Lawyers With Purpose

Building Profitable Referral Relationships: With Whom Should You Meet?

Simply put, you want to meet with professionals that service your market in a different way than you do and whose clients (or patients) can benefit from your services.

So where do you find these professionals? Your sources can be broken down into four categories: institutions such as hospitals and hospices; wholesalers like brokerage houses, insurance companies, and banks; agencies such as nursing homes, RCILs, and ARCs; and advisors, including financial advisors, insurance representatives, accountants, and tax preparers.

It can be helpful to think of these four categories as a funnel, with institutions and wholesalers at the top, agencies and advisors in the middle of the funnel, and their clients (or patients) at the bottom of the funnel, ready to flow into your firm as prospective clients.

Now that we know the institutions, wholesalers, agencies, and advisors with whom you want to meet, let’s look at how to get started on the right foot with them and how to clearly understand your value proposition. We’ll cover that next time.

Operation Maintenance Program

 

By Amanda "Mandy" Bossow, LWP Implementation Specialist

With 2020 on the horizon, now is a wonderful time to roll out a Maintenance Program! A Maintenance Program helps you meet your revenue goals, foster lifelong clients, and focus on the proactive approach versus a reactive one.

A Maintenance Program can help kick-start the year by having the fee due annually in January. A number of member firms send out the invoices in December and see the funds start rolling in during the month of January and into February. Sometimes the winter months can be slower, especially in snowy regions. A Maintenance Program can supplement those times when things are a little slower until business picks back up. It’s also a nice reminder for our clients to check in with us to make any changes to their plan that happened throughout the prior year.

Some member firms have also found dividing their Maintenance Program billing into 2 separate invoice periods is beneficial. If they see a slow down during the winter months and then again in the middle of the summer, sending out invoices to client’s whose last name starts with A-M during December to be paid in January and then client’s N-Z during May to be paid in June helps even out that cash flow crisis.

Finally, other member firms like having a “Planniversary” where their clients are billed annually on the anniversary of when they signed their plan. This means you can count on additional revenue monthly rather than once or twice a year.

Whatever billing option you choose, the ultimate goal is to ensure your client’s plans stay as up-to-date and current as possible. You want to remind your clients you have welcomed them into your firm family as much as they have invited you into their personal family. Family takes care of family!

When you reach out to your clients with a maintenance program invoice, a letter should be included letting them know of any changes with the law and the importance of visiting you to get their plan updated. This letter also serves as a nice reminder to your clients that unless they keep you informed of changes in their lives, you can’t take care of them like you originally promised.

Some members worry about all the “benefits” the engagement agreement includes, such as client events, newsletters, special workshops, etc. If you don’t think you can commit to all those things, don’t! Remove from your engagement agreement the parts you aren’t willing and able to fulfill and only include those you know you can. This way you aren’t overpromising and underdelivering. As you grow your firm and your program, you can add in more benefits (while increasing the fee as necessary) to provide added value!

You also want to be more proactive rather than reactive when it comes to your clients. A reactive approach causes more fires and stress within the firm as well as with your clients. If they are feeling pressure to get updates done, you are also going to feel that pressure. By utilizing a Maintenance Program, your clients will feel confident their plan is always up-to-date and those fires happen less and less. They see the value in knowing this safety net is in place and can be acted upon as necessary.

Don’t worry about how to announce your new program to your past clients right away. You and your team need to create the standards for your program such as when you conduct invoicing, the cost to the client, and with what plans to include it, as well as the benefits. You and your team can start offering the program to all new clients with whom you meet as soon as those details are ironed out! You can then plan a kick-off event where you invite all past clients to attend and sign up!

When reviewing your goals for 2020, make sure rolling out a maintenance program is at the top of the list!

VA New Rule Highlights

This is the fourth of a four part series on how to represent a claimant before the VA.  This article has been updated since it was originally posted on December 23, 2019.

By Matthew Donald, Esq. Director of VA Services

 

Well the sky didn’t fall but the VA did implement quite a few changes with the rule change in October 2018. It’s just now that we are starting to see the results of the rule changes and how the VA is treating topics changed by the new rule. For example, in every case I have read, anything short of a completed gift trust is being treated as an available resource. Historically, there was a slim chance that a significantly modified grantor trust might slip through. That is not the case now. With that said, there is still plenty of opportunity to assist Veterans and their widow(er)s the VA pension benefit.

Below is a recap of the most significant changes to the new rule as well as the new “VA numbers”.

Income for VA purposes

• There were some expansions on what is considered an unreimbursed medical expense but overall, the process for calculating the income for VA purposes remains relatively unchanged.

Net worth limit starting December 1, 2019 is $129,094

• Now a bright-line test based upon the maximum community spouse resource allowance under the Medicaid rules. That amount is indexed for inflation based upon the cost of living adjustment for Social Security.
• Net worth includes income for VA purposes based upon an annualized amount. For example, if the income for VA purposes is determined to be $200/month. Then the VA will consider that income to be an asset in the amount of $2,400 ($200 X 12 months). This will count toward the asset limit of $129,094.

Net worth exemptions

• Claimant’s home and “residential lot area” will not be a countable resource. The VA defines “residential lot area” as 2 acres or anything over two acres if the additional acreage is not marketable (i.e. slightly over 2 acres, not accessible, or zoning limitations). Anything in excess of 2 acres is considered a countable resource unless the additional acreage is not marketable. If residence is sold, it becomes a countable resource unless a new residence is purchased within the same calendar year.
• Lump sum insurance payments made as a result of the death of the Veteran are not counted toward net worth or income.
• Federal income tax refunds are excluded from income and assets for one year after receipt.

3 year look back

• Much like Medicaid, the VA has instituted a look back period. For the VA that look back period captures any transfer made during the 36 month period preceding the date of the application.
• Any transfer made during the 36 months preceding the application for less than fair market value will be considered an uncompensated transfer unless the transfer was made prior to October 18, 2018 or the transfer did not cause the claimant to be below the allowable net worth limit.
• Unlike Medicaid, not all uncompensated transfers will result in a penalty period. Only the amount transferred in excess of the net worth limit will be counted when calculating the penalty period. For example, if the claimant made a transfer of $10,000 12 months ago, and the claimant’s net worth before a transfer was $139,094, the $10,000 would considered an uncompensated transfer. By contrast, if the claimant’s net worth before the same transfer was $120,000, the transfer would not result in a penalty period because the transfer is not what caused the claimant to be under the net worth limit.

Penalty period

• Unlike Medicaid, the maximum length of any penalty period for the VA is five (5) years.
• The process for determining the penalty period for the VA is to take the amount of assets determined to be considered as uncompensated and divide that number by the current monthly annual pension rate payable to a Veteran with a dependent ($2,266 as of December 1, 2019). For example, if the applicant transferred $22,660 in excess of the net worth limit, then the penalty period would be 10 months.
• For the VA, the penalty period begins on the first day of the month that follows the last asset transfer which is very different than Medicaid. Using the 10 month penalty period example from above, this means that if the applicant made the transfers on January 1, 2019, the penalty period would begin on February 1, 2019 and end on November 30, 2019 which would mean that the claimant in this example would be eligible for VA pension after November 30, 2019.

Other Notes

• Transfers to annuities (other than mandatory transfers at the time of retirement) and promissory notes are considered uncompensated transfers.
• Life estates were not addressed by the VA at this time.

 

 

Understanding a Veteran with PTSD

This time of year, we remember with gratitude the many joys that our families, friends, clients, and neighbors have brought us, and we especially remember the sacrifices of those who have served our country. The Outreach Team at Maryville University has asked us to share this article with you, so that as attorneys, we might have a heightened understanding regarding the challenges that so many veterans face.

- Article courtesy of Maryville University.  See the original article here: https://online.maryville.edu/online-bachelors-degrees/psychology/understanding-a-veteran-with-ptsd/

Servicemen and women oftentimes face unique challenges when leaving active duty and readjusting to civilian life.

As explained by U.S. Veterans Magazine, these challenges include

• discovering ways to re-establish their roles within the family,
• having to find and obtain a civilian job (sometimes for the first time ever, such as when enlisting after graduating from high school),
• and adjusting to a life that involves making their own choices versus being told what to do, how to do it, and when.

However, sometimes soldiers also return home with challenges related to their mental wellbeing as a result of what they’ve witnessed while on active duty. And one of the most common mental challenges is post-traumatic stress disorder (commonly known as PTSD).

PTSD and the Military

The National Institute of Mental Health (NIMH) explains that PTSD is “a disorder that develops in some people who have experienced a shocking, scary, or dangerous event.” In the case of military personnel specifically, these types of events typically occur during times of war when soldiers find themselves face-to-face with not only their own mortality, but that of their fellow comrades as well.

In fact, PTSD is more common for military personnel than for the general population. According to the U.S. Department of Veterans Affairs, approximately 7 to 8 percent of the population will experience PTSD at some time in their lives. Yet, this rate is much higher for military veterans, and the exact amount depends largely on which conflict they endured.

For instance, those serving in operations Iraqi Freedom and Enduring Freedom have somewhere between an 11 and 20 percent chance of developing PTSD. However, it is estimated that approximately 30 percent of Vietnam War veterans developed or will develop this particular mental health condition. So, what is it like for veterans who are living with PTSD?

Living with PTSD

The NIMH says that individuals suffering from PTSD often have flashbacks of the traumatic event, bad dreams, and other frightening thoughts. They may also develop avoidance symptoms whereby they purposely stay away from anything that reminds them of the experience. This can mean avoiding certain places and objects that serve as a reminder of what they’ve experienced.

With PTSD also often comes what the NIMH refers to as arousal and reactivity symptoms. These include being easily startled, feeling on edge, and displaying angry outbursts. Trouble sleeping is also common with PTSD. According to the National Sleep Foundation, this is generally due to the individual feeling like they need to be alert, which is a result of the anxiety that sometimes comes with the nighttime and subsequent darkness, or the nightmares the person seeks to avoid.

Veterans with PTSD may notice cognitive and mood changes as well. For instance, they may find it difficult to remember the entire traumatic event or feel guilt associated with their part in it. Sometimes, they have negative feelings toward themselves or the world at large, or they lose interest in activities they used to enjoy.

These are all trademarks of PTSD and all of these types of responses must be present on some level for a professional to render a diagnosis. But why do some military personnel develop PTSD where others don’t, even if they’ve witnessed the exact same event?

PTSD Risk Factors

Many studies have been conducted on this very topic. One meta-analysis published in PLOS One reports that after reviewing 32 different pieces of research (21 retrospective studies, 4 prospective studies, and 7 cross-sectional studies), there are many factors that stand out as strong predictors of whether or not combat-involved military personnel will develop PTSD.

They include:

• Previous exposure to adverse life events: Being exposed to troubling life experiences (such as sexual abuse or assault) prior to joining the military can increase the risk of PTSD, partially because the event’s negative impact creates other psychological issues.
• Witnessing injury or death: If a servicemember witnesses an injury or death, or discharged his or her weapon during active duty, there is a higher risk of developing PTSD than a servicemember who has not experienced these circumstances.
• Various military characteristics: Military rank and occupation, branch of service, length and number of deployments have all been found to contribute to PTSD risk, because each factor determines how likely it is the soldier will be part of active combat.
• Deployment stressors: Being exposed to excessive temperatures, a lack of privacy in the unit, and worrying about family can all increase a vet’s risk of PTSD.
• Gender: Female veterans develop PTSD more often than their male counterparts, possibly due to reasons associated with being more susceptible to depression, experiencing less cohesion in the military unit, and being more sensitive to threats.
• Race: Minorities have been found to be more susceptible to PTSD than non-minority military personnel. However, it’s unclear if this is because this demographic tends to have more of the other risk factors, or if they are assigned to military roles that see combat more often.
• Level of education: The lower a serviceman or woman’s educational level, the higher the risk of PTSD, potentially due to not having learned effective coping skills or limited access to helpful resources.

PTSD and Post-Deployment Risks

PLOS One’s research also found that PTSD risk can rise after returning home and is often based on various post-deployment factors.

One factor is social support, and their study found that “a positive recovery environment after trauma exposure may serve as a protective factor” for PTSD. In other words, the more the servicemember’s family and friends are there to offer support after duty is complete, the less likely it is that PTSD will develop. That’s because this level of support gives the servicemember the self-reliance and self-security needed to fend off this condition.

Work status after employment is a potential risk factor as well. Specifically, if the veteran comes back and is unemployed, and therefore unable to provide financially for the family unit, this may instigate PTSD.

These types of situations can occur long after the combat ends, but they can still affect the soldier psychologically, making PTSD a threat even after returning home. Knowing all of this, how can you best help a veteran with PTSD?

Helping Veterans with PTSD

The first step involves educating yourself about how someone with PTSD typically reacts. According to the National Center for PTSD, a person with this mental health condition may appear angry, tense, or worried. They may also come across as numb, distant, or detached.

Veterans with PTSD may also be easily irritated, jumpy, or nervous, while being more demanding or protective at the same time. Intimacy issues are not uncommon with PTSD either.

All of these responses can affect family and friends, who may feel hurt, dejected, angry, or sad, especially if they don’t recognize these patterns as being normal reactions to PTSD. So, creating a positive response first requires that you understand these responses enough to know they are a normal way of dealing with this condition.

The second step is to get the veteran the outside help he or she needs. This may involve counseling-type therapy sessions (either one-on-one, group, or both), or even family therapy so the everyone involved can work through the PTSD together. In this case, it helps to find a professional who specializes in the disorder.

If possible, ask local military veterans for their recommendations. Alternatively, you can do an internet search. For instance, Psychology Today offers the ability to do a quick search based on your geographic location. Just enter your city or zip code and all local therapists with this specialty are provided. This site even provides other necessary information to help make a more informed decision as to whether to hire them, such as:

• a brief bio, along with qualifications and credentials
• specialties, issues covered, and treatment approaches
• cost per session and insurance plans accepted
• contact information for setting up an introductory meeting

VA Specific Services

The National Center for PTSD also offers The Guide to VA Mental Health Services for Veterans and Families, which shares the types of treatments that are available through Department of Veterans Affairs (VA) and what happens when you request help.

For instance, for PTSD specifically, there are various medications that can sometimes help when treating depression, anxiety, mood disorders, and sleep disorders related to PTSD. There are also various talk therapies and residential care if long-term, intensive treatment is needed.

Eligibility for these types of services is based on a number of factors, but it generally involves completing active military service in one of the U.S. branches of military, being honorably discharged, or being a National Guard member or Reservist who served in a combat zone. If they determine that you qualify, you will likely be referred to a local VA facility for treatment to begin.

There are nearly 2,000 facilities, and you can use the online locator if you want to find the closest ones to you. Simply enter your location (either your full address or zip code), what type of facility you’re searching for, and how close the facility is (you can search based on a certain mile radius or request the 5, 10, or 25 closest centers to you). The results give you the facility name, its address and phone number, and how many miles it is from your home.

The Vet Center Program is one of the options available to any active or veteran military member who has served in a combat zone or area of hostility, has experienced military sexual trauma, or has provided emergent medical care or mortuary services. Services offered at these facilities include counseling, outreach and education, substance abuse assessment and referral, employment assessment and referral, explanation of VBA benefits, and screening and referral for other issues, such as traumatic brain injury (TBI) and depression.

The more you know about and understand PTSD, the easier it is to see the impact this condition can have on the military veteran individually and the family unit as a whole. Educating yourself about treatment options helps as well, and provides you with the tools you need to help yourself or a loved one overcome this sometimes debilitating condition.

Why It Is Worth the Time to Forge Relationships with Allied Professionals—Yes, You Can Develop Profitable Referrals!

To a large extent, your success is determined by how well you manage your leads and vital relationships, especially referral relationships with allied professionals. Unfortunately, forging and maintaining profitable referral relationships is one of the greatest challenges facing most law firms.

In the coming weeks, we’re going to discuss proven strategies for building a strong referral network. We’ll talk about how to get started on the right foot, the questions you need to ask to qualify your referral sources and properly set expectations, how to track your results, and more.

At the very least, we hope these emails help you understand the importance of the following two concepts:

Contrary to what some potential referral sources would have you believe, your value is not in the referrals you send back. Your value goes far beyond that.

Your goal is not simply to have good meetings with allied professionals. Rather, your goal is to turn meetings into revenue.

Logically enough, building profitable relationships with allied professionals begins with knowing precisely which professionals you should be meeting with. We’ll talk about that next time.

Use the Proper Software and System to Build a More Efficient Team

Using state-of-the-art software within an effective system allows you to build a highly efficient team and firm. Each workflow is comprised of a series of steps with a defined set of tasks to be completed at each step. Many of the steps are designed to do things automatically, like assign tasks to staff, send emails to update your clients on progress, and much more. Your staff can easily see the work assigned to them and what they need to do next, while you get a crystal clear picture of the workflow throughout your whole firm. You will see every matter’s progress, who is working on what, the steps that need to be taken next, and what might be holding things up. Armed with information like this, you’ll be able to better hold members of your team accountable and improve overall efficiency.

As we have seen, leading-edge software allows you to generate accurate, customized planning documents following a single client interview. Over time, and with proper training, you may even be able to turn this task over to a paralegal. And in the process, free up more time to pursue new clients and generate new revenue, or to simply work less and live more. The possibilities are limited only by your priorities.

From Efficiency to Proficiency: Automatic Alerts about Potential Planning Mistakes

State-of-the-art asset protection software can alert you to potential problems. Case in point: During the interview, LWP software will display “light bulb” icons offering built-in practice tips and pointers that provide background and help you make informed choices. For example, there is a light bulb that displays information about required minimum distributions, which can help you select the best option for how to treat income from retirement accounts. These practice tips can include the language that would appear in your documents based on the selection you choose, references to case law or other legal authority, and sometimes just a simple explanation of the legal concept to help you make the proper selection for a particular client’s needs.

Light bulbs are just one of the safety nets you’ll find in LWP’s cloud-based software. A big, bold warning appears if one of your selections could impact your client’s Medicaid eligibility. It reminds you to use your best judgment to determine whether the warning applies in your jurisdiction and in your client’s particular situation.

Improve Your Efficiency Further with the Power of Dynamic Interviews

Another powerful component of some software is the ability to do dynamic interviews. Let’s say John and Jane Sample want separate revocable living trusts and you collect the information needed to do each one. But what if they change their minds and want a joint revocable living trust? The software can help you make the adjustment. When you change the parameter the software then “knows” you are only creating a single joint trust for both John and Jane and it no longer requires you to ask questions for Jane’s individual trust, or enter that information, thereby saving time.

So just how much time can you save with the right software? With the simple click of a ‘Finish’ or similar button, all of a client’s relevant information will be assembled into customized WORD documents specifically tailored to meet your client’s needs. In effect, you’ll have turned 15 to 20 hours of document drafting into less than two hours of work.

Next time we’ll discuss how the proper software can enhance document accuracy and coordination.

Create Customized Estate Plans with Greater Efficiency

The process of creating a customized estate plan begins with the client interview. State-of-the-art software uses a single-entry system; as you work through the interview, you only have to enter information once. That information is later reused in the interview and replicated in the assembled documents.

Another benefit of a single-entry system is that it allows you to easily update necessary information. For example, if you need to change Bob Sample’s name to Robert P. Sample (or make a change considerably more complex), you only have to correct it once. The change will automatically be adopted throughout the interview, and ultimately, across every document included in this particular estate plan.

Additionally, the data collection tools within the software and workflows are designed to make it easier for you to gather the information you need to draft your clients’ documents. For example, when your legal assistant or client services coordinator enters a client’s information into a matter within the workflow, the information will populate and pre-fill some of the choices within the software interview.

Next time: Discover the power of Dynamic Interviews

Improve Your Firm’s Efficiency One Keystroke at a Time

Greater efficiency is one of the keys to greater profitability. As an estate planning and elder law attorney, if you want to become more profitable, your firm must be able to draft an asset protection plan more efficiently. The right software can help you accomplish this.

The improved workflow efficiency inherent in computer software is sometimes compared to the greater efficiency automation brings to manufacturing. Consider the automobile. Building a Rolls Royce, where many of the required tasks are completed by hand, requires six months. Compare this to a typical sedan. That process, which can be roughly divided into stamping, welding, assembly, painting, and inspection, takes less than 18 hours.

At this point you might say, “My firm is not a document mill, we design customized plans. Cookie cutter plans don’t work.” You’re right. Fortunately, using the proper software does not limit you to creating a Toyota Corolla-like plan, you can use it to produce the asset protection equivalent of a Rolls Royce. You’ll see how next time.