Lawyers With Purpose

It's All About Family

I had lots of laughs once again when I got together with my family to celebrate Palm Sunday. As the youngest of ten children in a 100 percent Italian family I can always count on an exciting get together. It was a day to enjoy family; brothers, sisters, nieces and nephews and the blessing of still having my mom and dad with us (currently 88 and 87). It's amazing how quickly the time goes by when you're having fun.

Many people ask why I have my family over on Palm Sunday instead of Easter and it's quite simple. Twenty-two years ago when I got married, my wife and I agreed we would have Easter with her family, Thanksgiving with mine, and we split Christmas Eve and Christmas Day. That model has worked wonderfully for the last 22 years but more importantly, has allowed my children to grow up with both sides of our family and get to appreciate the rich traditions from each. As we celebrated Palm Sunday it gave us time to reflect on the many blessings we have in our life and on the sacrifices that others have made for us along the way.

The biggest conversation was centered on the “Casatelle” (Italian Easter bread) I made for us to enjoy. I followed the recipe and my siblings were raving about how good it was because it was so moist. My mother on the other hand was clear to point out, “This is a little too moist, you didn’t make it quite right.” The joy of growing up Italian! Below is the recipe. Make it yourself and let me know what you think:

Casatelle:

1 1/2 cup sugar
9 oz lard (or unsalted shortening)
4 1/2 to 5 cups flour
1/2 tsp salt
1 cup warm milk
1 wet yeast cake 2 oz
2 tsp vanilla
10 medium eggs

Add everything into a large bowl and mix until hands are somewhat cleaned of dough mix. Set aside. Cover with dish and blanket and put in a warm place (no drafts) until doubled in size (be sure to use large bowl to begin).

Roll when ready into greased pie plates (about 5-9 inch pans). Roll into log type pieces so as to be able to put around inside of individual pans. Cover the individual pans and let rise again (maybe 1/2 hour or so). When raised put in oven at 350 degrees for about 20 minutes. If needed lower to 325 degrees and cook 5-10 minutes or until highly browned.

Be careful not to open oven first 15 minutes (could sink).

Too many eggs will make dough too soft. Also, don't double recipe since this raises too much. May insert pre-cooked hard-boiled egg before baking for "Easter" look.

Having family is a blessing and appreciating sacrifices others have made is absolutely essential in us having the necessary gratitude for true success. So as we approach this Easter weekend I encourage you to enjoy your family and reflect on your faith, if appropriate, or others that have made sacrifices for you along the way and celebrate the greatest thing of all the love of family whatever family is to you.

David J. Zumpano, founder of Lawyers With Purpose

Special Needs Trusts In The Context of Divorce

Many divorce attorneys are clueless about the impact on a client’s SSI and Medicaid eligibility of a marital property settlement, spousal support payments or child support payments. The incidence of divorce in families where a spouse or child has a disabling condition is almost twice that of families without such disabilities. Thus, it is imperative that we reach out to our Family Law brethren to advise them of Special Needs Trust planning in the context of divorce – well in advance of the negotiations that will yield the divorce settlement.

For purposes of SSI and Medicaid eligibility, direct receipt by the person with a disability of the following items constitutes “unearned income” which will reduce his SSI payment:

(i) non-exempt marital assets set aside as part of a property division;
(ii) spousal alimony or support payment in cash;
(iii) child support payments in cash.

In general, unearned income reduces the recipient’s SSI payment dollar for dollar after the first $20. In the case of a minor child, cash support payments by an “absent parent” (i.e. one not living in the same household as the minor child) are subject to a special rule: one-third of such payments are excluded from the calculation of the child’s unearned income. Similarly, one-third of any non-cash child support for a minor child’s food or shelter provided by an absent parent will be disregarded for purposes of calculating the child’s unearned income. The other two-thirds will still count as “In-Kind Support and Maintenance” (“ISM”) subject to the “Presumed Maximum Valuation Rule” (“PMV”), i.e. a reduction in the child’s SSI payment of no more than one-third of the maximum federal SSI benefit (in 2013, $234, which is one-third of $710). Child support payments for an adult child do not qualify for the one-third disregard available for child support for a minor child, regardless of whether the parent payor lives with that adult child.

Use of a first-party SNT can mitigate the adverse impact on the SSI benefits of a client who is entitled to receive Court-ordered spousal support or child support. There is no SSA restriction on the assignability of such payments. See POMS SI 01120.201J.1.c and 01120.201G.1.d. However, such payments must be irrevocably assigned and paid to the first-party SNT, preferably pursuant to the express terms of the court order dissolving the marriage and reciting the award of support. Furthermore, the court order should ideally direct and require the establishment of the first-party SNT to which the support payments are irrevocably assigned.

While the payment of the support to the SNT must be irrevocable, the court order should not preclude a future modification of the amount or timing of the payments (unless that is a negotiated element of the parties’ settlement). The usual statutory rules regarding the establishment of a first-party SNT will still apply, as set forth in 42 U.S.C. Section 1396p(d)(4)(A) and numerous POMS provisions interpreting same, including limitations on the identity of the Settlor and the age of the SNT beneficiary at the time the SNT is established and funded. If the SNT beneficiary is a minor or an incapacitated adult, a conservator may need to be appointed as a procedural first step in the process of establishing and funding the first-party SNT with the stream of support payments and any non-exempt assets set aside for the beneficiary as part of the settlement.

While a first-party SNT must be used as the receptacle for any court-ordered support payments or non-exempt assets awarded as a property settlement, a third-party SNT may also play a role in securing the future of a divorced client (or a child of the dissolved marriage). If the parties agree on “voluntary” payments by one of the ex-spouses for the benefit of a former spouse or a child of the marriage, a third-party SNT can be the receptacle. Such voluntary payments should be completely separate and apart from any court-ordered payments irrevocably assigned and paid to a first-party SNT. Caution is advised, however, in relying too heavily on this approach. Since the payments are purely voluntary, there is no legal remedy if the payor decides to discontinue such payments to the detriment of the SNT beneficiary.

Kristen M. Lewis, Esq., Member of the Special Needs Alliance and Fellow of the American Academy of Trust and Estate Counsel.

VA's Conduct Regarding Due Process Rights Is Declared Unlawful by Federal Circuit Court

Veterans must wait an extraordinary amount of time to obtain a decision on an application for disability benefits. Quite often the decision is a denial. The veteran then has the option to appeal the denial to the office of origin, Veterans Affairs Regional Office (VARO), which is exactly where the application was filed and denied. After the VARO confirms its own denial, the veteran may then appeal to the Board of Veterans Appeals (BVA) (also an appellate level within the confines of the VA – administrative law judges who work for and are paid for by the VA).

Veterans are afforded due process rights as part of the application and appeals processes. However, on August 23, 2011, the VA promulgated a new regulation exempting the BVA from certain due process procedures outlined in 38 C.F.R. § 3.103, which govern claimant hearings before the VA.  Moreover, the VA dispensed with the legally required formal public comment period, making the new rule effective immediately. The National Organization of Veteran Advocates (NOVA) opposed the VA’s denial of due process rights at BVA hearings and filed a Petition for Review in the Court of Appeals for the Federal Circuit.

On March 21, 2013, the Federal Circuit Court found the VA’s actions unlawful and threatens sanctions as a result of VA’s conduct. The Court is requiring the VA to show cause why sanctions should not be imposed on the responsible officials, recognizing that “sanctions may be needed to motivate VA in the future to treat its commitments and representations to this court and opposing counsel with the seriousness to which they are entitled.”

This decision by the Court is a huge victory for veterans. Lawyers with Purpose, LLP, specifically thanks the advocates of NOVA for their unyielding efforts on behalf of veterans. To read the complete Order of the Court, go to: http://www.cafc.uscourts.gov/images/stories/opinions-orders/11-7191.Order.3-18-2013.1.PDF.

Victoria L. Collier, Certified Elder Law Attorney, Fellow of the National Academy of Elder Law Attorneys, Co-Founder, Lawyers with Purpose, LLC, and author of 47 Secret Veterans’ Benefits for Seniors…Benefits You Have Earned but Don’t Know About.

Removing Fear From Delegation

Working with many lawyers in their journey to become more entrepreneurial, to create a practice that is less dependent on them, there is an overwhelming theme, the fear of delegation. Many of us are afraid to delegate to others, those things we do well. I realize the lack of delegation really comes down to two core deficiencies. First, lack of trust in the people that work with us OR lack of systems to ensure that the work will be done properly and nothing will be inadvertently omitted.

As we look at the first issue, trusting the people that work with us, the question is whose challenge is it, theirs or ours? More specifically is that they don’t have the skill to do the work or is it that they haven’t been trained properly on how to do it. If it’s lack of skill, the solution is easy, terminate and move on to the next one, if it’s lack of training, the challenge is a little greater because now you are usually the only one that can do the training, and who has time for that? You must find the time because it never ends. If we don’t train others properly, then we must assume responsibility for the rest of the time that we will need to commit to do the work. Isn’t it worth a little up-front effort to train a person, with the necessary skills, that you trust? As my dad always said, “An ounce of prevention is worth a pound of cure”.

As we look at the second challenge, proper system structure is a critical piece to confidently delegating. Even if you have trained skilled employees to delegate your duties, you are still at risk that something might be dropped, forgotten, or failed to be completed. That’s where a good system, tracking each core need that you serve, and the fulfillment of it, are absolutely essential. While this appears to be daunting, in reality, you’re doing it anyway. Restated, the things you need to delegate need to be communicated to the delegatee anyway. It’s just the method in which you delegate it that must change.

For example instead of it being verbal, it must be in your contact management system to ensure there’s a record of it. Once it’s in your contact management system the information can be reviewed upon your need, by generating the appropriate report. Secondarily, once delegated the person delegated to, has to do that which was asked. Again, nothing changes, other than when they do it, it needs to be entered into your contact management system to track that it was done. Once everything is entered into your contact management system then you can retract that information any time you need to identify what is pending and what has been completed.

It sounds daunting, but if you don’t start, you never finish. Even better, we have already built the systems, processes, tracking, and training so you don’t have to.

Dave J. Zumpano

It ' s About Progress, Not Perfection

It's Tax Season ... Here's a Lesson On SNT's And Deductible Medical Expenses

While I was away at the Annual Meeting of the American College of Trust & Estate Counsel (“ACTEC”) in Maui (tough duty, I know!), we have switched over to Daylight Savings Time and inched ever-closer to April 15, the date on which many of our clients will wait to file their federal and state income tax returns.

With income tax season upon us, you may receive inquiries from your clients regarding the deductibility of expenses incurred for the benefit of a person with special needs. Many such expenses may constitute deductible “medical expenses” under I.R.C. Section 213(d)(1)(A) (and the regulations thereunder) if they relate to the “diagnosis, cure, mitigation, treatment or prevention of disease,” or the costs of treatments “affecting any structure or function of the body.” This definition would include the following:

(1) Premiums for health and medical insurance, amounts paid for qualified long-term care services, and limited amounts paid for a qualified long-term care insurance contract.

(2) Prescribed medicine and drugs.

(3) The costs of transportation to obtain medical care, and the travel costs of a companion for a person who cannot travel alone.

(4) The cost of rendering a vehicle wheelchair accessible.

(5) Medically necessary caregiver services, even if not rendered by a licensed medical professional, as long as the services are of a type generally performed by a nurse.

(6) Certain long-term care services for the “chronically ill,” as defined in IRC § 7702B(c)(2). Payments to family members for long-term care services are not deductible unless the person is a “licensed professional with respect to such service.”

(7) Meals and lodging for a caregiver rendering nursing or long-term care services.

(8) The cost of care in an assisted living facility, nursing home or other institution (including meals and lodging), if the principal reason for the placement is to obtain medical care.

(9) The entire cost of a skilled nursing home facility.

(10) The costs of living in a transitional group residence pursuant to the recommendation of a psychiatrist.

(11) The costs of a special education school that trains a child to overcome learning disabilities, including tuition, meals and lodging, if recommended by a doctor and if the principal reason for attending the school is to overcome the child’s learning disabilities.

(12) Doctor recommended tutoring by a teacher who is specially trained and qualified to work with children who have learning disabilities caused by mental or physical impairments.

(13) Admission and travel to medical conferences that address the illness or condition of the patient.

(14) The costs of maintaining medically necessary special equipment.

(15) The cost of special equipment installed in a home, or improvements made for medical purposes (deductible only to the extent that the reasonable cost exceeds the increased value of the property, if any, that results from the improvement), including entrance and exit ramps; widening doorways; installing railings or support bars; installing lifts; modifying stairways; grading the property to provide ready wheelchair access to the residence.

If a first-party Special Needs Trust is a “grantor trust” with respect to the beneficiary (usually under I.R.C. Section 677(a)(1) and (2), or sometimes one of the other grantor trust “strings,” e.g. I.R.C. Sections 674 or 675(4)(C)) and the Trustee uses SNT assets to pay the beneficiary’s medical expenses, then the taxable income reportable by the beneficiary on his personal income tax return may be offset by those SNT-funded medical expenses if they exceed 7.5% of the beneficiary’s Adjusted Gross Income (10% of AGI for 2013 and subsequent tax years).

In contrast, if the Trustee of a non-grantor SNT (i.e. most inter vivos third-party SNTs) makes such disbursements for the beneficiary’s medical expenses, the SNT may not deduct them as medical expenses. However, the SNT may be entitled to a distribution deduction under I.R.C. Sections 651 and 661 (and a corresponding amount would constitute income to the beneficiary reportable on his individual income tax return).

For more examples of deductible medical expenses, consult IRS Publication 502, “Medical and Dental Expenses” - available at www.IRS.gov/pub/irs-pdf/p502.pdf

Kristen M. Lewis, Esq., Member of the Special Needs Alliance and Fellow of the American Academy of Trust and Estate Counsel.

It's Not The Smartest People That Are The Most Successful.

I recently attended a leadership workshop that spoke of Emotional Intelligence (EQ). The day started with a conversation on how Emotional Intelligence helps you build stronger relationships, succeed at work, and achieve your goals.

Emotional intelligence is the ability to identify, use, understand and manage emotions in positive ways to relieve (not eliminate) stress, communicate effectively, empathize with others, overcome challenges and refract conflict.

Emotional intelligence impacts the way we behave and the way we interact with others. Emotional intelligence consists of four attributes:

Self-awareness – Recognize your own emotions and how they affect your thoughts and behavior while knowing your strengths and weaknesses.

Self-management – Controlling rash behaviors, managing your emotions in healthy ways, follow through on commitments, and adapt to changing circumstances.

Social awareness – Understanding the emotions, needs, and concerns of other people, staying present to pick up on emotional cues while recognizing the power dynamics in a group.

Relationship management – Develop and maintain virtuous relationships, communicate clearly, inspire others, work well in a team, and manage conflict.

As we know, it’s not the smartest people that are the most successful. We all know folks whom are academically brilliant and yet are socially inept and unsuccessful at work or in their personal relationships. Intellectual intelligence or IQ isn’t enough on its own to be successful in life. IQ can help you get into college but it’s EQ that will help you manage the stress and emotions of sitting your final exams.

In order to permanently change behavior in ways that stand up under pressure, you need to learn how to take advantage of the powerful emotional parts of the brain that remain active and accessible even in times of stress. This means that you can’t just “study” or read about emotional intelligence to “get” it. You have to experience and practice the skills in your everyday life.

Develop your stress busting skills by working through the following three steps:

Realize when you’re stressed – The first step to reducing stress is recognizing what stress feels like. How does your body feel when you’re stressed? Are your muscles or stomach tight or sore? Are your hands clenched? Is your breath shallow? Being aware of your physical response to stress will help regulate tension when it occurs.

Find your stress response – Everyone reacts differently to stress. If you tend to become angry or agitated under stress, you will respond best to stress relief activities that quiet you down. If you tend to become depressed or withdrawn, you will respond best to stress relief activities that are stimulating. If you tend to freeze—speeding up in some ways while slowing down in others—you need stress relief activities that provide both comfort and stimulation.

Find stress-busting tools that work for you – The best way to reduce stress quickly is by engaging your senses: sight, sound and touch for example. Each person responds differently to sensory input, so find things that are soothing and/or energizing to you. If you’re a visual person you can relieve stress by quickly viewing a powerful quote or photo you have hanging in your office. If auditory, music, or the sound of a motivational speaker helps to quickly reduce your stress levels.

High levels of stress will get in the way of your ability to accurately “read” a situation, hear what someone else is saying, be aware of your own feelings and needs, and communicate clearly i.e., impact cash flow, team and referrals coming into the office. It’s vital to learn how to quickly calm yourself and diffuse stressful situations to stay focused, and in control–no matter what challenges you face or how stressful a situation becomes.

Because let’s face it, in the world of a solo-prenuer, stress free is not an option. Stress is inevitable, it is all in how you manage and react to it.

Molly L. Hall, Co-Founder, Lawyers with Purpose, LLC, and author of Don’t Be a Yes Chick: How to Stop Babysitting Your Boss, Transform Your Job and Work with a Dream Team Without Losing Your Sanity or Your Spirit in the Process.

How To Get Butts In Seats ... Consistently!

Join us for our Member Webinar Hosted by Dave Zumpano TODAY - March 18th at 3:00 EST and find out:

- When and How to Advertise Your Workshop
- Where and When to Place Your Advertisements
- How to Get Your Phone to Ring
- Creating a Message Your Market Will Hear
- How to use the RMS System to Fill Your Workshop
- Creating a Call to Action to Your Workshop During the Initial Call

To participate in this marketing conversation contact Marci Otts at [email protected]. We look forward to it!

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You Have To Work Your Plan

We are getting ready to close the books on 1Q 2013. So, looking into 2Q (that is less than 3 weeks away), where are you with your 2013 Marketing Plan?

If you aren't looking at your marketing plan and reviewing it weekly, your not developing your marketing. You need to work your strategies and review your written plan weekly to make sure everyone in your firm understands, with complete certainty, the direction of the company.

Your marketing plan should be a comprehensive and researched document which covers all essential aspects of taking your firm to the next level. When you created your plan, did you ask yourself the following questions:

- Where are we right now?
- Where do we want to be in a year?
- What opportunities exist?
- How will we get there?
- Who will do what and by when?
- How will we know we've arrived?

The next and very crucial step is to develop and work your plan! Don't just set all that brainstorming and creativity to ROI aside. Work it!

Your marketing plan is a living document for the marketing department and something they need to monitor REGULARLY. You have to monitor the progress of your plan and review it for it to work!

Review it weekly, prioritize the action steps, set clear deadlines and clear exceptions for success!

Roslyn Drotar - Implementation Coach, Lawyers With Purpose

Why I Hate Meetings

I remember a time when every time I suggested we have a meeting, bodies would cringe. In retrospect I don't blame them. Most meetings are wholly ineffective. But when you examine the purpose of meetings and the distinction between a great meeting and a frustrating meeting, it quickly becomes apparent how important they are, but more importantly how to make every meeting a powerful one.

Most people become frustrated with meetings because they tend to be a “bitch” session, an opportunity for people to share what's not working. Often meetings lack structure or intended results prior to the meeting. Instead they're meant as a session to “figure it out”. While on occasion these meetings may be necessary, they are not productive and often lead to frustration.

There are two types of powerful meetings. (1) The first is check-in meetings; that is, meetings on a regular basis (once a week in our office) where you check in with everyone else to see how the firm or individuals are doing as compared to the goals and standards that have been set. This type of meeting is to ensure accountability is essential for long-term personal and firm success. (2) The second powerful meeting is a discovery meeting. In a discovery meeting you bring different perspectives together from key individuals that you think are important in making a critical decision. The significance of making these meetings successful is that you must have a controlled agenda as to time and parameters around each part of the meeting that provide for:

1) brain dump time; a time where all can shoot out ideas without judgment!
2) refinement time; when all of the issues raised are refined to identify the most important and relevant ones, and then
3) strategic time; when the participants strategize a solution to the core objective for the meeting that was potentially not even conceived prior to the beginning of the meeting.

Check-in meetings and discovery meetings, when managed and facilitated properly, can be very empowering and lead to major breakthroughs in firm operations and individual growth.

So the next time you have a meeting don't cringe, make it a powerful one.

Dave Zumpano, Estate Planning Attorney, Just Like You!