The relatively recent ability to provide very high-tech, expensive medical procedures to pets raises interesting questions for pet owners, veterinarians, and ethicists alike:

• Can we justify spending tens of thousands of dollars on a bone marrow transplant or chemotherapy for our dog or cat?

• Can we ethically own a pet if we are unwilling or unable to spend these sums on its care?

• Are we failing our pet if we decide not to “do everything” for it — and if the answer is “no” — can we avoid feeling guilty about it?

• What are our responsibilities to our pet vis à vis extending its life and/or preventing its suffering?

• Can we separate our own emotional desire for our pet to live longer from what may or may not be best for our pet?

A recent New York Times article highlights many of these ethical questions and also offers six opinions on the topic of end-of-life pet care. I found it thought-provoking and useful in two ways.

First, the article can be a useful resource for your clients if they are faced with a decision about caring for a seriously ill pet. It’s a series of short, accessible pieces.

Second, I found that shifting my own lens to think about medical care in the context of animals was a good exercise. Most of the questions above are the same ones we confront about high-tech treatments for ourselves and our loved ones. At some level, just the act of thinking about these questions in terms of animals forces us to compare and contrast these notions with our thoughts about human medical treatment. So while the answers to the questions above may – or may not – be different for our pets than for the humans in our lives, the thought process itself may actually help clients clarify their views about their personal health care decisions, as well. It did mine.

Randi J. Siegel, MBA, is the President of DocuBank (docubank.com), the largest advance directives 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

The social media revolution is in full swing, and it seems like everyone has joined in – from middle school kids to grandparents.

From a lawyer’s perspective, the pervasiveness of social media is great news. Facebook, LinkedIn, Twitter, and a host of other social media sites are proving to be excellent resources for professionals who want to connect with current and prospective clients. But jumping into the fray can be a little daunting at first.

One of the biggest challenges when you’re first venturing into the world of social media, particularly in your capacity as a professional, is to figure out what to talk about. Here are three tips to get you started:

1. Social Media is Not the Place for Shameless Self Promotion. This isn’t a replacement for a yellow pages ad, nor is it a virtual billboard. Social media is about interacting with people – you’re stepping into an ongoing conversation. So, talk a little about yourself. Offer useful information. And then, listen to what other people are saying and respond to them. Remember, Social Media is much like a cocktail party where people interact on topics interesting to the small group. You would never intrude in one of those gatherings with an advertisement about yourself or your firm. Provide interesting information and they will naturally gravitate to you and be interested to learn more about what you do.
2. Let People Know You Have a Life Outside the Office. You do have a life outside the office, don’t you? Good! Tell your clients a little about yourself, and let them get to know you as the well-rounded person you are. Are you an avid runner? Do you love to volunteer at your local animal shelter? Talk about it. Better still, go a step further and post pictures or video of yourself doing the things you love to do.
3. Don’t Forget to Link. If you find an interesting article from someone else’s website, post the link. Remember, the purpose of social media is to start and maintain conversations. Similarly, when you talk about your law firm, be sure to post a link to your latest blog post or to an interesting article or video on your website.

If you’ve been a little shy about mixing social media with your professional life, maybe now is the time to try these tips and join the conversation.

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

Over the past two weeks, I’ve looked at the insurance, tax, and asset protection considerations involved in transferring real estate into a trust.

This week, I’ll touch on funding issues unique to irrevocable trusts, as well as those unique to revocable trusts.

Irrevocable Trusts

Typically, there are two categories of issues to consider when deciding whether to transfer real estate into an irrevocable trust. Both stem from the fact that, under normal circumstances, the purpose of these transfers is to get the value of the property out of the grantor’s estate for estate tax purposes.

• Transfer Tax Issues: In order to get the property out of the grantor’s estate, the grantor needs to make a completed gift to the irrevocable trust. This usually means filing a gift tax return. Also, beware of the grantor retaining too much control over the disposition of the property once in the trust, such as a sprinkling power – this could cause the property to be included in the grantor’s estate. (See IRC § 2038).

• Income Tax Issues: Assuming the gift into the trust is complete and the property is not included in the grantor’s estate, there will be no step-up in the property’s basis when the grantor dies. Think carefully about the loss of this step-up in basis before deciding to transfer real estate into an irrevocable trust. This is a very fact-intensive decision. For example, if the property is a vacation home which the client intends to stay in the family for generations, the basis may make little difference. Essentially, the present value (at the decedent’s death) of the future capital gains tax should be compared with the presumed estate tax savings.

Revocable Trusts

When deciding whether to fund property into a revocable trust, you should take into account the impact of any property agreement on the transfer into the trust.

Once your clients’ real estate is funded into the trust, will it be tenancy in common property, community property, or some other form of property? If community property is available in your jurisdiction, it is typically the best option (assuming your clients are a married couple, of course).

Community property qualifies for a step-up in basis on the entire property at the death of the first spouse, not just the decedent’s half. Tenancy in common property, on the other hand, only qualifies for a step-up in basis only on the half included in the predeceasing spouse’s estate.

Believe it or not, there are still a few more issues to think about when funding real estate into a trust. Next week, I’ll have a bonus blog for you with several additional considerations of which you’ll want to be aware before deciding to make a transfer.

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

It’s appropriate this blog post is appearing on April 16, National Healthcare Decisions Day. The initiative is designed to encourage individuals to prepare and discuss their advance medical directives. Advance directives enable families to know what kind of care is desired, should a loved one become ill and not be able to communicate.

Studies indicate 73% of Americans would prefer to die at home, but up to 50% die in hospital settings. It takes courage and determination to carry out a loved one’s wishes for end-of-life care. Knowing what those wishes are and discussing them is the first step.

If a family member says he or she wants to die at home, I recommend the following books for those caring for a dying loved one. The links in the titles (in color) take you directly to the corresponding Amazon.com page.

Coming Home: A Practical and Compassionate Guide to Caring for a Dying Loved One by Deborah Duda

Coming Home provides end-of-life care guidance that helps the reader acknowledge feelings of fear and guilt, and transform them with love. It provides helpful resources and practical information on preparing the home, talking openly about dying, legal and medical considerations, and how to be with someone in their final days. The book was first published in 1981 and the fourth edition came out in 2010.

The Last Gifts: Creative Ways to Be with the Dying by Jillian Brasch, OTR

The Last Gifts shares 17 first-hand accounts by an occupational therapist in a hospice program and her work with dying patients. Jillian Brasch details ways to help family be present and comfortable and help the dying patient to meet their final goals. Written for anyone in the vicinity of a dying person, this award-winning book is practical and insightful, with a direct simplicity that makes it entertaining and easy to read.

Dying the RIGHT Way: A System of Caregiving & Planning for Families by Janice Louise Long

While the title lacks appeal, Dying the RIGHT Way provides a lot of good information. The book draws upon the author’s experiences caring for her parents during their final four years. It is a guide for keeping elders or others requiring long-term care healthy as long as possible. The caregiving information includes tips, forms, checklists, and questions to ask. It also provides guidance for funeral planning and steps toward settling an estate.

The Needs of the Dying: A Guide for Bringing Hope, Comfort, and Love to Life’s Final Chapter by David Kessler

The Needs of the Dying uses comforting and touching stories to provide information that helps meet the needs of families and a dying loved one. David Kessler, a student and coauthor with Elisabeth Kübler-Ross, identifies key areas of concern for the dying: the need to be treated as a living human being, the need for hope, expressing emotions, participating in care, the need for honesty, spirituality and to be free of physical pain.

Any of these books can foster the conversations we need to have with our families on National Healthcare Decisions Day – or any other day, for that matter.

Gail Rubin is a Certified Celebrant who brings light to a dark subject and helps get funeral planning conversations started. Her book, A Good Goodbye: Funeral Planning for Those Who Don’t Plan to Die, has won multiple awards. Learn more at www.AGoodGoodbye.com. Gail is an ongoing contributor to the Academy blog. Contact: 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

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

Today is exactly one week before National Healthcare Decisions Day (NHDD), April 16. The sole purpose of this grassroots initiative (now in its 5th year) is to encourage folks to do their own advance care planning.

I’ve blogged here previously about ways you can use NHDD to help both your firm and your community (see Do Well by Doing Good and Put April 16 On Your Marketing Calendar).

This year to honor NHDD, I recommend we all lead by example. In other words, let’s start closer to home — with ourselves, our families, and our staff.

• Complete an advance directive.
  Think you’re the only attorney in this field who doesn’t have one? Not so; you’re in surprisingly good company! But it’s time to practice what we preach. If you don’t have your advance directive yet, just do it. We all urge clients to create these documents because they’re so important, and it’s time we take our own advice!

• Make sure your immediate family all have advance directives.
  I’ve talked with two estate planning attorneys who have personally experienced the HIPAA Horror Story: when their children were hospitalized while away at college, the emergency staff refused to tell each of them anything about their child by phone without a HIPAA Release (neither “young adult” child had one). It’s a parent’s nightmare. Yet, it’s easily preventable. As an attorney, you have the document access necessary to easily protect your family. Make sure that your spouse/significant other, your grown children, and your young adult children over 18 have all signed at least a HCPOA and a HIPAA Release.

• Protect your staff.
  As you know, your clients appreciate that you got them to create their advance directives by automatically including them in your planning. Sometimes, your staff needs the same kind of push — to create the vital documents that they, too, might rather avoid thinking about. You’re in a unique position to help them protect themselves. Completing their own advance directives is also a good way for your staff to understand more about your firm’s services and to have a taste of your clients’ experience. Some firms actually strongly encourage all staff members to create their estate plans (courtesy of the firm) for this reason.

• Review existing directives.
  So you, your family, your staff – everyone – has an advance directive. Great! But it’s not enough to just have them. They need to be kept relevant. Your firm has its own schedule of review for your clients’ documents; why not for yours, as well? Consider reviewing documents for yourself, family, and staff on the same schedule as your firm’s client review cycle. Additionally, Charlie Sabatino, J.D., Director of the ABA’s Commission on Law and Aging, suggests these “5 D’s” as triggers for review of the advance directive: Death of a family member or friend; Divorce; a significant Decline in one’s condition; a new Diagnosis; and each new Decade.

• Talk to Loved Ones about Your Wishes
  I’ve blogged about this many times before: this step is just as important as writing directives. Talk about your wishes with your family once a year. NHDD (April 16) is a good time – it gives you a reason and place to begin the discussion. Thanksgiving can be an even better time, especially if most of your extended family is together. Regardless of the day you choose, let’s make sure we all talk about our wishes, and encourage others to do the same.

Randi J. Siegel, MBA, is the President of DocuBank (docubank.com), the largest advance directives 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

I’m in the process of spending three days at the Arizona Biltmore in Scottsdale. I’m at a great conference covering all manner of marketing and client retention topics wrapped in a cloak of social media touches — the conference really hits a home run.

I’m looking at how the event is run, how the company staff is organized, what they’re wearing, how they’re handling 1500 participants, including filming, recording, and processing guests through a testimonial booth and 75 vendor booths, what they’re feeding us, how the agenda is organized… It’s poetry in motion!!

Then, when I leave the conference, I walk back through this huge monster of a hotel, one I was really excited about staying at. The wait staff and other hotel personnel generally give guests the cold shoulder and seem to all share a snooty attitude, like they’re doing people a favor when they answer a question. The cleaning staff leaves the dirty glasses in the room and barely runs a vacuum at 5:00 pm. This is a completely different WOW experience!

The contrast is so stark! A privately held, successful business holding a conference versus the corporate giant. A speed boat as opposed to an aircraft carrier. Small business wins.

The president of the company holding the conference started the meeting out by saying, “We are a values based business. We surround ourselves with 225 staff people in our company who share the same values. Those who don’t share them — are asked to leave.”

Guess that’s the secret. Whether there are 700 or 225 employees, or 50 or 5, everyone needs to be singing the same song or your music just won’t work!

How’s your sheet music serving your firm? How do YOU wow? It’s fun to actually itemize the things you do that make your clients think they are your favorite!

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

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