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Our “boot camp” kicked off mid-day yesterday. The founders, Robert Armstrong and Sanford Fisch offered an 8 hour training on the systems to make a law practice run like a well oiled machine… and the first 4 hours were yesterday afternoon.
Our boot camp attendees are attorneys and staff from around the country! We have people coming in from New York, Nebraska, Michigan, Florida, Ohio… all over the place. One really good feeling I’ve always had working with estate planning firms is that these attorneys and their staff are usually fun and caring people. The attorneys that are looking for cutting edge tools are also entrepreneurial and excited about tools that work. The people attending are incredibly focused and seemed to really connect with the ideas and the other attorneys in the room.
The agenda yesterday was busy covering topics that start from the ground up.
Our guests ended the sessions yesterday with all the motivation, info and forms that make it easy to prepare their own Strategic Plan while they’re here this weekend. A thorough look at time management and delegation is a crucial element of success and the discussion really provoked some thought and upcoming change in the way the participants have their highest and best use a priority.
One big time waster everyone agreed on was spending time doing work that is not “counselor” or “CEO” work. A walk through every detail of putting systems in place to have well-trained staff handle responsibilities that some attorneys have spent time doing themselves carves the way for them to make some changes when they get back to their own practice.
Last night we had a fantastic dinner where everyone chatted about what their discoveries were yesterday and what could make it tricky to shift gears when they get back home. What gets in your way when it comes to planning, time management and delegation?
Jennifer Price
Director, Member Services
American Academy of Estate Planning Attorneys, Inc.
(858)453-2128
www.aaepa.com
As we know, an estate plan must be crafted carefully to achieve the desired results. Hopefully, through the coordination of various strategies, the result is reached. Imagine the upheaval if you crafted an estate plan for someone whom you thought was unmarried and he or she turned out to be married!
In several American jurisdictions, it is still possible for someone to be married without a formal license certifying their relationship. “Common law marriage” can occur when a couple holds themselves out as married and cohabitates. States vary regarding exact requirements, such as the duration of required cohabitation. Certainly, if a couple has been living in a common law marriage jurisdiction, it would be wise to probe deeper as to whether they ever held themselves out as being married.
According to the National Conference on Uniform Laws, “Currently, only 9 states (Alabama, Colorado, Kansas, Rhode Island, South Carolina, Iowa, Montana, Oklahoma, and Texas) and the District of Columbia recognize common-law marriages contracted within their borders. In addition, five states have ‘grandfathered’ common law marriage (Georgia, Idaho, Ohio, Oklahoma and Pennsylvania) allowing those established before a certain date to be recognized. New Hampshire recognizes common law marriage only for purposes of probate, and Utah recognizes common law marriages only if they have been validated by a court or administrative order.” Read more on common law marriage here: http://www.ncsl.org/default.aspx?tabid=4265
A current case illustrates the problems which might ensue. John O’Quinn was a successful Texas lawyer who won millions in breast implant and tobacco litigation. He died recently, leaving a Will stating that he was single and that he was leaving everything to his charitable foundation. His longtime companion, Darla Lexington, is asking the executor to treat her as his spouse. As Texas recognizes common law marriage, she may be entitled to a significant share of his estate. Read more on the case here: http://www.chron.com/disp/story.mpl/metropolitan/6969001.html
The problem in Texas is particularly acute as Texas recognizes both common law marriage and community property. Lexington could argue that his earnings were community property and one-half belonged to her. Non-community property states typically have an elective right to a “forced share” of around one-third of the estate.
In addition, Iowa has a unique circumstance as it is the only state that allows both same-sex marriage and common law marriage. To date, there has been no case testing the application of common law marriage in a same-sex situation.
When you have a client who has lived in a common law marriage jurisdiction, probe a little deeper to rule out the application of common law marriage. How can you craft an effective estate plan if you don’t even know if your client is married?
Stephen C. Hartnett, J.D., LL.M.
Associate Director of Education
American Academy of Estate Planning Attorneys
Direct Line: (858) 300-4739
www.aaepa.com
As we build our practices, let’s not forget that our businesses are not our lives. In the end, our law practice is just a way to serve our larger goals for ourselves, our families and our communities. It’s always good to remember the essence of the game because, if you’re like me, we get wrapped up and lost in the crush of everyday life and need to get our train back on the track.
Mother Teresa may have said it best. Let’s focus on what really matters, regardless of our fears and the apparent futility of our efforts.
“People are often unreasonable, illogical, and self-centered;
Forgive them anyway.
If you are kind, people may accuse you of selfish, ulterior motives;
Be kind anyway.
If you are successful you will win some false friends and true enemies;
Succeed anyway.
If you are honest and frank, people may cheat you;
Be honest and frank anyway.
What you spend years building, some could destroy overnight;
Build anyway.
If you find serenity and happiness, they may be jealous;
Be happy anyway.
The good you do today, people will often forget tomorrow;
Do good anyway.
Give the world the best you have, and it may never be enough;
Give the world the best you’ve got anyway.
You see, in the final analysis, it is between you and God;
It was never between you and them anyway.”
Robert Armstrong
President & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
(858) 453-2128
www.aaepa.com
Some clients are simply a delight to work with. They value your guidance, they follow your instruction and they trust that you know what you’re talking about… which is good because of course… you do.
But then other clients aren’t quite so pleasant. They question your every move, second-guess your recommendations and just generally behave as if you’re the one in need of instruction.
But that’s just part of doing business, isn’t it? Shouldn’t we assume that difficult clients go with the job?
The truth is, you should always be looking for ways to build your client base and certainly, some clients will be easier to work with than others.
But when working with a client isn’t worth the fee they’re paying, it’s time to reconsider how you choose your clients.
And you are choosing them aren’t you?
Just as potential clients do their homework before deciding on the right attorney for them, there are also right clients for you.
Clients that pay your fees without stalling or scoffing. Clients that understand the importance of estate planning and are eager to hear what you have to say. Clients that – yes, they do exist – appreciate your hard work and value the services you provide.
So, where can you find such ideal clients to target?
Perhaps the first step is to begin thinking about what you want your services to be. Rather than shaping your firm to fit the status quo, give life to your visions and tell the status quo to take a hike. Then look at what kind of client would buy your kind of services.
When you know the client you’re targeting, it’s not too hard to figure out where to find them. Maybe through some local business groups in your community such as your Chamber of Commerce or perhaps by offering a free educational seminar to businesses and their employees.
In truth, the possibilities are endless and the pickier you become about the clients you take on, the happier your law firm will be.
Robert Armstrong
President & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
(858) 453-2128
www.aaepa.com
It is often beneficial to name the spouse as the primary beneficiary of a retirement plan or IRA. In fact, with a retirement plan like a 401(k), 403(b), etc., the spouse must be named as the primary beneficiary unless they sign a “spousal waiver” consenting to having a different beneficiary named. Even if the participant were not married when they completed the beneficiary designation form, their surviving spouse would have a right to the retirement benefits unless the spouse signed a waiver. With an IRA, there is no federal requirement that the spouse be named as the primary beneficiary. However, state law may impose similar requirements on IRAs.
Naming a spouse can be advantageous anyway. Upon the participant’s death, the surviving spouse can elect to do a “spousal rollover” of the funds. If the surviving spouse chooses to do a spousal rollover, the amounts are treated the same as if the spouse had contributed the funds. There are three major advantages. First, no distributions are required until after the spouse reaches age 70 ½. Second, their Required Minimum Distributions (“RMDs”) are based on the Uniform Lifetime Table. The Uniform Lifetime Table is the joint life expectancy of the surviving spouse plus a hypothetical individual 10 years younger. For example, at age 71 the Uniform Lifetime Table would show a joint life expectancy of 26.5 years. This is important since the RMD is calculated by dividing the account balance by the remaining life expectancy. If the account had $1 million, the RMD would be $37,736. The third advantage is that when the spouse dies, his or her beneficiaries may be able to stretch the distributions over their own life expectancies.
If the spouse wanted to do so, they could do nothing and the retirement proceeds would be treated as an inherited account. At age 71, the life expectancy pursuant to the Single Life Table is 16.3 years. Thus, the RMD for that year for the same $1 million account would be $61,350. Thus, a spousal rollover would allow the spouse to stretch the payouts over a longer period of time.
There are many advantages to a rollover. However, there is one potential disadvantage to a rollover. If the surviving spouse elects to do a rollover, the account is subject to the pre-59 ½ penalty for early withdrawals. An inherited account would not be subject to those penalties if it were not rolled over. If the spouse is very young and will need most of the money quickly, the rollover may not be the best option.
As in other areas, there are special rules for a surviving spouse. Make sure you know the rules so that you don’t fall prey to them and can take advantage of them for your clients.
Stephen C. Hartnett, J.D., LL.M.
Associate Director of Education
American Academy of Estate Planning Attorneys
Direct Line: (858) 300-4739
www.aaepa.com
At the American Academy we talk a lot about the importance of systems but in order for it to really work, a few things must happen:
The first is that you need to understand why you’re creating the system in the first place. Clearly writing out the end result of the proposed system will focus your energy and give you a way to measure your success. Remember, almost everything in your estate planning firm can be systematized.
The second thing that needs to happen is that the system is actually implemented – both by you and your staff. Far too often, we begin with a grand idea of how things will work but then the technician in us succumbs to working in the business again instead of managing the system. The system will ultimately fail, not because it wasn’t a good one but because we never actually executed our plan in its entirety.
And last but not least, we have to have a way to measure the system’s results AND be willing to make some changes as we go. Many a good idea has seemed plausible in theory but once implemented, it became clear that the idea needed some work. Your systems are there to improve productivity and ultimately increase your bottom line: if they’re not working the way they should, don’t give up on the idea of systems – just modify them until they work the way you want.
Just remember that the system is there to accommodate you… not the other way around.
Robert Armstrong
President & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
(858) 453-2128
www.aaepa.com
You may recall the blog on the Daily Grind (Read here) where we discussed figuring out “what” you want to do being a tough question? But, since that has been addressed, as promised, here is the “how” to do what you really want to do!
The “how” always comes down to how you spend your time. The “how you spend your time” always includes delegation, which we’ll cover another day. How you actually get to spend your time on what you really want to do is not a simple accomplishment. It may take time depending upon your current situation.
For example, if you are currently a litigator but realize, because of some other events, you really want to practice in another area of the law, that will take some time and planning. On the other hand, you may be in the exact work situation you want to be in but lack the control over your day and time which prevents you from doing the What you really want to do.
Regardless of the situation, the starting place is to take control of your time on a daily basis. Easily said but we all know how hard it is to actually do. Here are some things you can implement immediately that will make a difference. At the end of today, take 5 minutes, maybe 10 since it is your first day doing this, and and plan your day tomorrow.
Do not try to plan every minute but rather plan certain blocks of time.
The first step is to decide what the three most important items are that you must accomplish tomorrow. How much time will they take? Then you need to also think about the normal course of activities in your day. The new big thing that has to be accounted for, or more specifically, controlled, is electronic access. Are you accessible all the time? Do you need to be accessible all the time? Can this be controlled?
Before you figure out when you will accomplish your top three items, you must control your access and when you do your best work. Once you do that, block off that time period in which you eliminate access and do your top three. For example, I personally like to do the top three first thing each day. I try to get these done by 11am each day. In addition, I do not check email before 11am. Also, I recognize that certain days or times of year, require that I check email before 11am. These are exceptions to the rule but accounted for in my planning.
Ending each day by planning the top three items to accomplish tomorrow, blocking time and limiting access is how to start spending more and more of your time on what you really want to do.
Sanford M. Fisch
CEO & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
(858) 453-2128
www.aaepa.com
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Attorney advertising, it seems, has just taken a big step in a new direction… at least in New York.
In a recent decision, the 2nd Circuit Court held that attorneys had the right to get a little creative in their advertising, and that right was protected by the First Amendment.
The plaintiffs bringing the challenge to the Rules of Professional Responsibility regulations (22 NYCRR §1200) were Syracuse-based personal injury firm, Alexander & Catalano and Public Citizen Litigation Group. The plaintiffs argued that the restrictions on nicknames (“heavy hitters” was their favorite), client testimonials and similar marketing tactics violated the First Amendment and should be struck down.
And it seems the appellate court agreed.
The court found that while the old rules did serve to ensure law firms looked professional and “dignified,” those benefits did not outweigh their First Amendment rights and should therefore be discarded.
The ad in question showed larger-than-life plaintiffs providing counsel to space aliens, an image that the State contended was “irrelevant and unverifiable.” But the court felt that while the space aliens might be a little… well, spacey, such an advertisement was considered the norm in this day and age and offered no harm to consumers.
They did uphold two of the rules however: attorneys are still prohibited from depicting fictitious law firms or giving the appearance that attorneys from one firm were actually from different firms as that could confuse the consumer. They also kept the 30 day moratorium on advertisements targeted to victims of a specific event.
The moral of this story? If the courts are beginning to realize the importance of creative marketing for law firms, isn’t it time you did too?
Robert Armstrong
President & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
(858) 453-2128
www.aaepa.com
Having served in the Marine Corps (a life time ago) I know first hand that the idea of Morale is not just a notion. It’s proof that the leaders have their act together.
Watch the news. Look at our young men and women in Afghanistan and Iraq being interviewed. Remember yourself at 20? How is it that virtual strangers, usually young and often inexperienced can function at such a high level… and with pride and confidence they may never have had before in their life. Where does it come from? It comes from the leadership. This “leadership” isn’t just how the “top dog” runs the place. The leadership referred to is something the upper echelon of the group created at some point in the history of the organization. It’s a culture that rests on vision, systems and practices. It’s a culture that is reinforced by the leadership in the organization…and everyone in the organization is a leader in one form or another.
A culture that creates confidence and high morale for the whole team may include systems and habits that ensure:
• Clear communication about the vision for the practice
• Proper training is available
• A defined role for each player on the team exists and is adhered to
• Dependable communication is delivered regarding the quality of work demonstrated by each team member
• Confidence that there is a solid career path available
• Clear rules exist that don’t change without warning and they apply to everyone
• A sense of being appreciated and knowing where one stands with the rest of the team
• A belief that what we do makes a difference
High morale—what we called esprit de corps, back in the military—is evident by the belief in and loyalty toward the organization we represent. It’s not a small thing. Without morale being where it should be, you’ll see smart military leaders send another unit to replace them. Morale is at the root of your outcomes…. good or bad.
How’s the morale in your firm? What structures exist in your culture that support the morale of the whole team? Do you have an employee handbook with clear explanations of what the rules are for everyone? Are the rules the same for everyone? Do you conduct regular staff meetings? Do you have consistent methods of providing clear feedback on performance whether great performance or marginal? Do you have a solid orientation and training plan for newly hired staff members? Do you mix in a dose of fun with all the serious work that is done in an estate planning law firm. How effective you are in these areas is something a client senses the moment they enter the reception area.
Jennifer Price
Director, Member Services
American Academy of Estate Planning Attorneys, Inc.
(858)453-2128
www.aaepa.com
One of the early lessons I remember learning from my dad was… be on time and do what you say.
The easiest way for me to consistently be on time is to sneak around and set my watch a few minutes ahead. Viewing each commitment to myself or others as an opportunity to deliver what I said I would—when I said I would, helps too!
If you look at the sheer number of things in a day that we all have opportunities to be on time for or to do what we say – it’s staggering! To me, it’s an issue of personal and professional integrity. Without systems or habits to step in and keep us on track it couldn’t happen.
When looking at law firm client service, there isn’t ANYTHING more important, or easier, than being on time (for your appointments, for the delivery of the plan, for the follow-up, etc.) and doing what you say you’ll do. In fact if you can time things so you’re a tad early, delivering a bit more than you promised—you’re the hero and you become the person clients can count on and refer business to.
Take a look at the systems that keep you and your law firm from “doing more than you promise.” Identifying the little things that are easy to address and pulling your entire staff in on how you can all make every client experience just a tiny bit better is a great conversation to start with!
Jennifer Price
Director, Member Services
American Academy of Estate Planning Attorneys, Inc.
(858)453-2128
www.aaepa.com
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