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Attention Academy Attorneys:
TAX LAW WEBSITE POSTING
As we wait for the final word on how the estate tax laws will be changing, we created a Tax Law posting for all member websites under their Law Firm News section. If you would like to edit it, you can do so through the website control panel. The posting is titled “The Estate Tax Ball is About to Drop!” Be sure to send an eAlert referencing this posting and link to it on your Facebook page.
Once a new law is passed, here is what will happen
Education CCC
The January Education CCC topic is “Estate Tax Deja Vu” which will discuss the changes as they stand as of the date of the call.
Academy Tax Law Update Items
Each year the Academy updates marketing materials and interactive portions of member’s law firm websites when the laws change. As soon as we know what the tax law will be, we will focus on updating the following items for members:
All of these updates will be made available as they are completed:
- Education provides eAlert announcing changes to consumers and professionals
- Legacy Wealth Planning and Estate Planning Seminars and Handouts
- Tax Law Insert for Newsletter and Handout stock
- Member’s Law Firm Website copy and announcements
- Seminar Advertising and RME Direct Mail
- New Estate Planning Articles
This labor intensive process involves Education, Member Services and Web Services and it typically takes 8—10 weeks. We will post and announce these items as soon as they become available.
The current slides in your seminars refer to the exemption going down to $1 million on January 1, 2013. KEEP THEM IN THE SEMINAR until the law changes. Some of this confusion can bolster your point about how unpredictable Congress has always been. Emphasize that this is no excuse to postpone planning. Pause and ask the audience what reasons most people are planning for.
Happy Holidays!
Susan Russel
Director of Member Services
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com
We recently were reminded of the impact each of your firms have on your clients and community. Last week we attended our annual law firm holiday open house. It is a wonderful reminder of many things. Much of what we have focused on comes to life when we walk into the Armstrong, Fisch & Tutoli Law Firm and are greeted by our staff and clients. Although we are not there day to day, the faces of everyone confirmed that our “why” is alive and well. The most memorable are the client comments; the appreciation we heard, the generations of families served, and the specific stories clients told of how our firm had helped them and their families. It’s always a moving and humbling experience to be reminded of the impact we intended and how it lines up with what others feel has been delivered.
As the Academy wraps almost two decades of serving law firms who serve clients just like ours, it’s the perfect time to reflect on what matters most.
First, it’s about relationships. For both of us, it’s with great pride that we look back on the relationships we have established with members, their families and staff over the past two decades. Our association with the extraordinarily talented firms we’ve had the privilege of serving is beyond what we ever thought possible.
Second, helping you help others. The number of clients across 44 states who’ve had the good fortune of working with an Academy member is staggering. Improving your relationships with your clients is the foundation of the services the Academy offers. The responsibility of providing legal education, comprehensive documents, one on one coaching, state of the art technology and a host of other tools so you can have the credibility you deserve in your community is daunting. We thank you for the trust, confidence and opportunity you have given us.
Finally, there’s a financial impact we see for our Members. As we wrap up the year and begin our review of the first 25 or so sets of financials that have already started to come in, it’s clear that the Academy’s tools and strategies has had a positive impact on the financial security of so many members and their staff. We are reminded regularly of the privilege we have to work with some of the brightest, most successful attorneys anywhere.
Our “why” is very simple: to transform the lives and practices of estate planning attorneys across the country, and we thank you for your commitment and passionate execution of systems and strategies that have had such a dramatic impact on your community.
As the new year launches, we hope that you’re reflecting on your “why.” It is the one thing that can always keep you centered. Be clear about what that is and share that message with your staff and your clients. Once stated clearly, the “how” and the “what” look after themselves and your vision shows up in every area of your practice.
Make this the year when everything you do rests upon the clarity of your WHY. Remember, your “why” isn’t a detailed agenda of what you will and won’t do. It is a purpose, a mission. It’s at the root of what lights you up. We encourage you to reflect on the past year. Look at the growth you’ve experienced personally and professionally. Look closely at the areas that may not have measured up to your intentions. Take a moment as the year ends to celebrate your victories and, in areas that may not have hit their potential, look again at your “why.” Often when the why isn’t defined, or it isn’t in alignment with what we’re doing, there is pain or, at the very least, a lack of satisfaction. It’s an easy adjustment to make at this time of the year as we plan out our future.
Our optimism about what lies ahead in 2013 could not be higher and the entire Academy Team looks forward to leading you into the future we are all creating. We firmly believe that our Spring Summit, where we celebrate our 20th Anniversary together, will be one of the most memorable gatherings in our history. It will be the perfect time to celebrate our relationships, our accomplishments and the achievement of our goals, but more importantly it will be a time to take aim at what’s possible. We’ll also be focusing on the importance of structures for ancillary businesses and continued emphasis on Elder Law tools. As an added bonus, we’ll have a number of sessions taught by the most popular speakers in our event history.
Finally, we want to acknowledge each of you for your commitment to continuous improvement as counselors and leaders in your communities. We are grateful and proud of our affiliation and we wish you a wonderful holiday season with health and prosperity in the New Year!
To your success in 2013,
Robert and Sandy
Robert Armstrong & Sanford M. Fisch
Co-Founders
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com
Up until now, planning for same-sex couples has been a minefield of different state and federal laws. A couple could be married under state law yet be considered legal strangers for federal purposes because of the Defense of Marriage Act. Not only does DOMA mean that a marriage in New York or Iowa need not be respected in Oklahoma or Utah, it also prohibits the federal government from extending the various benefits of marriage to same-sex married couples. These benefits include the right to file a joint tax return, the ability to give money to each other without payment of a gift tax, and social security survivor benefits, among others.
The United States Supreme Court has decided to hear two cases. Windsor examines the constitutionality of DOMA in an estate tax setting. Another case examines California’s Proposition 8, which narrowly removed the right of same-sex couples to marry in that state.
Depending on the outcome of these cases, planning for same-sex couples may become much less complicated. It is possible that there will be uniformity of marriage laws concerning same-sex couples across all states and between the state and federal governments.
But, the outcome is not certain. If DOMA is held to be unconstitutional, then same-sex spouses could equalize their estates like many opposite sex spouses do. If DOMA is upheld, same-sex couples still have the waning days of 2012 to make transfers to their partners and take advantage of the temporary $5.12 million applicable exclusion.
I will keep you updated on these cases in 2013. Decisions are expected in these cases sometime next summer.
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
Once upon a time, there was a Law Firm that wanted to grow. It was a good Law Firm, following the rules and regulations set forth by the regulatory agencies, providing quality client service and hiring only the best and brightest talent. It was a relatively young firm, but it dreamed of being recognized as one of the very best. It fantasized about becoming the leading provider of estate planning services. It envisioned multiple offices throughout the country. More than anything else, it wanted to grow.
What did the good little Law Firm do? It began telling stories, sharing educational and informative content in an engaging and interesting way. It began to highlight its services, benefits and people through storytelling. It began marketing by identifying with its target market, its prospects, its clients and its referral sources through relevant prose and attractive visuals. The Law Firm began to demonstrate its greatness through storytelling, and, little by little, began to grow. Soon, it was opening new offices, attracting better clients, expanding its service offerings and bringing in more qualified leads. The little Law Firm was very happy.
What is the moral of this brief story?
A good story can help you sell, whether your product is a gadget, an idea or a professional service. Why? As human beings, our brains process information better when it comes in the form of a story, whether auditory or visual. We are literally hard wired to react to stories more than any other form of information gathering. Cognitive and behavioral neuroscience research indicates that our brains respond to certain triggers either favorably or unfavorably. Occasionally, there is a minimal response either way, which indicates a complete lack of interest or engagement in the trigger. (If your marketing is eliciting zero response, keep reading!)
What does this have to do with marketing or selling?
Harvard University began studying the impact marketing strategies have on our brains (and therefore our reactions) back in 1990. While the term “neuromarketing” wasn’t actually coined until 2002 (by Ale Smidts), Harvard psychologists began experimenting to determine if they could effectively manipulate information to generate a specific reaction. The meme, originally coined by Richard Dawkins in The Selfish Gene, was the foundation for neuromarketing research. A meme replicates information and influences a decision maker within 2.6 seconds.
Dah Dah Dah DUM
Do you recognize that tune? The first four notes of Beethoven’s Fifth Symphony are collectively a cultural meme, just as advertising slogans such as “Where’s The Beef?” and “Just Do It” are marketing memes. Memes are used (and recycled) in marketing all the time. When Puss in Boots was launching in theaters, DreamWorks ran an ad featuring Puss that was based on the Old Spice commercial series “The Man Your Man Could Smell Like”. Classic meme (watch the Puss in Boots commercial).
Since the dawn of neuromarketing, companies such as Google, CBS and Frito-Lay have used neuromarketing research to measure consumer response to products and promotions. Apparently, we cannot make a decision solely based on facts and logic. For professional service providers, this may come as a shock. It goes against the paradigm we have held dear for years. Facts, figures, statistics and logic: those are the keys to persuasion, right? Not really.
Use stories to entertain, inform and persuade
According to neuroscientists, most of our cognitive activity (i.e., what we think) occurs on a sub-conscious level, well beyond the reach of our active awareness. Highly emotional content tends to have the most positive reaction, activating oxytocin, producing feelings of empathy and helping us bond with one another. Oxytocin ensures that we bond, rather than merely eliciting pleasure for the sake of it. Bonding has been imperative to our survival as a species and is certainly critical to marketing and selling.
“Buy this product and it will do this” and “hire us because we’re the best” won’t sufficiently engage your prospects or create that essential bond. Facts are boring. They generate zero response on a biological level. You need to use stories to draw prospects in, titillate them, educate them, inform them and persuade them.
A story can potentially carry the entire sale for you, provided it has these six characteristics of highly persuasive stories (courtesy of the Neuromarketing blog for marketing and sales):
- Impactful delivery.
- Vivid imagery
- Realism and understandability
- Structure
- Context and surroundings
- The proper audience
What story do you have to tell that will help you increase prospect engagement and boost sales? In my next post, I’ll review five types of stories that will help you sell more services.
Becca Fieler is an Online Marketing Specialist for BizActions, a Thomson Reuters Business, serving as a strategic partner in the planning and implementation of electronic communication and marketing initiatives. She develops and oversees comprehensive programs that present marketing strategies and solutions to diverse audiences, including attorneys, accountants, banks and credit unions, human resource companies and other professional service providers.
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
In a perfect world, aging parents would all get along with their adult children, and end-of-life matters would not place a strain on relationships. Unfortunately, the world is not perfect. As such, dealing with matters of estate planning and administration may not always be rosy. In some cases, it can be downright difficult, such as when a deceased person’s children feel the need to challenge that person’s estate plans.
In a recent case, the daughters of a deceased woman successfully challenged the administration of a will after their mother died. According to the facts, the mother had passed away at a time when all of her financial matters were being managed by a friend. Unfortunately, the daughters had a strained relationship with the mother and knew little about the situation. The mother, who had been battling breast cancer, received a morphine administration just prior to her death, and while the autopsy initially showed that the mother died of breast cancer, the daughters hired another doctor who concluded that the mother died of morphine poisoning.
The daughters then challenged the administration of the estate based on wrongful death. They stated that the friend had unduly influenced the mother’s estate planning decisions. After a significant proceeding, a district court jury agreed.
Even though a notary and the woman’s attorney attested to the fact that the mother was of sound mind when creating estate plans, this did not bar the jury from finding that the friend was acting in her personal interest and that the wrongful death was a matter of interference with the inheritance.
Though in this situation, the tensions were high and the relationships strained, it leads to an important understanding. Even where it may not be easy to discuss end-of-life planning due to strained relationships, it is important to communicate based on these matters in order to help avoid situations that may arise as a result of duress or other undue influence.
Families that are in limbo can seek assistance through mediation, as a mediator can help guide the families to results that satisfy all family members. In the case above, the daughters now have recovered leases to some property owned by the mother, but not any monetary damages stemming from the alleged wrongful death. To avoid such complications down the road, it is essential for children to work with aging parents to come to a thorough understanding of matters relating to estate planning – regardless of how difficult that might seem in times of tension.
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
As of this blog posting, there are 12 days left before the clock strikes midnight on December 31st and the law changes.
It’s just like watching the ball drop in New York’s Times Square:
10…9…8…7…6…5…4…3…2…1…
As of this writing, the law to which it will change will be the pre-EGTRRA/TRA law. In other words, we will have a $1 million applicable exclusion per person. Gone will be the days of the $5.12 million exclusion. Also, portability will be history. For many people, the New Year will not be very happy because of the tax changes it might bring.
It remains to be seen if Congress and President Obama can come to an early resolution on the issue before the expiration of the “Bush Tax Cuts” on January 1, 2013. It’s unclear whether the estate tax is even part of the negotiation on the “fiscal cliff.” Both sides have been very quiet in this regard.
If we go back to the old law, many things will change. Estate taxes will, once again, become more relevant to many people. However, there is one thing which I hope will not change. Clients and practitioners have refocused in the last few years, in ways I think are for the better. For the most part, their top priority has not been the tax issues. Their top priorities have been the legacy which the clients wish to leave, as well as asset protection, divorce protection, and Medicaid concerns.
I cannot help but think of the ending of the Great Gatsby: “So we beat on, boats against the current, borne back ceaselessly into the past.”
I hope that if we are borne back to prior law, clients and estate planning attorneys alike can retain the focus which they have learned. Taxes may become a more important part of the conversation after January 1st. However, I hope that we will make resolutions to remember the other priorities upon which we have come to focus in the last few years.
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
Eventually every family has to arrange the party no one wants to plan – a funeral. With relatives gathering for the holiday, it’s an opportune time to start a face-to-face conversation about each person’s ideal send-off.
However, it’s often awkward to start a funeral planning conversation. Hollywood to the rescue!
It’s easy to watch a funny film and start a serious conversation based on what you see in the movie. Here is a list of funny, family-friendly films that bring a light touch to a dark subject. These movies can help get the conversation started.
Undertaking Betty (2002 – PG-13) starring Brenda Blethyn, Alfred Molina and Christopher Walken. Stuck in a marriage that’s killing her, Betty thinks the only way to break from her two-timing scoundrel of a husband is to fake her own death. With the help of her rekindled old flame, the local undertaker, she finds a new life after a comedic funeral journey. The flamboyant competing funeral director in town creates the ultimate Star Trek funeral.
The Six Wives of Henry Lefay (2009 – PG-13) This is a comedic cautionary tale for those who don’t make funeral plans, or for those who make plans but get married way too many times. It’s especially instructive on the need to keep estate plans up-to-date. Stars include Tim Allen, Elisha Cuthbert and Andie MacDowell.
Waking Ned Devine (1998 – PG) starring Ian Bannen and David Kelly. After Ned Devine dies from the shock of winning the lottery, two longtime friends, Michael and Jackie, discover the body. They embark upon an outrageous scheme to claim the jackpot by getting all the townsfolk to go along with their plan. There’s a lovely scene that raises the idea of being present at one’s own funeral and hearing what people would say about you.
Get Low (2010 – PG-13) starring Robert Duvall, Bill Murray, and Sissy Spacek. This comedy/drama is based on the true story of a Depression-era man who threw himself a “funeral party” while he was still alive to hear what people would say about him. It shows how much detail goes into planning any kind of party, especially a funeral party.
Other comedy films to consider are Death at a Funeral (U.K. version 2007, U.S. version 2010, both rated R), Grand Theft Parsons (2003 – PG-13), and cult classic Harold and Maude (1971-PG). Most are available from Netflix or Amazon.com. You can find other funeral planning film recommendations at http://agoodgoodbye.com/funeral-films/.
Gail Rubin, The Doyenne of Death™, is author of the award-winning book, A Good Goodbye: Funeral Planning for Those Who Don’t Plan to Die and host of the new television interview series, A Good Goodbye TV. She speaks to groups using clips from funny films to illustrate funeral planning issues and help start serious conversations. Her website is www.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
It seems that anywhere and everywhere, companies require personal identification codes in order to maintain access. Everything from your personal ATM pin to your email accounts require you to create, maintain and keep a code in order to ensure access. When creating passwords, you can help protect your identity and your personal information by avoiding the following:
Birthdays as passwords: Birthday passwords are all too common, and if you are using one, all a thief needs is one glimpse at your driver’s license to have access to everything you own. Avoid using your anniversary as well.
Simple formations such as 1234 or 1111: A study showed that these two combinations were the most popular iPhone access codes. Stay away from them if you don’t want a stranger to have access to your information.
Using “password” as a password: It is quick and easy to remember, and so you’ve been using it as the access code to your computer since you first got one back in the 1980s. The problem is, so have millions of other people. Avoid it if you don’t want to be hacked.
Your street number: Using this as your password is as simple to crack as showing the thief a piece of paper with your letterhead.
Phone number: Anyone can easily figure out your code if they also have access to your phone number (which may even be posted on the Internet).
So, what should you use?
If you’re serious about the safety of your personal identity (and we hope you are!), then there are a few tried and true tips to help you create codes that James Bond himself couldn’t crack.
Childhood phone number: It’s easy for you to remember but hard for anyone else to guess.
Favorite holiday: It’s tough enough for a stranger to guess your favorite holiday, and it’s even tougher for that person to imagine you’d use it as a password.
Childhood street address: Once again, this is something that is easy for you to remember, and nearly impossible for a stranger to guess.
Also, if you keep your passwords on file in an electronic document such as an Excel spreadsheet, remember to secure those with a personal identifier. There are also programs designed for small businesses to help store all passwords. The cost for such software or apps typically ranges from $30-$40.
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
When a loved one passes away, families find themselves under tremendous physical and emotional stress as they grieve the loss, plan the funeral, and attempt to distribute the estate equitably. It is helpful when the deceased leaves a detailed and up-to-date trust, will, and other directions such as beneficiary designations on retirement plans and life insurance. However, in some cases, the most important items have little to no financial value.
As estate planning attorneys who often deal with estates worth considerable sums, we sometimes underestimate the sentimental value and significance of one’s tangible, personal property. A small dish that may appear to hold no value may also symbolically represent years of emotional support and comfort. A doll that appears to be in such bad condition that it should be tossed might also be the key to unlock memories of childhood joys and playfulness. That tattered doll might bring back the memories or those long-lost days of childhood, when they are needed most, in the midst of recent tragedy.
When you are assisting a family with their estate planning needs, it is essential to consider the smallest items, as those items may very well cause the biggest rifts. Though attorneys may objectively find it difficult to see the value in crafts stashed away in the attic, or an old box of children’s toys, we have a duty to give adequate consideration to these items and to consider what they might mean to a family that has recently experienced a loss.
As you work with families in planning their estates, it is important to ask the right questions in order to ensure the individuals’ estate plans cover such items. Prior to their passing, some parents may ask their adult children to claim things that have sentimental value to them, while others may simply direct which children get which property. The directions may be left in the will or trust. However, items such as furniture, clothing, jewelry, etc., can be included on an external list referenced in the more formal estate plan. The client can change this tangible personal property list without the more elaborate formalities required for a non-holographic will or trust. This also gets the client more involved in their estate planning.
If a sentimental item also holds significant financial value, such as a piece of valuable artwork, then families can designate the item to one child, and can reduce the child’s share of the remainder of the funds in a way that offers equivalent value to all children. Or, the parent can use the will or trust to direct the estate administrator or trustee to sell the item, and the funds can be divided among the beneficiaries. While an item of tangible personal property with significant financial value could be listed on the external list, in theory, in practice it would be better to list the item in the more formal estate planning documents.
Looking after the little things in the present can reduce the possibility of fights between loved ones in the future, after a death in the family.
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
Do your clients inform you when they have been diagnosed with an end-stage or terminal illness? Do you ask them to tell you? Even if you don’t, you might find this information useful for yourself and your loved ones.
Suppose your client learns that he/she has advanced cancer that isn’t curable. A recent study finds that your client will likely make different decisions about care if their doctor has talked with them sooner versus later about their treatment options for end-of-life care.
Specifically, the study finds that most patients make decisions for more “comfort care” and less aggressive care (like additional chemotherapy or ICU care) in their last month of life when they’ve talked with their doctor earlier, according to study author Dr. Jennifer Mack of the Dana-Farber Cancer Institute. Of course, some patients do choose more aggressive care regardless of the timing of this discussion. And that’s the point: earlier discussion can help patients get the kind of care that they actually want.
Why is it important to know this? Because oncologists are not good about initiating discussions about the patient’s wishes for care as they face the end of their life. In this study, doctors talked to patients about their wishes on average only 1 month before the patient died. Usually, this kind of conversation occurs only after all the chemotherapy options have been exhausted, according to Dr. Thomas Smith, director of palliative care for the Johns Hopkins Sidney Kimmel Comprehensive Cancer Center, Why? It’s a “hard conversation” for doctors to have, Dr. Smith explains, but avoiding it “doesn’t serve as well to prepare the patients and families for what’s coming.”
Other studies have also found that near the end of life, less aggressive care can improve a patient’s quality of life, help patients stay at home, and can in some cases even help patients live longer. And — family members are actually less likely to develop depression after the patient’s death.
So the take-away is this: if a person is diagnosed with advanced cancer or other terminal illness, it’s up to the patient and the family – whether this person is your client, your loved one, or yourself – to initiate a discussion with the doctor about all treatment options. These options include comfort care and alternatives to all-out “aggressive” treatment. The patient and family can ask, for example: “what will my life be like if I do get the chemotherapy? What will my life be like if I don’t? How long might I live? What are my options for comfort care (including pain management and/or hospice)? What are my chances of staying at home?” With this kind of information, patients and families can make treatment decisions that best matches their wishes.
Yes, it’s a travesty that many doctors don’t take the lead on this with their patients. But until medical training and medical culture change in this regard, we have to rely on ourselves and our families to do it. Don’t be bashful. Don’t feel that you’re challenging the doctor. In fact, many physicians will be relieved that you have raised it and were just waiting for a cue from you to talk about it.
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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