How seriously does your law firm take social media?

ALM Legal Intelligence recently conducted an online survey with 179 lawyers and law firm administrators, querying them about their social media habits. The survey results seem to indicate that the legal industry is starting to catch on to the power of social media.

But there were two responses I found particularly interesting.

• Over half of the law firms questioned reported that blogging and other social media brought them leads on new matters. Forty-one percent said social media generated between $5,000 and $200,000 in new business.

• Almost half of the law firms surveyed said that the biggest obstacle to expanding their use of social media was “lack of time.”

What?! There seems to be some sort of disconnect here.

Social media is coming into its own as a reliable source of new business for law firms…yet almost half of firms just can’t seem to find the time to have their attorneys blog a little more, keep their Facebook pages up-to-date, or otherwise gain the online visibility they need to attract the new business that’s waiting out there?

It seems to me the firms that “don’t have the time” for social media, haven’t fully grasped its power – or the ways in which their clients are living their lives.

Consider this excerpt from a recent GigaOm article:

Today the Internet is how we do (almost) everything. Our phone calls are made using Skype. We video chat over Google Hangouts, and we communicate via Facebook, Twitter and iMessage.  

Twitter is the new Associated Press. Vimeo is our PBS, and YouTube and Hulu are the new broadcast networks. Amazon is the mall and iTunes is our Virgin Megastore. Pandora is our radio and Spotify is our jukebox.

Before long, attorneys who fail to use social media as just another way to communicate with clients and prospects are going to find themselves with limited reach and limited influence.

What do you think? Is social media a high enough priority that you make time for it? Or is it one of those things that waits until you get around to it?

Remember the old saying about three types of people: those who make it happen, those who watch it happen and those that say, “What happened?”

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

Last week, I discussed how the transfer of real estate into a trust could trigger issues regarding Homeowner’s Insurance and Title Insurance. There are many other issues to consider. This week, I’ll look at tax and asset protection considerations.

Taxes

• Capital Gains Tax: Transferring a residence to a grantor trust (like a revocable trust) does not interfere with the grantor’s $250,000 (or $500,000 for joint returns) capital gains exclusion, provided the property otherwise qualifies.

• Deductions: After property is transferred to a grantor trust, the grantor can continue to claim deductions for mortgage interest and property taxes paid by the trust.

• Property Tax: Some states offer a homestead exemption that serves to reduce property taxes for homeowners. This exemption can be very valuable. If your state offers this exemption, check to be sure that transferring a residence to a trust does not interfere with the exemption. Also, think about how property tax reassessment works in your state. Some jurisdictions don’t have periodic reassessment of property taxes—only a reassessment upon the transfer of the property. If the property has appreciated in value, make sure that transfer to the trust will not trigger property tax reassessment.

Asset Protection

• Tenancy by the Entirety. In some states, property held in “tenancy by the entirety” is given an extra level of protection from creditors. Few states will allow property to maintain its “tenancy by the entirety” status in a trust. In most states, transferring such property to a trust destroys the tenancy by the entirety protection. Prior to transferring tenancy by the entirety property to a trust, consider:

1. Your state’s rules for allowing a trust to hold property in tenancy by the entirety, and

2. Whether any loss of asset protection is worth the advantages offered by funding the property into the trust.

• Bankruptcy. Debtors’ homes are given preferential treatment under bankruptcy law. This is called the “debtor’s homestead exemption.” This exemption varies from state to state. For example, a Florida resident can protect his or her home – no matter the value – from creditors in bankruptcy. In other states the exemption may be limited to $100,000 or less. In some states, however, transferring a home to a trust means losing the homestead exemption in bankruptcy. If bankruptcy is a possibility, it is imperative to know your state’s bankruptcy law before deciding whether to fund the home into a trust.

Amazingly, there are still more issues to look at! Next week, we’ll look at a number of additional concerns you’ll want to be aware of before you transfer real estate to a trust.

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

We spend a lot of time stressing to our clients the importance of properly funding their trusts. But, which assets belong in a trust and which are best left titled in the client’s name?

When it comes to real estate, this can be a tricky decision. Funding real estate into a trust can lead to a number of issues and potential problems. Helping a client make the right decision means looking at a transfer from all angles before drafting a deed.

In this post, I’ll take a look at common insurance concerns you’ll want to be aware of. Next week, I’ll take a look at tax and asset protection concerns. In the third week, I’ll provide a brief overview of some additional issues to consider prior to transferring real estate into a trust.

• Homeowners’ Insurance. This is one of those details you don’t want to overlook when funding real estate into a trust: the homeowner’s insurance company will need to be notified that the property has changed hands. If the property serves as the grantor’s residence, or the residence of a beneficiary, that person should be named as an “additional insured.” Typically, there is no change in the premium as a result of this change.

• Title Insurance. Check with the title insurance company before making the transfer. Many title insurance companies now include provisions in their policies that extend title insurance coverage to transfers to revocable trusts. If this coverage is not available in your situation, you’ll want to take one of three steps to avoid leaving the property without title insurance:

1. Buy a new policy

2. Buy an “additional insured” endorsement to the original policy.

3. Use a warranty deed, rather than a quitclaim deed, to transfer title to the property. When you use a quitclaim deed to transfer  property to a trust, the deed merely serves to transfer whatever interest the grantor had in the property – if any. With a warranty deed, however, the recipient gets extra protection. The grantor warrants that he or she has clear title to the property. Therefore, if there is a problem with the title, the trustee of the trust could make a claim against the transferor, i.e., the grantor of the trust. If the grantor’s title insurance covers the claim, the coverage should not be denied because of the transfer to the trust.

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

The way you look in the mailbox will tell a lot about you, your firm and the services you provide. That is the very first impression that you make with your targeted audience. What do you want them to think or perceive? I see financial professionals with expensive business clothes, nice cars, nice homes, nice offices, nice presentation materials and yet, their marketing looks CHEAP!

Other than a referral, direct mail is still the most personal, emotional and accepted medium to make a connection with people. Remember, you are marketing solutions – not products. That means the first impression you give in your direct marketing needs to immediately start generating a feeling of TRUST, CREDIBILITY, and REPUTATION. So it makes you wonder why some professionals send out flimsy flyers or cheap postcards to promote themselves. Why? Top performing professionals understand how important their image – or brand – is when they are asking prospects to take time out of their busy schedule to discuss the most intimate details of their estate.

So, before you send out your next marketing piece, take a critical look at it and ask yourself, “Is THIS the impression I want to give to a potential client?” If the answer is NO or NOT SURE, feel free to ask us for some samples that may spur some ideas for you!

Jorge Villar is President of Response Mail Express (RME), with more than 26 years of direct marketing experience, he is known in several industries for his ability to create mail packages that garner the highest response rates. He is responsible for the Seminar Success program that, for the last 17 years has accounted for more than 65% of the social educational events being held in the nation with over 12 million individuals making reservations. Mr. Villar has also been very successful marketing to physicians and business owners regarding Marketing Success Planning and Lead Generation. Response Mail Express is a $25 million marketing powerhouse, housing over 133 employees in their state-of-the-art facilities located in Tampa, Florida. Their marketing ideas have been utilized by over 10,000 clients, including: top producing advisors, estate planning attorneys, large financial organizations, health care organizations, franchise operations and several other industries. Mr. Villar is a frequent speaker nationwide at financial symposiums and training conferences.

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 vast majority of us – even we estate planning attorneys, who spend our working lives helping people plan and prepare for death – live like we’re invincible. We get distracted by all the little details of life, and it’s hard to stay focused on the things that really matter.

That’s why, every once in a while, it’s good to have a reminder of what’s really important. This week, my reminder came when a friend e-mailed me a link to an article entitled Top Five Regrets of the Dying. The article profiles a book written by Bronnie Ware, a former palliative care nurse.

In her book, Top Five Regrets of the Dying: A Life Transformed by the Dearly Departing, Ware talks about the observations she made as she worked with people in the final weeks of their lives. She says that when her patients talked about their regrets, a number of common themes surfaced again and again:

1. I wish I’d had the courage to live a life true to myself, not the life others expected of me.
2. I wish I hadn’t worked so hard.
3. I wish I’d had the courage to express my feelings.
4. I wish I had stayed in touch with my friends.
5. I wish that I had let myself be happier.

The entire article is well worth reading for the additional insights it gives into each of these common regrets.

If you were on your deathbed right now, what would your regrets be? What changes can you make today to ensure that when the time comes, you’re not left wishing for  a second chance to do all the truly important things you neglected?

Robert Armstrong
President and 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

Great news for Academy members!

The Academy has partnered with LawInfo.com, a website dedicated to providing the public with access to quality free legal information and if necessary, qualified representation. LawInfo’s compliment of legal websites receive over one million page views per month.

Even more significantly, LawInfo maintains a directory of pre-qualified, Lead Counsel Rated attorneys practicing in a variety of areas of the law. As of March 21, Academy attorneys are included in this directory, making it even easier for prospective clients to find you.

Visitors who come to LawInfo.com and perform an estate planning attorney search in your area will find your listing prominently displayed in LawInfo’s “Featured Listings.” Your listing includes your name as well as your firm’s profile and contact information – including a link to your website.

In addition, because of the Academy’s background check and your 36-hour CLE requirement, you’ll be listed as a “Lead Counsel Rated” attorney, which means prospective clients will be assured of your:

• Experience and practice area qualifications
• Good standing and spotless record
• Position of respect among your peers
• Continuing adherence to LawInfo’s – and the Academy’s – rigorous standards

If you’re not familiar with LawInfo, head over and check out their website.

And let us know if you start to see an influx of calls from LawInfo.com users. We hope this strategic partnership will prove to be a valuable marketing asset for you!

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

You probably have one or two friends that count “boomerang children” as members of their households. You might even have a boomerang child living with you. And you almost certainly have clients with boomerang children.

If you’re not sure what I’m talking about, “boomerang child” is the nickname for a young adult who has moved out, lived independently for a while, and then returned to live with his or her parents.

So many young adults have begun following this pattern that last December, the Pew Research Center conducted a survey, uncovering some interesting statistics about the “boomerang generation.”

According to the survey:

• 29% of parents of adult children report that one of their children has moved back in with them in recent years because of economic conditions.

• Regardless of whether they live with their parents, 63% of 18- to 34-year-olds say they know someone who has moved back home in the past few years.

• Parental income doesn’t seem to matter. Parents with an annual income of more than $100,000 and parents with an annual income of less than $30,000 are equally likely to have an adult child return home.

• Families don’t necessarily see the phenomenon as a bad thing. Parents of boomerang children report that they are “just as satisfied with their family life and housing situation” as are those parents whose adult children continue to live independently.

From a purely financial perspective, having a boomerang child may be a plus, especially as parents age.

If the child pays rent (which, according to the survey, 48% report that they have done), that money would be treated as income to the parents. But, what if the child helps out with household expenses, by splitting the cost of household utilities and groceries? The contributions could help defer the parents’ costs, without being treated as income. Interestingly, 89% of those responding to the survey reported that they helped out with household expenses, rather than paying rent.

From an estate planning perspective, it’s important to keep a pulse on your clients’ family dynamics. For instance, if there are likely to be boomerang children in the picture, you’ll want to make sure your clients’ documents specify that the trustee can allow those children to continue to reside in the family home, even though they aren’t minors or “dependents.”

How many of your clients have boomerang children? What planning issues have you run into as a result?

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

As all of you are, I’m on Facebook as well. A friend I grew up with lost her 17 year old daughter in a car accident 6 years ago. She has a “In Memory Of” Facebook page for friends and family to post photos or thoughts to. The past couple of years, only she posts. Recently the post read:

“I lost your pen Sunday. It was horrible. I have carried it with me every day since they handed it to me at the police station. I looked and looked. It was like losing a bit of you all over again. The next day, between the washer and the dryer, I found it. It just never ends. I miss you all the time. Mom”

I am not an estate planning attorney like most of our subscribers, I have consulted with hundreds of you over the past 20 years or so, and one thing that I have just never quite gained a clear understanding on is this: I have no idea how you master the art of sitting across the table from a grieving client and doing all the things they need for you to do as a professional without losing your empathy.

Looking at the huge number of responsibilities that estate planning attorneys running a law practice have to be an expert on—this seems to me like one of the most difficult parts. Is that true? Do you have words of wisdom you could share with others on the subject of being comforting, listening fully, having professional “distance” enough to get the job done without getting lost in the process?

Jennifer Price
Director, 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

Facebook and other social networking sites are becoming an indispensible part of modern life. As the world shrinks and family members, friends, and business associates find themselves scattered around the country – or the globe – sites like Facebook, LinkedIn, and Twitter are quickly becoming a communication method of choice.

Even attorneys who have yet to jump on the social media bandwagon have growing numbers of clients who are already on board, and it’s no surprise. These social networks allow users to find and communicate quickly with a massive network of friends and associates. They let people build business networks without leaving the office, and share photos, video, and personal updates with family and friends.

But what happens to a client’s Facebook or Twitter account – or their email account, for that matter – when they die? These accounts fall into the category of digital assets, and unless a client has made express plans for these accounts, they can be left in limbo.

Access to a client’s social media accounts is subject to the Terms of Service (TOS) agreement of the sites in question, and many TOS agreements do not allow a decedent’s personal representative to gain access to an account automatically. So if no one but your client knows the relevant usernames and passwords, there’s no way for their survivors to access these accounts for purposes of terminating them – or carrying out whatever wishes the client may have for them.

• Facebook and other social networking accounts
• Blogging accounts
• Messaging (SMS) accounts
• Email accounts

Under the Nebraska bill, the personal representative would have the authority to take control of the decedent’s accounts and either continue or terminate them, unless the decedent’s estate plan provided otherwise.

As things stand now, Facebook has created “memorialized” profiles for its deceased members, changing the privacy settings of accounts when it receives notification that a member has died. Once an account has been memorialized, family members and friends can continue to leave posts, but the member’s contact information is removed and only confirmed friends can see the profile.

That’s not the same thing as removing an account, and not much comfort for those who are left without access to their loved ones’ e-mail accounts, blogs, and other important digital assets.

So, what should you be doing for your clients now, as we wait for the law to catch up with technology? You can help them understand how important their digital assets are, and help them incorporate those assets into their estate plans. In my next blog, I’ll give you some simple tips for how to help your clients start thinking about estate planning for digital assets.

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