Estate planning attorneys are in a unique position to protect their clients from financial elder abuse.

Like those suffering other kinds of abuse, elders who are being financially victimized are not likely to call attention to the abuse or to be proactive in seeking help. In fact, they may not even realize they are being abused. However, because of the work we do, we get glimpses into areas of our clients’ lives that are often hidden even from those closest to them.

Signs of Abuse

Would you recognize it if your client were a victim of financial abuse? Here are some warning signs, which may (but not necessarily do) indicate possible financial abuse:

• An elderly client (defined as someone age 65 or older) who is accompanied by a friend, relative or caregiver who seems to influence or control the client’s transactions, while the client remains passive
• Changes in an elderly client’s financial account beneficiaries
• Accounts with new authorized signers or joint account holders
• A caregiver offering care in exchange for access to bank accounts or other assets
• A sudden change in an elderly client’s financial status or financial account activity
• Changes to property titles
• New financial arrangements an elderly client seems confused about or unable to explain
• A diminishment in an elderly client’s level of personal care or hygiene, particularly when her financial means would suggest a higher standard of care

Who Are the Abusers?

Financial abuse makes up a significant proportion of all the elder abuse cases reported each year. In a 2004 National Center on Elder Abuse Study, 15 percent of elder abuse cases involved financial exploitation. And while we’d like to think financial abuse of the elderly is committed by sleazy telemarketers or door-to-door salesmen, 66 percent of abusers are family members of the elder.

Your Role

There are plenty of legitimate reasons for elders to transfer their assets, but remember that as an estate planning attorney, you’re in an excellent position to protect clients from illegitimate transactions. Be alert to transactions involving your elderly clients and make sure they understand what they are doing and that they are acting of their own free will. Pay attention to your instincts.

Stephen C. Hartnett, J.D., LL.M. (Tax)
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

I was recently watching a professional football game where they had a family down on the field honoring them for the service of their son who was serving our country in Afghanistan. As the announcer was describing this impressive young man, he appeared on the field and surprised his family who thought he was still overseas fighting for our country! The joy that they had was contagious and I found myself tearing up at this wonderful reunion.

This also made me think of all of the veterans we serve at Legacy Safeguard that believe since they are veterans that their funeral expenses are completely paid for because they served our country. In fact, many veterans believe that the Department of Veterans Affairs (VA) will pay for their funeral expenses.

While the VA does provide burial allowances, they are in fact partial reimbursements of an eligible veteran’s burial and funeral costs. When the cause of death is not service related, the reimbursements are generally described as two payments: (1) a burial and funeral expense allowance, and (2) a plot or interment allowance.

According the VA website, http://www.va.gov, if you are a veteran you may be eligible for VA burial allowance if:

• you paid for a veteran’s burial or funeral, AND

• you have not been reimbursed by another government agency or some other source, such as the deceased veteran’s employer, AND

• the veteran was discharged under conditions other than dishonorable.

In addition, at least one of the following conditions must be met:

• the veteran died because of a service-related disability, OR

• the veteran was receiving VA pension or compensation at the time of death,  OR

• the veteran was entitled to receive VA pension or compensation, but decided not to reduce his/her military retirement or disability pay, OR

• the veteran died while hospitalized by VA, or while receiving care under VA contract at a non-VA facility,  OR

• the veteran died while traveling under proper authorization and at VA expense to or from a specified place for the purpose of examination, treatment, or care, OR

• the veteran had an original or reopened claim pending at the time of death and has been found entitled to compensation or pension from a date prior to the date or death,  OR

• the veteran died on or after October 9, 1996, while a patient at a VA-approved state nursing home.

Now for the big question…How Much Does VA REALLY Pay?

Service-Related Death. VA will pay up to $2,000 toward burial expenses for deaths on or after September 11, 2001. If the veteran is buried in a VA national cemetery, some or all of the cost of transporting the deceased may be reimbursed.

Nonservice-Related Death. VA will pay up to $300 toward burial and funeral expenses and a $300 plot-interment allowance for deaths on or after December 1, 2001. If the death happened while the veteran was in a VA hospital or under VA contracted nursing home care, some or all of the costs for transporting the veteran’s remains may be reimbursed.

While these are good benefits, they won’t usually cover the cost of a funeral. Many veterans are disappointed when they learn that the government doesn’t pay more for their funeral expenses. This false sense of security can lead to a lot of stress for families when a veteran passes away. This is why proper final expense planning is so important for all of our clients. Therefore, be sure to educate your veteran clients about the reality of the benefits that they are entitled to, so this doesn’t happen to them.

Funding a Funeral Trust and enrolling your veteran clients in Legacy Safeguard is another service you can provide not only for the veteran, but for their family. This will not only ensure their family is not left with the burden of having to pass the hat to pay for their funeral, but gives them a powerful venue through the Legacy Safeguard to detail the memories they want to pass down to their loved ones. Legacy Safeguard can also assist the family as they plan to honor their veteran when the need arises. We will be proud to stand by you and assist you as you support those who have done so much to preserve the freedom of our great nation.

Bryan W. Adams is President & CEO of Premier Planning, LLC and Founder of Legacy Safeguard. Bryan is considered one of the nations’ leading experts on final expense planning, and he frequently speaks throughout the country about the importance of assisting clients to gain peace of mind through advanced funeral funding.

Bryan’s passion for helping families prepare for their final expenses came from being raised in the funeral business. His family still owns and operates several funeral homes, and he is constantly amazed at how unprepared families are when a death occurs. Bryan has worked tirelessly to help Americans plan for the inevitable and lessen the burden on their loved ones.

Academy Guest Blogger
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

The 2012 Presidential campaign is under way, and among the issues it has spotlighted is the federal estate tax. Setting aside any political issues, I believe an estate tax can be a good thing from the standpoint that it motivates people (albeit for the wrong reason) to do what is in their best interests, which is to create an estate plan for their family.

Nevertheless, given the current state of the law, and assuming that any of the tax proposals being discussed by potential presidential candidates gain any traction (e.g., that there should be no estate tax), then it seems that the focus of the estate planning community needs to continue to be that people should do estate planning for all the other great reasons that exist, such as protecting their heirs from predators and from their own financial inexperience or passing along their non-financial legacy.

In other words, if the clients came to the office solely for taxes, then the clients missed the point.  The primary goal should be to plan/care for those who cannot plan/care for themselves, minimize the grief associated with the loss of a loved one by providing an administration process superior to probate, and setting the example of being good stewards of the family’s wealth and legacy.

From my perspective, estate planning attorneys will still have jobs regardless of who wins in November.

About the author: Stephen A. Mendel is a trial, real estate, business, and estate planning/probate attorney in the Houston, Texas area. Mr. Mendel has over thirty-four (34) years of business experience, over twenty-three (23) years of legal experience, and has maintained his own private law practice for the past sixteen (16) years. Mr. Mendel is a also a registered architect, licensed real estate broker, AV rated by Martindale Hubbell, was recognized in 2010 as one of Houston’s Top 100 Professionals, and was recognized as 2011 Boss of the Year by the Houston Association of Legal Professionals. Mr. Mendel was a fulltime faculty member for five (5) years with the University of Houston, Central Campus, where he taught construction related courses while he attended law school. Mr. Mendel is a contributing author of four books:  (1) Strictly Business; (2) Love, Money & Control; (3) Total Wealth Management; and (4) Guiding Those Left Behind in Texas (a book on probate). Mr. Mendel publishes his own blog for his estate planning clients. www.mendaellawfirm.com/blog. In his “spare” time, Mr. Mendel enjoys jogging with his wife, snow skiing and attending sporting events with his son, and cycling.

Academy Guest Blogger
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

FDIC insurance is confusing, especially when it comes to entities. Clients often ask about it, especially since the financial crisis of 2008. Here’s a quick breakdown of the current rules affecting common types of deposit accounts:

The Basics: The FDIC insures deposit accounts at most – but not all – banks and savings associations. Account holders can call 1-877-ASK-FDIC if they’re not sure whether their financial institution is covered. FDIC insurance covers checking accounts, savings accounts, money market accounts, CD’s and NOW accounts. It does not cover investments such as mutual funds, annuities, stocks, bonds, and life insurance policies.

Coverage Amounts: The default rule is that a depositor can have up to $250,000 in fully insured funds on deposit at a single insured bank. Different branches of one financial institution are considered the same bank for FDIC purposes. However, a depositor may qualify for more than the default amount of FDIC coverage if he owns accounts in different ownership categories at the same bank.

Single Ownership: An account owned by one person with no co-owners and no beneficiaries is insured for up to $250,000. If the same person owns multiple accounts in the same manner at the same institution, the same $250,000 maximum applies.

Joint Ownership: An account with more than one owner and no beneficiaries is insured for up to $250,000 per owner.

Revocable Trusts: The FDIC recognizes two categories of revocable trust accounts. Informal trust accounts include payable on death (“POD”), in trust for, Totten trust, and testamentary trust accounts. Formal trust accounts are those established pursuant to living trust or family trust documents. Both categories of revocable trust accounts are subject to the same rules, and coverage depends not only on the number of account owners, but also on the number of trust beneficiaries.

For trust accounts with five or fewer beneficiaries, each owner’s share of the account is insured for up to $250,000 for each trust beneficiary – regardless of the beneficiary’s interest under the trust agreement.

For trust accounts with six or more beneficiaries, each owner’s share of the account is generally insured for the total of the beneficiaries’ actual interests in the trust account (not to exceed $250,000 per beneficiary) or $1.25 million, whichever is greater.

Irrevocable Trusts: For irrevocable trust funds, FDIC insurance is tied to the trust beneficiary rather than to the account owner. In general, the FDIC adds together a beneficiary’s shares of all the irrevocable trust funds on deposit by the same settlor at a single bank and insures the beneficiary’s portion of the deposited funds for up to $250,000. However, the exact extent of coverage depends heavily on the terms and conditions of the trust itself.

For a firsthand look at how deposit insurance rules work for different types of accounts, you can use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) tool.

Stephen C. Hartnett, J.D., LL.M. (Tax)
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

I have walked through the valley of the shadow of death. After 30 funerals in 30 days, to quote The Grateful Dead, what a long, strange trip it’s been.

No, my circle of family and friends has not been decimated. I did not personally know any of these people, but met them through the local obituaries. I documented their goodbye services on The Family Plot Blog as the 30 Funerals in 30 Days Challenge.

As the self-proclaimed “Doyenne of Death,” I undertook this challenge for three reasons:

1. To illustrate the many creative ways people celebrate the lives of those they love,
2. To help reduce a fear of talking about death – something that will happen to all of us, and
3. To show that funerals are a life cycle event much like a wedding, best planned more than a few days in advance.

I have witnessed such a wide range of events, both religious and non-religious.

Early on, there was Howard Strunk’s memorial luncheon at a bowling alley bar. Josie the bartender put it together because Howard’s wife didn’t want to have a funeral for him. Memorial services are for community, not just for the family.

Sam Baxter’s celebration at Balloon Fiesta Park took the cake for Memorial Service of the Month. He brought the Adams family of balloons to New Mexico in the 1980s. As his first two Adams balloons stood tethered, the several hundred assembled let fly a raft of multi-colored helium balloons. Then more than two-dozen hot air balloons took flight on a perfect day for flying, followed by a tailgate party of grand proportions.

Erika Langholf’s celebration of life was exactly that. The event at a funeral home chapel combined laughter and tears, with many stories told by family and friends. She was born in 1958, and the music reflected the era in which she came of age, including Queen, Rod Stewart, Journey, and, reflective of Erika’s keen sense of humor, “Spirit in the Sky” by Norman Greenbaum.

Even within the confines of an established ritual, funerals can be personalized.

Lonnie Chavez’s funeral at Our Lady of Sorrows Catholic Church followed the form for a funeral Mass. However, as soon as I walked into the church, I could tell Lonnie was a Dallas Cowboys fan. From the blue casket with the team logo and blue and white flower arrangements, to both the deceased and the pallbearers in Cowboys football jerseys, what a way to ride off into the sunset.

Here are a few statistics from the 30 Funerals in 30 Days Challenge:

• The oldest person memorialized was a 90-year-old; the youngest was a 25-year-old.

• Sixteen of the deaths could be considered expected (long-term illness or advanced age) and 14 were unexpected (heart attack, stroke, accident, or medical mishap).

• Of all the event locations, 11 were at a funeral home, six were at houses of worship, five were in cemeteries, and eight were held in other settings, including at a private residence, at the Albuquerque International Balloon Fiesta Park, in a Japanese garden, at an open space picnic area, and at the German American Club.

• Thirteen of the events (nearly half) were creative celebrations of life with little or no religious references, or some spiritual readings but not a religious service.

Of the 30 events, almost half of these deaths were unexpected. Since we never know when our number will be up, it’s vital to have a conversation today about how you’d like your life to be celebrated. Time may be shorter than we may think.

Gail Rubin is a Certified Celebrant who brings light to a dark subject and helps get funeral planning conversations started. Her award-winning book, A Good Goodbye: Funeral Planning for Those Who Don’t Plan to Die (Light Tree Press), was ForeWord Reviews’ Book of the Year Award finalist in the Family & Relationships category. The book is available in print and ebook formats at Amazon.com, Barnes&Noble.com, and at AGoodGoodbye.com.

Academy Guest Blogger
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

Attorneys are really good at the daily grind. We spend a lot of our time working inour businesses, doing things like:

• meeting with clients and prospective clients
• drafting and reviewing documents
• answering questions no one else in the firm is qualified to answer
• staying on top of changes in the law
• keeping documents and forms updated
• putting out the myriad fires that always seem to crop up

Problem is, if you want your law firm to grow, you have to allocate time to step outside the daily grind and work on your business. This is where many attorneys go wrong – they spend all their time at the office working in the business and they become really good lawyers. Then they wonder why, despite their legal expertise, their firm is struggling.

Growing a successful law firm means wearing two hats. You’re a technician who uses your legal knowledge and training to provide valuable services to your clients. But you’re also an entrepreneur, and that means thinking strategically about where your business is now, where you want it to go, and how to get it there.

As counterintuitive as it may seem, the simple act of pressing the hold button on your current to do list and taking a critical look at the current state of your practice can lead to some pretty significant results. Allocating regular time for real-world planning gives you the perspective you need to steer your law firm in the direction you want it to go, rather than reacting day-by-day or minute-by-minute to endless pressures and demands.

Scheduling time on your calendar every day for strategic planning – also known as working on your business – is a foundational step in transforming your practice into a successful law firm.

Sanford M. Fisch
CEO & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

Aside from his genius, Steve Jobs had two characteristics that have been repeatedly highlighted by the press since his death: he was a meticulous planner and he was an intensely private man with regard to his personal life.

Not surprisingly, these qualities appear to have combined in Jobs’ estate planning. Unlike other well-known people who have died in recent years, it looks like Steve Jobs had a solid plan in place to accomplish his final wishes. We’ll probably never know the details of those final wishes, because part of his plan was to guard his family’s privacy zealously.

I have written here of how other famously wealthy people, such as Bill Gates and Warren Buffet, have decided to leave a legacy through philanthropy. While interested in charitable endeavors, Steve Jobs reportedly declined to make such a public commitment. He preferred to keep his private life just that, private.

That’s why, at first blush, it seems out of character that the fiercely private Jobs gave Walter Isaacson carte blanche to write his authorized biography. Until you learn the reason behind Jobs’ decision. According to Isaacson, Steve Jobs approved of the biography and participated in a series of interviews with the author because he wanted his kids to know him and understand why he had not always been there for them. In other words, always the planner, Jobs used the biography as one way to leave his kids a priceless, non-financial legacy.

Most people do not approach estate planning in the big-picture way Steve Jobs did. I would be willing to bet that many estate planning attorneys do not encourage their clients to take a broad view when it comes to leaving a non-financial legacy. Until very recently, this approach just has not been on the radar screen for most estate planning attorneys.

Do you venture beyond financial issues to counsel clients on how to use planning strategies to make sure their kids and grandkids know them, or otherwise encourage them to leave a non-financial legacy? If you do, how do your clients respond? What are the most successful strategies you’ve found for helping your clients leave a non-financial legacy?

Stephen C. Hartnett, J.D., LL.M. (Tax)
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

Making decisions about medical care can be a daunting proposition – we know this from our own experiences. Start with the sophistication of diagnoses, add the complexity of medical procedures, and top it off with a menu of treatment options. Deciding what to do can be a recipe for anxiety, paralysis and/or self-doubt – even among those who are highly informed.

A new book takes on the task of helping people make the medical choices that are right for them. Your Medical Mind, by Drs. Jerome Groopman and Pamela Hartzband, begins with a fundamental assumption: there is often more than one correct decision for patients. It then tackles how patients can go about determining what care they want. In addition to coaching readers to gather the factual information about their options, the authors help people understand how their personal values – their goals, dislikes, and fears – can inform what medical decision is best for them.

Your Medical Mind helps people understand how they view medicine and medical treatment, whether  as doubters (who tend to worry about the side effects or risks of treatment) or believers (who are convinced that the treatments or approaches will work and prefer to “do something”) or as a blend  between these two extremes. They also suggest that patients look at the effect that the options will have on their lives and why these either matter or don’t matter to them.

Understanding and recognizing this can help patients make choices they are more comfortable with, and it can help doctors guide these patients to choices that are better suited for their beliefs and values. For instance, one patient didn’t want surgical thyroid removal for Grave’s disease because he didn’t want to be forced to take a pill every day. Another preferred the surgery because he wanted to “just get it over with” and move on with his life.

The significance of this book’s approach to decision-making is amplified when clients are faced with serious or end-of-life decisions about care. This is exactly the role that advance directives try to play. And it is also, I would argue, exactly the kind of conversation that’s particularly important for patients and health care surrogates to have. It is important for clients’ health care agent(s) to know, fundamentally, what the clients’ goals are when facing an end-of-life or other serious condition. And this includes even going that next step further – WHY is that the goal? Or WHAT does the person like or not like about that option? This will help clients communicate to their agent what’s really important to them. Is the goal to live without pain? To be able to tell jokes and watch Sunday afternoon football regardless of one’s physical abilities or limitations? To be able to take a Sunday afternoon stroll, even if one’s memory is lacking?

This book, and others like it that attempt to help clients dig below the surface level of their decision-making, may be useful tools for clients and their loved ones. It may be especially helpful to clients and their agents in talking about some of the big end-of-life treatment questions. Having additional language and another way to frame the conversation can only help.

Please let me know if you recommend any tools or resources that help clients and their surrogates improve their communication, complete more informed advance directives, or make better medical decisions. I am interested in learning from your experiences.

Randi J. Siegel, MBA, is the President of DocuBank (docubank.com), the largest advance directive registry in the U.S., which ensures that the healthcare directives of its 190,000 enrollees are immediately available 24/7/365. Working with estate planning professionals since 1997, Randi frequently speaks at national estate planning conferences and has appeared on radio and television as an authority on registries. She is active in health policy pertaining to advance directives and serves as a Senior Fellow at the Jefferson School of Population Health in Philadelphia. Randi is an ongoing contributor to the Academy blog.

Academy Guest Blogger
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

Here’s a quick question: right now, today, is your firm earning enough revenue and do you have the time you need to do the things you want – both in and out of the office? If the answer is “no,” indulge me for a few minutes. Grab a pen and a piece of paper and jot down the answers to these three questions:

1. What amount of money would you like to see in your firm’s bank account – or even in your personal bank account – next Friday so that you’d know your law firm is working the way it should? This should be congruent with the dream you had on the day you welcomed your first client?
2. How many days would you work in an ideal week?
3. How many hours would you work in an ideal day?

When you’re answering questions two and three, keep in mind that ideal means ideal. Don’t be a wimp and go from seven 12-hour days to six 10-hour days. Dare to dream!

What is the point of this little exercise? You can make the answers to these three questions your reality. If you’re an Academy Member and you’re reading this, you already know what I mean. Many Academy Members make their financial goals and have four-day workweeks. One Member works a three-day week and earns as much today as he ever has in his long career.

If the numbers you’ve just written down aren’t yet your reality, keep watching the Academy blog. Sanford Fisch and I will have some practical strategies in the coming weeks to move you closer to your goals. We believe that having a successful law practice doesn’t mean you have to sacrifice balance in your life. The answer, as you’ll find out, is having a clear proven template to show you the way.

Robert Armstrong
President & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

In my last post, I talked a little about intergenerational joint tenancy. Although it seems like an attractive strategy to some clients, adding children to assets as joint tenants in an effort to avoid probate has enough unintended consequences – both during a client’s lifetime and after – that it’s rarely the best option.

One of the unintended consequences of joint tenancy that can have particularly damaging effects during a client’s lifetime has to do with Medicaid eligibility.

Let’s say a father anticipates the need for nursing home care within the decade. He knows he won’t be able to afford to pay for the expenses out-of-pocket, so he wants to qualify for Medicaid eventually. If he gifts assets to one of his children, the five-year clock starts running for Medicaid eligibility purposes. Five years from the date of the gift, the assets dad gifted away are no longer reportable. So, if dad applies five years later, he is not penalized for having made the gifts.

Not so if he makes his child co-owner of his assets as a joint tenant with rights of survivorship. At least as to bank, brokerage, and similar accounts, the gifts are not complete because dad could get the money back unilaterally. Thus, dad still owns 100% of those assets.

What’s the solution? One strategy would be for dad actually to give half his assets to his child in tenancy-in-common. Since this means relinquishing control of the property, it is considered a completed gift that would start the 5-year clock running for Medicaid purposes. Of course, the other half of the assets, which was retained by dad, would still be considered a countable resource for Medicaid purposes. Similarly, dad could give a 100% interest in half the asset to the child.

Let’s put some numbers to this. Dad has $100,000 in a brokerage account. Otherwise, dad is financially qualified for Medicaid. If dad puts the account in joint tenancy with his child, after five years he still does not qualify because he has not made a completed gift. If dad puts the child on the account as a tenant-in-common, he still has $50,000 as a countable resource. Of course, if he gives the entire account to the child, it would not be a countable resource and he would not have to report the gift after the expiration of the five-year look-back period.

Thus, joint tenancy turns out to be the least attractive option, at least in this case, for Medicaid and many other reasons.

Stephen C. Hartnett, J.D., LL.M. (Tax)
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com