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Sometimes during our coaching calls with attorneys, it comes up that the fees collected for the services provided are too low. Typically, when you’re setting fees, are you considering the value of your advice, the experience, the time investment to produce the quality of services and peace of mind clients need…. along with the liability and overhead?
Then we look at the math: overall revenue divided by the number of estate planning “transactions” (for lack of a better word). You do want to make sure that the hours it takes to produce the type of quality work you’re providing along with the liability you’re taking on, combined with the confidence that you want clients to have in you, is incorporated into your fees. You want to look at your “average transaction” amount regularly and understand what is making it fluctuate. You may be offering more trust administration as the years go by, so your fee appears to be averaging higher – causing you to overlook your actual fee for each type of service you’re offering. Average the fees in each category of revenue. If you haven’t changed your fees recently and you see numbers jumping around – you may be guilty of quoting different fees for the same services as different clients come in. Make sure that your fees are the same each time. It’s a common problem to be in front of a client and not feel the ability to quote a specific fee, so you quote some made-up fee that in your own mind will be something the client can say yes to.
It’s worthwhile to really master your consultations so the results are completely consistent. It creates the type of situation that allows you to forecast revenue.
Keep in mind that your fees say a lot about you! If you’re the cheapest guy in town, people will think of you that way. Your fees make a statement in some ways, but they also keep your doors open. They provide for your family. In my conversations with attorneys about why their fees aren’t higher, the answers can be all over the board but generally come down to one common thing.
The attorney somehow doesn’t believe they’re worth a higher fee.
The excuses used before the attorney gets down to the real reason are often along the lines of, “The client won’t pay that,” “I’ll be the highest priced attorney in town,” “I’m just not comfortable quoting that fee.”
The thing is, if you GET comfortable quoting a fee that you’re worth, you can quote that fee just fine. And the truth is, that quoting a higher fee will not change the percentage of retention that you have a habit of achieving. Take a close look at the real reason your fees may not be as healthy as they should be and get those reasons out for a closer look. We do encourage a review of fees and services offered at least annually. Email me directly if you have questions or post your comments on the blog for a discussion if you like!
Jennifer Price
Director, Member Services, Marketing & Recruiting
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com
Online promotions can be a great way to build a fan base and engage your audience, but there are some important things to keep in mind as you prepare and execute your campaign.
- Know your marketing objectives: Increasing the number of likes on your Facebook page is great, but you should have a follow-up plan for reaching your ultimate goal — converting those likes into clients.
- Choose the appropriate channel: Are your ideal clients most active on Twitter, Facebook, or Google +? Choose the platform where you’ll have the most reach.
- Partner up, if possible: Select a worthy group in your community and make use of their list of contacts. Offer to pledge $1 or another amount for each new like/follower/connection.
- Let the promotion run for at least a month in order to have ample time to reach plenty of people.
- Ensure you’re in compliance with all applicable state laws, as well as the promotional rules for the social media platform.
- When the promotion is over, review what worked and what didn’t in order to improve your next campaign.
Above all, online promotions should be engaging, so don’t forget to bring the fun! Have you run an online contest or social media promotion? Share your experiences in our comments.
Rita Chaires
SEO and Social Media Manager
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com
Long-term care is an increasing concern in the U.S. It doesn’t take much to figure out that we are witnessing the graying of America. Baby boomers are coming of age and becoming eligible for Medicare and possibly needing long-term care. The disturbing, although not unexpected news, given the cost of health care these days, is that with long-term care, a lifetime of savings may be wiped out quickly. This is not good news, and clearly shows the need for planning in advance, to take care of this risk through long-term care insurance or Medicaid planning.
A recent study, “Effects of Nursing Home Stays on Household Portfolios ” (EBRI Issue Brief, no. 372, June 2012) made the following findings:
- Admissions to nursing homes for those 65 and older have risen from 6% in 2000 to 8.5% in 2010.
- Nursing home stays negatively affect a household’s assets.
- Long-term care insurance purchases have increased over the last ten years, but coverage is low.
- For those who spent six months or longer in a nursing home, roughly 50% were covered by Medicaid.
- Once a senior had been admitted to a nursing home, household assets/wealth declined steadily.
- On average, household wealth drops to zero within six years after someone is admitted to a nursing home.
It is never too early for clients to start long-term care planning. It may be the smartest move they ever make. With an Elder Law practice, you can help clients protect some of their household wealth from the greatest asset protection risk they will likely ever face: the nursing home.
Stephen C. Hartnett, J.D., LL.M.
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
If you are planning on giving a presentation for Continuing Education (CE) or Continuing Legal Education (CLE), don’t forget to double check your to do list… before and after your presentation.
Most states require a 60-day timeframe for course approvals, however, some require 90 days. It’s best to go online for your state to see what their requirements are. This will depend on the designation you are submitting for CE or CLE. Here are some basic guidelines to submit for CE and CLE:
- Which designations are you submitting approval for
- Is your provider status current for each designation
- See if your state requires instructor approval
- Do you submit online or hardcopy
- Create a detailed outline for your presentation
- Complete course approval application
- Prepare critique for presentation
- See requirements (does approval need to be posted)
- Certificate of Attendance prepared (your certificate or state form)
- Have attendee complete critique, collect as they sign out
- Complete certificate of attendance based on hours of attendance
- Submit attendance roster (online or hardcopy)
- Submit any fees associated with attendance reporting
- Mail attendee their Certificate of Attendance with reminder for them to keep the certificate in their CE/CLE file for their records
Make sure you keep a complete copy in your file for 3-5 years, depending on what your state requirements are. You will most likely be contacted by at least attendees who have misplaced a certificate, not to mention you can be audited any time by your State.
Donna Higgins has been working with the American Academy of Estate Planning Attorneys since 1999. She has spent most of that time working with the legal education department as well as qualifying Academy courses and Summit training sessions for CE and CLE throughout the country.
Donna Higgins
Executive Assistant / CE/CLE Administrator
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com
The pair of pears on my desk reminds me of the importance of careful word selection, particularly in business communications. Homophones – words that are pronounced the same, but have different meanings – can be easy to misuse. Spell check isn’t going to point out to you that you’ve used the incorrect form of two/to/too, for instance, but picking the wrong option can jeopardize the credibility of your otherwise brilliant blog.
One of the most commonly misused sets of homophones is they’re/their/there. When you need to use one of these words in your writing, take a moment to think through what you’re actually trying to communicate – the contracted form of “they are,” a possessive pronoun that should be followed immediately by a noun, or an adverb which often refers in some way to a place. Look up your choice at dictionary.com if you’re (not your) still unsure.
Other commonly confused homophonic sets include compliment/complement, stationary/stationery, bear/bare, and air/err/heir. You can easily find lists of homophones on the internet, such as the one here (not hear): http://www.cooper.com/alan/homonym_list.html. Taking a moment to browse through one of these lists can be fun and might save you from an embarrassing gaffe (not gaff) in the future.
KD King has been with the Academy since 2010. She supports the membership by coordinating all manner of projects and conference call details, as well as by compiling data for a variety of studies conducted by the Academy. Her background is in writing, teaching, and business management.
KD King
Member Services Coordinator
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com
The most important point to remember about irrevocable trusts is flexibility. When drafting a trust, it is best to craft it to allow the greatest possible flexibility, by allowing the trustee to withhold or distribute income and corpus.
If the trust is a non-grantor trust, flexibility allows the trustee to minimize income taxes for the trust and its beneficiaries. For example, if the trust earns $10,000 with no distributions, it is taxed on $10,000, with the beneficiary not being taxed on anything in relation to the trust. If there are distributions to the beneficiaries, those carry out distributable net income and taxation to the beneficiary. In 2012, after the first $11,650 of income, trusts are taxed at 35 percent for individuals. Nonetheless, there are good reasons to have as much flexibility as possible.
Perhaps more importantly, flexibility avoids forcing distributions that may result in assets being seized by creditors. If the trust is in a high bracket and the beneficiary is in a very low bracket, normally you’d want to distribute. However, if there are creditors waiting in the wings to seize the assets, the beneficiaries low tax bracket combined with the seizure by the creditor, amounts to a 100% loss of assets. This may also happen if the beneficiary is in the throes of a divorce. Forced distributions may go to the spouse, depending on the laws of the state of residence.
A trustee has discretion in making or not making distributions for compelling reasons that may include, but are not limited to:
- beneficiary not 18-years-old
- is a special needs individual
- how susceptible they are to undue influence or duress
- substance or alcohol abuse
- marital issues, such as separation, dissolution or divorce
- inability to manage money
- serious tax disadvantages
Extraordinary Flexibility
You also may draft extraordinary flexibility into a trust document, by allowing a non-related special co-trustee, or trust protector, the power to modify the trust in a variety of ways.
The powers may include, but are not limited to:
- Making distributions and performing other acts that would cause the trustee conflicts or tax problems
- Modify beneficiary interests upon change of circumstances
- Amend the instrument for particular reasons
Staying on top of the rapid changes in the area of irrevocable trusts means clients get the benefits of thorough and thoughtful estate planning.
Stephen C. Hartnett, J.D., LL.M.
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
Estate planning attorneys see it all the time. Most clients avoid the funeral planning conversation, even though advance planning can reduce stress at a time of grief, save money and head off family conflict.
We have ample evidence that humans have a 100% mortality rate. It’s not a matter of “if” but “when” and the universe doesn’t tip its hand to let anyone know when that time will be. How can you help your client families be prepared in this arena?
Consider recommending a few of these tips to help start the conversation.
- Shop Before You Drop: If your car died, wouldn’t you think about what you wanted, do some research and shop around before you bought a new one? Apply that sensibility to funerals before someone dies. Knowing the costs and what is involved saves money and reduces stress when a death in the family actually occurs.
- Watch a Funny Film: Laughter can help circumvent discomfort with death. Laugh and learn by screening comedy movies like Undertaking Betty, Elizabethtown, or The Six Wives of Henry Lefay. Comedy can lead to conversation after the film ends. Here’s a list of funny film recommendations.
- Watch a Serious Video: The 30-minute DVD Making Sense of Final Arrangements and Burial Costs shows how to make those phone calls to funeral homes without embarrassment. This DVD project by Kristen Lord, a funeral director intern and hospice volunteer, illustrates the simple steps it takes to make smart funeral planning choices and become an informed consumer of funeral and burial costs. Learn more about the DVD Making Sense of Final Arrangements.
- Lead by Example: If parents or a partner avoid the funeral planning topic, make your own plans and invite the other person(s) to come along for the ride. It’s a fascinating shopping trip. Anyone up for a trip to the cemetery to browse for burial plots?
- Play The Newly-Dead Game™: Based on the premise of the classic TV show “The Newlywed Game,” this card-based game tests how well you know someone else’s last wishes. You can use it to start the conversation with life partners, parents, or anyone else for whom you might be called upon to plan a funeral. Learn more about The Newly-Dead Game.
Encourage clients to take some time to think about how they would like to be remembered and celebrated. The family’s experience of a funeral or memorial service is so much better when a loved one expresses their desires and values before dying. It’s an important aspect of legacy planning.
Certified Celebrant Gail Rubin 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, won Best of Show in the 2011 New Mexico Book Awards. The book is available in print and e-book formats at Amazon.com, Barnes&Noble.com, and at AGoodGoodbye.com. Contact her at 505-265-7215 or email Gail@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
If someone told you not to insure your house, you’d think they were insane. That holds your whole life. If someone said not to bother insuring you vehicle, you’d snort in derision. You need protection from other drivers. If someone asked you if your firm of estate planning lawyers sends client’s personal credit card information to others by email, you’d say absolutely not, it is not safe. If someone told you they had their identity stolen and their credit cards maxed out, you would hope it would never happen to you or your company. What a nightmare. Can you imagine?
And yet – law firms are still sending complete credit card information in emails – unsecured emails that anyone could hack into. How safe is that? Think about that for a minute. All of your personal or law firm’s credit card information, including the security code, in an email anyone could intercept. Would you want anyone to see your personal, or law firm credit card information? Would you want anyone else using it? Chances are, the answer is a resounding “No.” So why is this private information being sent via email?
It does not matter how trustworthy the person or company you’re emailing this sensitive information is. Credit card information in emails is risky, dangerous and leaves you and your firm wide open for phishing scams, identity theft, and a whole host of other criminal behaviors. Never, ever email the complete card information. It may seem outdated these days, but pick up the phone!
We never want to see you in a bind with purloined credit card information. If you have sent anyone credit card information in an email, wipe out the email you sent the information in permanently, by holding down the Shift key while pressing Del. This ensures an item cannot be recovered, as it bypasses the Deleted Items folder in Outlook. It also works with folders. There are other methods, and they may be researched online.
Lori McDonald has been managing the accounting department for The American Academy of Estate Planning Attorneys since 2006.
Lori McDonald
Accounting Manager
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com
In what many consider to be a decision that is long overdue, a federal judge has ruled that the Defense of Marriage Act’s (DOMA) denying equal benefits to same-sex couples violates the equal protection clause of the Fifth Amendment. This recent ruling was handed down as a summary judgment to plaintiff Edith Windsor.
Windsor sued the government for not recognizing her 2007 marriage, in Canada, to her partner of 44 years, Thea Spyer. As a result of that denial, and the resulting unavailability of a marital deduction, Windsor paid out $363,000 in federal estate taxes on the death of her spouse.
In Windsor v. United States, the court ordered the government to repay the widow the money it had taken from her in federal estate taxes, thus setting a precedent for other jurisdictions with similar cases.
This is more than a legal victory in recognizing the rights of others. It is more than the fact that this is the fourth judge to rule against the Defense of Marriage Act. If the decision stands, it means that State marriages would receive federal recognition, and that married same-sex clients could file joint income tax returns, get marital deductions for gifts and estate taxes, etc.
Same-sex clients often want to use married joint trusts. Currently, this is not advisable because of the lack of federal recognition of the relationship. In the eyes of the federal authorities, including the IRS, the couple is two single individuals who are unrelated to each other. The Second Circuit has yet to rule on this case. Then, presumably, the case will be appealed to the Supreme Court. If the Supreme Court grants cert. and reaches the same conclusion as the District Court, only then should same-sex clients use joint trusts.
Stephen C. Hartnett, J.D., LL.M.
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
Last week I took a vacation cruise with my extended family. On board were my husband and kids, my parents, my siblings and their families, and even their in-laws. It wasn’t even our first cruise together. (The first was to celebrate my parents’ 50th wedding anniversary.) I readily admit that a cruise isn’t my ideal vacation for a romantic getaway with my husband, or even for a vacation with my immediate family. But I have discovered this: a cruise makes for an excellent multi-generational family vacation.
Why am I talking about this in an estate planning blog? Because as an estate planning attorney, you spend most of your time with clients helping them plan for one sad but inevitable event (their death) and also for unpleasant contingencies (like disability and divorce).
So once in a while, might it be nice to encourage clients to plan for something enjoyable during their lifetimes – like a multi-generational vacation? After all, your job is to help clients leave the legacy that they desire. Part of that legacy is about spending time with family and making indelible memories. And this can be especially challenging when families are far flung.
Here’s why a cruise can be such a good vehicle (bad pun intended) for an inter-generational vacation: During the day, everyone does their own age-appropriate thing. Grandparents enjoy themselves and move about the ship at their own pace. Adult children can be with their parents as they need or want to be, or enjoy time to themselves. Teenage grandchildren can roam the boat freely. Younger children can attend the “kids’ camp” or be occupied in the kiddie pools. At the ports of call, a variety of age-appropriate excursions are available. Then, in the evenings, everyone has dinner together, and the togetherness can continue (or not) at the evening entertainment or other venue on the ship. Perfect.
So what should you do with this info? Of course I am not suggesting that your firm become a travel agency. Here are some ideas for what you might do to introduce to clients the concept of planning some multi-generational fun:
- Mention this idea in your client newsletter some time. “When it comes down to it, what most of us value about our families is spending time together…” “Have you been wanting to get your family all together on a vacation?” Some clients use a vacation home, cabin, or timeshare as a way to collect the family together, but not all clients have that option.
- Have some fun with this, too: Invite a travel agent to give a seminar for existing clients on good opportunities for inter-generational bonding through vacationing. Perhaps even find one who specializes in family or inter-generational travel. (While travel agents have largely become extinct for plane reservations, they still exist for planning cruises and other package vacations.). Consider asking the agent to offer a discount to clients who book with them as a result of the session, if this feels appropriate. .
- If you have an annual client maintenance program or employ a life care planning approach, consider offering this presentation as one of the program’s benefits. Ask the agent to donate some item or discount that can be raffled off at your annual client meeting.
- Suggest this idea to clients with family members who have physical disabilities or special needs. A cruise can actually be an excellent vacation option for folks with physical disabilities, whether old or young. Virtually everything is wheelchair accessible. The ship I took last week even had handicap lifts into the pool and hot tub, as well as extra-wide wheelchair accessible staterooms.
Let me know if you try any of these ideas and how it goes, so I can share with others. And in the meantime, enjoy your summer vacation!
Randi J. Siegel, MBA, is the President of DocuBank (docubank.com), the largest advance directives registry in the U.S., which ensures that the emergency information and healthcare directives of its 200,000 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. A member of the International Society of Advance Care Planning, she is active in health policy and health education related to advance care planning and advance directives and serves as Pennsylvania liaison to the National Healthcare Decisions Day initiative. 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
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