.  And, because it is live training, you will have the opportunity to ask questions. Don’t miss this opportunity!  To register contact Kyle Russ at kruss@lawyerswithpurpose.com.  Seats are limited so register soon.

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

 

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How To Medicaid Plan For IRAs

by with No Comment Estate Planning Drafting SoftwareLegal Technical

The biggest challenge of most Medicaid planning attorneys today is how to plan when the majority of the client’s assets are in qualified funds.  Let’s review the law.  An IRA under the federal Medicaid law is an available resource.  The exception to the general rule is if the IRA is annuitized.  Once annuitized the IRA is no longer considered an available resource, but the income generated from the IRAs monthly pay out is considered income to the applicant in determining eligibility for Medicaid. The confusion occurs in many states exempt an IRA if  required minimum distributions are made, rather than requiring it be annuitized, which protects the IRA.  A recent trend over the past two years, however, is states are beginning to take the position an IRA is an available resource unless annuitized and I expect this trend to continue. So, what are your options? 

Bigstock-Ira-Word-Cloud-Concept-58770038There are primarily only two options in this case.  The client can annuitize the IRA, in which he or she converts the entire lump sum into a stream of payments that end at the death of the client.  This rarely serves the long-term goal of the client which is to ensure there is some benefit left for his or her heirs.  The alternative is to liquidate the IRA, pay the taxes and put the balance into an asset protection trust.  The question is knowing when to pull the trigger to liquidate.

For LWP members, they use the IRA liquidation analysis software to calculate the point of no return, when the client would have lost more to the nursing home by distributing the RMD than had they liquidated and paid the taxes to the IRS.  For others it’s more obscure.  But either way the critical issue comes down to the cost offset.  If a client is in the nursing home, then use of the IRA is a great way to get the maximum benefit of the IRA because the cost of the care is tax deductible expense that offsets the taxable distributions from the IRA. This gives the owner the maximum benefit from the IRA and acts as an additional cash benefit to offset long term care costs equal to the amount liquidated multiplied by the IRA owners’ tax rate (usually 20-30%).  Preplanning however, requires a different analysis in identifying the age in which the client begins to liquidate the IRA to ensure that the overall tax rate that they will pay will be far less than what their beneficiaries would pay.  Either way it is a viable solution if you’re doing the proper analysis.  For a demonstration of how LWP calculates its IRA liquidation analysis contact Molly Hall at mhall@lawyerswithpurpose.com.

If you want to learn more about planning with IRAs and more specifically learn more about Clark v. Rameker – the recent court decision that set new precedent that inherited IRAs are not protected from creditors and preditors, join our Free Webinar TOMORROW at 7:00PM EST.  Click here to register now!

During this Webinar you will learn:

  • Share the key holdings of the recent Supreme Court decision.
  • Discuss the asset protection strategies available for inherited IRAs.
  • Identify the four requirements for trusts to qualify to own IRAs without causing taxation.
  • Review the "inside" and "outside" planning strategies we have used for years to protect inherited IRAs and provide clients with the maximum number of options at death to avoid the loss of an IRA to creditors and long-term care costs.
  • And much much more…

Just register here and reserve your seat… it's 100% FREE!

If you're an existing Lawyers With Purpose member, good news!  You already have access to this information on the members' website.

To your success,

Dave Zumpano

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Free Webinar – Why NOT To Name Kids As IRA Beneficiaries

by with No Comment Asset ProtectionLegal Technical

The US Supreme Court in Clark v. Rameker (June, 2014) solidified that children or other “non-spouse” individuals should not be named the beneficiary of an IRA, if asset protection is a goal.  The court, in a 9-0 decision, declared that an inherited IRA is not a “retirement account” and allowed the bankruptcy trustee to invade an IRA inherited by the debtor (child), to pay her creditors.  The decision set the new precedent that inherited IRAs are not protected from the creditors and predators of its owners. Click here for a decision tree on naming your IRA beneficiary options and the asset protection impact.

Bigstock-Elementary-School-Kids-Group-I-50081939The Supreme Court decision left intact the ability to name a spouse as beneficiary, since a spouse has the right to create a new IRA or combine the IRA of the deceased spouse with his or her existing IRA. While this method may appear to protect a spouse’s inherited IRA, it is not a viable approach when an individual dies without a spouse, or if the surviving spouse is in need of long-term care.  There is however, a foolproof way to protect IRAs after death, regardless of circumstance. Name a trust as beneficiary!

Most legal and financial professionals will grimace at the idea of a trust being named beneficiary of an IRA.  They believe that doing so makes the entire IRA taxable at death or will result in the loss of the “stretch” and force it to be paid out within five years.  This is true only if the trust named beneficiary is not a “qualified” pass thru beneficiary, but if it is, it enjoys all the benefits the trust beneficiaries would receive as direct beneficiaries.

For a trust to be a “qualified” pass thru beneficiary of an IRA it must meet four criteria:

1) it must be valid under state law;

2) it must have identifiable “human” beneficiaries;

3) it must be irrevocable after death; and

4) a copy of the plan document must be provided to the plan administrator.

While there are some complexities in complying with these rules, once understood and properly applied, naming a trust as the beneficiary is the only way to ensure asset protection of inherited IRAs in the post Clark v. Rameker world. When properly drafted, a Revocable Living Trust, an Irrevocable Pure Grantor Trust (iPug™), a grantor trust or non-grantor trust can be utilized. The drafter of the trust must distinguish the “inside” designation strategy from the “outside” designation strategy. That is, how to structure the beneficiary designation on the IRA beneficiary designation form and integrate it with the beneficiaries designated in the Trust to accomplish a myriad of scenarios for the surviving spouse (or other beneficiaries) that do not have to be decided until after the death of the IRA owner.

Click here to download a copy of the LWP IRA Beneficiary Designations Decision Tree.  And to learn more about Clark v. Rameker join our FREE webinar THIS Wednesday, December 17th at 7:00 ET.  Register now.  It's 100% free!  We'll see you then.

Dave Zumpano

 

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Why Most Lawyers Fail…

by with No Comment Estate Planning Drafting SoftwareSystems & Processes

The entrepreneurial seizure happens when the natural technician who enjoys doing the work finally has a different experience – frustration.

The technician says to himself, "Wait a minute, I didn’t start my own business to do data entry nights and weekends." He or she believes they must be missing something.

In that moment, their fate is sealed.

As lawyers, we are technicians.

In "The E-myth Revisited," Michael Gerber explains that most business owners make a fatal assumption. They understand the technical work, so they mistakenly believe that means they also understand the business that provides the technical work.

Unfortunately, this is simply not true! And this belief that they know enough ultimately leads them to failure.

Most lawyers fail because they never had any formal training on how to run a business.

It's not enough to perform as an outstanding lawyer.

You probably don't know enough about finance, marketing, management, and operations.

The good news is, these subjects are easy enough to learn.

Bigstock-time-for-change-67475953As Gerber says in his book, "You must analyze your business as it is today, decide what it must be like when you've finally got it just like you want it, and then determine the gap between where you are and where you need to be in order to make your dream a reality. And then delegate the rest."

I have the tool to help you start to do that: Pay Per Trust back-office trust drafting.

Walk into 2015 without the baggage of 2014. FINALLY get control of your business's financial health, delegate the admin so you can focus your time on meeting with clients to actually increase cash flow.

The bottom line is, this tool will free you up to focus on revenue-generating activities without increasing your overhead.

Click here to take full advantage of back-office trust drafting and received $100 off your first trust using the discount code of “HOLIDAY”. But act now, because this offer ends 12/31/14. 

Committed to your success,

Dave Zumpano

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What Infrastructure Do You Really Need To Run Your Practice In The Cloud?

by with No Comment Estate Planning Drafting SoftwareLegal MarketingLegal Technical

Cloud Computing Has Changed The Game 

Every now and then technology forces businesses to change the way they operate. The typewriter led to typing pools and carbon paper before being replaced by word-processors on mainframes and then on personal computers. The fax machine replaced the need for some postal services and is in turn being replaced by email.

Bigstock-Cloud-computing-concept-21983423Similarly, for small to medium sized businesses, cloud computing is replacing the need for in-house networks and servers.

The Advent of the IT Consultant

In the beginning stand-alone PC’s were simple to deal with, however the benefits of linking them together quickly became apparent, and this gave rise to the “local area network” (LAN). Things quickly became complicated and business owners no longer had the skills, or the time, to deal with this. Information Technology (IT) consultants stepped in to fill the void and a new industry sprang up.

Then Things Changed

Cloud computing has arrived, and allows the complexity of networks and shared services to move out of the office and onto the Internet (a.k.a. “the Cloud”).  Business owners no longer have to concern themselves with technology and can focus their full attention on their businesses.

The New Breed of IT Consultant

The smart IT consultants have embraced the change and have found greater opportunities to engage with their clients at the application layer. Rather than crawling around under desks hooking up wires and servers the new breed of IT consultants work with their clients on things such as selecting the best cloud technologies and adapting them to match their client’s business processes. Business owners immediately see the value of this type of engagement because the consultant is talking to them in terms they understand; sales conversion, production workflow, document automation, efficiency, profitability, etc.

The Old School

Unfortunately not all IT consultants have made the transition and many are still encouraging business owners to install complicated and expensive in-house technology over superior and more affordable cloud options.

To register for our Webinar TOMORROW at 4:30 EST to learn more about the LWP/Action Step Cloud Based Workflow System, and get your questions answered register now!

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

 

When Cash And Time Are Choking

by with No Comment Estate Planning Drafting Software

It’s holiday time, your team has been pre-approved for planned vacation time and you have seven clients who have hired you in the past two weeks.

What’s the problem, you ask?

Well, last week you finally had the time to sit down with Jolie, your drafter, to go over all the files sitting on the floor in the north corner of your office. Jolie reminds you that you approved her vacation time in August. She’s out Wednesday and won’t be back for eight business days.

The clients are scheduled for their signing meetings the day after she gets back.

  1. You won’t have time to review the trusts, make the changes, and print and assemble the documents.
  2. You will have to work nights and weekends and, between all the trying band concerts, choir concerts and white elephant parties your wife already committed you to etc., your weekends and evenings are not exactly looking like an available resource.

That is why I am personally enthusiastic about the “Pay Per Trust” model. Finally law firms can outsource their back-office administrative activities to free themselves up to meet with clients and referral sources – the activities that create consistent cash flow. And the best part is, this will also enable the team to focus on client services and referral relationship management.

Are you ready to make a move and start focusing your already minimal time on growing your practice – without spending countless hours drafting trusts or hiring extra help? The BONUSES are:

  1. No contract at all. Only pay us when you have a client, whether that is once or multiple times a month.
  2. Try our back-office trust drafting and received $100 off your first trust using the discount code of “HOLIDAY,” but act now – this offer ends 12/31/14.

Click here to find our how to “try it on,” and if it doesn’t fit, you don’t have to show here again. But I highly doubt that will be your result. 

Committed to your success,

Dave Zumpano

Pay Per Trust

by with No Comment Estate Planning Drafting SoftwareLegal Marketing

For the past decade I have been hearing from attorneys that business would be great “But for the drafting. I am drafting nights, weekends and it is literally killing me.”

Molly has been hearing the same from the support team side. The average phone call coming into the office is 19 minutes long, “I am the only one here to answer phones, greet clients, draft the trusts, the funding and everything else. WHEN ARE WE EVER GOING TO CATCH A BREAK…?”

Finally, a Solution for Busy Attorneys Who Don’t Have the Time, Staff, or Software to Generate Comprehensive Trust Documents for Their Clients.

I am pleased to be able to provide you with a solution so that you can:

  • Spend more time meeting with clients and less time drafting
  • Increase productivity and profits without increasing staff
  • Meet with clients and design their plan and have a completed trust back in FIVE business days and be able to conduct the Signing meeting

Click here to learn more about Pay Per Trust and how to get one administrative headache off your desk TODAY to free you up to work on revenue producing activities!

And to help you reach goal by the end of the year, we’re offering a $100 ONE TIME for first time users discount that expires 12/3/14 at MIDNIGHT.  Just add in the code "HOLIDAY" when checking out.

To your Success,

Dave Zumpano

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Start With Where You Are NOW…

by with No Comment Coaching & Implementation

There we are together.  The last day of the retreat, October 24, after walking through each and every conversation we’ve had during our Why Coaching Days since we began the journey together in January of 2013.

Wow! 

Bigstock-Athletes-At-The-Sprint-Start-L-58880123The topics alone were big, but what came out of them was even bigger.  My favorite was, “You Must Be What You Want From The World” – just let that one sink in for a minute, remind yourself and then pull out your Action Plan from that day 22 months ago.

Getting back to October 24– today I looked at “My Four Month Focus” workbook.  It caused me to ask myself just what Dave asked us that day: “What future do I choose and what am I deciding to take from my past to use in the present to live a life I love?”  The answer to that question starts with “Where am I – today?”

I wrote down a few things that impacted me getting where I am today: (1) the work I’ve done with the support of my life coach; (2) working with the best estate planning attorneys nationally alongside their teams, sharing and growing TOGETHER (our members really move me); (3) the daily inspiration I get from my three boys.

So I put those things into play via a “Freedom Cycle” activity onto my LWP Progress Focuser to carry over to another tool that I’ll get to in a bit.

Next we had an internal reflections exercise.  They’re necessary when you look at where you are; they may not be always fun to play with, but they ALWAYS provide opportunities to grow.  My insights were: (1) stop trying to add value at the risk of dampening commitments and adding my own .02 in every conversation; (2) pay attention to others’ behaviors more during conversations; (3) work on my “winning” and “excuses” mindset when I need to get er’ done.

We moved through five activities that day, and each provided us with three insights.  Now this is where the carry-over comes from my previously mentioned “Freedom Cycle.” We walked away with an action plan for the next four months that hit:

  1. Where I am;
  2. My Freedom Cycle;
  3. Progress Focuser;
  4. Destructive Habits;
  5. Present Focuser.

All of this was contained within one booklet that is in front of me DAILY.  I’ve completed an Idea Focuser for each one based on my insights.  I’ve set a goal, written down how I’m going to measure progress, and I know the benefits, my obstacles, and the contribution to others and myself. The strategies are written down that I will use to overcome obstacles, along with the next action and the “by when” date. 

During this process, it hit me that I’ve been tabling a goal of mine for “reasons,” and all I need to do is put time in my calendar, and not let it get trumped by ANYTHING, to fuel my inner Quick Start/Follow Through.  So, I added that to the agenda for our Board of Directors meeting to make 100% sure someone was holding me accountable week in and week out to get it done.

And that was just the first thing I added to my Future Focuser.  There are four more that are a blend of personal and professional goals in front of me daily, to hit by February 2014, when I will be back in the room with LWP, our members and their team in Charlotte!  I can't wait.  It'll be a lot to work on between now and then – but I'm taking it all one step at a time.  With today and where I am now…. I can't wait to look back in February 2015.

Let me know what you’ve DECIDED that will enable you to live a life you love!  You can email me at rdrotar@lawyerswithpurpose.com or comment below.  If you would like go through the Why Day Power Point "What Got You Here Won't Get You There" click here.  And if you are interested in any of the tools we used that I mentioned, feel free to email Molly Hall at mhall@lawyerswithpurpose.com.  

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