Lawyers With Purpose

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.

Seize the Day, Every Day: The Benefits of Cutting-Edge Asset Protection Software

Given the amount of time and energy you put into running your law firm, do you feel like you should be making more money?

Do you wish you could spend more time with your family or on the hobbies and activities that interest you most?

Do you feel like there is simply not enough time in the day to accomplish everything you need to get done?

In short, does it sometimes feel like the sacrifices you make to own an elder law and estate planning firm outweigh the benefits?

We would never suggest that asset protection software is some kind of panacea, capable of eliminating all of the aforementioned challenges. However, it’s a great place to start. And the better the software, the greater your chances of seizing control of your time, your firm, and possibly, your lifestyle.

In the coming weeks we’ll discuss what the proper asset protection software can help you accomplish, starting with greater efficiency. Until next time.

Introducing October 2019 Members of the Month, Robin Gordon & Adam O’Dell

 

Nashville Tennessee’s renown Music Row has been home to the Gordon Law Group for over 25 years, but its reach extends from Greenville, SC to Charleston, SC, to Nashville TN, and soon to Kissimmee, FL where a new office is about to open.  The firm offers exceptional legal services to those dealing with matters involving entertainment law, business law, intellectual property, family law, and estate planning, and prides itself on staying on top of the ever-shifting laws and keeping up with the latest in technological advances that will benefit its clients. 

LWP sat down with attorney Adam O’Dell to talk about the Gordon Law Group, which has been an LWP member since July 2017, and about his firm’s experiences with LWP and in his market.

 

How did you come to work for the Gordon Law Group?

I always knew exactly what I wanted to be.  I knew I wanted to go to The Citadel.  I also knew that I wanted to be Marine JAG officer and did this until I was injured.  I always knew I wanted to be an attorney, too, but more on the business transaction side rather than litigation. 

I’ve had both good and bad experiences with estate planning.  I’ve seen the fall-out from lack of planning, and how proper planning makes the transitions smooth when someone has passed.

I’ve been with the Gordon Law Group for 3.5 years at this point.  When I first started, I was a jack of all trades, and I did what was needed for the firm.  I spent time in litigation and family law, but I wanted to get involved with estate planning.  I now do all of the legal-technical work and meet with the clients. 

 

What do you believe sets Gordon Law Group apart from your competition?

It’s the care and access that we give to the clients that sets us apart.  We also attempt to return all communications within 24 hours.  Our competitors charge a lot, and it’s hard for their clients to get a call back from them, whereas we’re known for undercharging and over-providing.  I have met with my clients in their homes when that’s what’s easiest for them, and we’ve built a rapport.  They are interested in my life, too—now that I’m recently married and have a new home, I have clients who have given me wedding presents and housewarming presents.

 

What brought you to LWP? 

We looked at a few options when making our decision, but everything seemed to be singularly tracked—geared toward offering a revocable living trust.  LWP helped us focus on Medicaid planning and asset protection, and I’d had a personal experience with that, so LWP membership was enticing to me.

 

How tightly do you follow LWP’s systems and processes? 

We try to follow the system as best we can, but we’re still working on the workshop portion.  We’re not doing them yet.  The financial advisors are doing the education.  As a multi-practice firm, we are using Actionstep for our estate planning needs, but the other areas of our firm use a different program. Phil’s trying to keep me in check.

 

What is the greatest success you’ve had since you fully engaged with LWP? 

Our biggest success is being able to bring a higher level of competency and services to our community.  There aren’t a lot of attorneys in the area that focus on Medicaid. We weren’t doing Medicaid planning before joining LWP.  At the time, estate planning was 2% of our offerings, now it’s close to being a third to a half. 

 

To what, specifically, do you attribute your revenue growth? 

There have been several things.  First, doing RMS changed a lot; unlike a lot of attorneys, we’re not just wait for the phone to ring; we’re actively working to get clients.  Having a strong referral source even allowed me to open another office.  We now have 3 locations; we didn’t have that 3 years ago.  Also, many times our clients are coming in with either no knowledge, or they are ill-advised.  We’re setting them straight when they get bad advice. 

 

Do you attend LWP’s TAPER events, and if so, what wowed you there?

We’ve been to every TAPER since joining.  My biggest TAPER learning was when we did our first Practice With Purpose in Washington D.C. We’d been a member for 2 months at that time.  We had Amanda answering questions, walking us through the software. 

 

What is your favorite LWP tool? 

The RMS—getting out there to market yourself, getting the fluidity of meeting with someone, and getting the courage.  People have to meet with you multiple times before they’re comfortable referring you.  We don’t have workshops; we don’t do retail marketing.  Other things have gotten in the way of implementing workshops.  We want to do them, but we haven’t been able to do them yet.

 

Do you have a client success story that you’d like to share?

I was in process of doing a Medicaid qualification for clients for whom it was hard to get away from the house; it’s the wife who needs care.  So, I picked up paperwork at the clients’ home, and there were tears of gratitude—they know that I’ve created a plan that helps them.  The care that’s needed will be paid for; Medicaid will cover in a year after the penalty period. 

It’s rare for attorneys to make house calls, but I meet with clients wherever they need to meet with me.  When someone is in a wheelchair, they can’t come to see me.  I once drove 8 hours to meet with a client who wanted to work with an LWP attorney. 

 

What kinds of changes, if any, are you currently seeing in your market?   

We’re seeing people become more price-conscious than they were 1 year ago, and we’re seeing more people start thinking about Medicaid planning than just a simple estate plan.  More are concerned about asset protection.  It might be that they’re becoming more aware that bad things can happen, and they want to be prepared.

 

FUN FACTS:

Share something about yourself that most people don’t know.

Instead of going on my honeymoon, I came to TAPER New Orleans!  It worked out, though.  My wife enjoyed New Orleans, so I wasn’t in too much trouble. We’re now planning to go to Paris—it will be my first trip out of the country.

 

What is your favorite book, and how did it impact your life?

I don’t know if I can pick just one.  On the fiction side, I like Dan Brown’s novels, but I do a lot of audio books while driving.  I’ve read 27 books this year.  The Bible is the one that had the most impact.  I’m getting a M.A. in Theology currently. 

 

 

Introducing June 2019 Member of the Month, Jenny Rivard

Located in Manchester, New Hampshire and serving all of New Hampshire and Massachusetts, American Wealth Protection has been an LWP member since the fall of 2017.  Owner and Founder Jenny Rivard began her legal career at just 14 years old when she worked typing documents and answering phones for the estate planning law firm where her mother worked.  After several years at that firm, she knew that she wanted to become an estate planning and elder law attorney.  She avidly pursued her career, obtaining her undergraduate degree in just 3 years, and in 2009, became the second youngest person to have passed the bar in the state of New Hampshire.  After a brief stint at another firm, she created her own a year later, and went on to innovate by being the only firm in her market to include financial planning among her firm’s offerings, providing seamless service to her clients.  Today, Jenny and her husband, Patrick, who is also an attorney and plays a key business development role at AWP, are focused not only on growing their business but also parenting their four beautiful children.

LWP sat down with Jenny Rivard to talk about her firm and the changes it’s experienced since becoming a member. 

What brought you to LWP? 

About six years ago, I had a client who came to see me because she needed a plan.  She had Alzheimers and could no longer do math, but prior to this, she had been a physicist!  We prepared all the standard documents, but she needed more.  “Who will help with the day-to-day things, like bathing?  What checkbook should my son use when he needs to take over the finances?” were among her many concerns.  I realized that despite having a lot of tools, in order to provide a real plan, I needed more.  I decided to get involved with Medicaid planning, and when I searched online for training, I found LWP. 

I knew I needed the Medicaid software, so I attended Practice With Purpose, and I joined LWP right then.  I’ve been a platinum member for two years. 

How tightly do you follow LWP’s systems and processes?

My firm definitely speaks the LWP language, but we’re a unique firm, so despite my strong inclination to want to follow the systems as strictly as possible and not change the workflows, I realized that my firm simply didn’t fit perfectly in the category.  We wanted one system that could handle all of the services we offer, including financial planning and insurance, while keeping all the notes for every file together.  There are confidentiality issues that get quite complex with that, so, we’ve had to adapt LWP’s systems to fit. 

What is the greatest success you’ve had since you fully engaged with LWP?

We’re on the brink of doubling our revenue within about a year to 18 months, but even so, I’d say that the biggest success was being able to see the 10,000-foot view so we could see what was to come next.  Before LWP, I’d done pretty well on my own, but I was working in the business.  Since joining LWP, we’ve gone from being a one-person to a five-person firm.  That was due to the coaching—the ability to get to the next steps that I couldn’t have achieved on my own.  Hands down, for me, the most valuable part of LWP has been the coaching with Mandy and Candace.  They help us stay focused and spent a good deal of time helping us tweak the software to fit our model.

To what, specifically, do you attribute your revenue growth?

It’s the coaching…more so than anything else.  I was too “in it” to see the 10,000-foot view of what was to come next.  My LWP coaches got me out of that.  I don’t think I would’ve gotten to this place without that coaching.

What do you believe sets American Wealth Protection apart from your competition?

Our unique model sets us apart.  It’s the fact that we have the financial advisors on staff, and we do both legal and financial seminars.  While we do have clients that have their own advisors, often times, they’re in separate buildings and not always on the same page in regard to the client’s needs.  Our model offers a more integrated approach.  Also, our approach to financial planning is to plan for the worst-case scenario.  We assume the highest inflation and taxes, and from that, we figure out how long our clients’ income will last.  Once that scenario has been created, we see what’s left to protect, which takes us into estate planning.  I think our model is pretty unique right now, but people will probably migrate to it over time.  A lot of attorneys think they need to bring someone in house, but in my case, I had both the legal and the financial planning licenses. 

What is your marketing model?

I have over 2,000 clients I’ve gathered in the last 9 years, so we get a lot of client referrals.  Other than that, there are a few referrals from other places, and of course, we do the workshops.  We would like to start more traditional advertising, but we’re not doing it yet.  For now, we’re continuing to work on our infrastructure.

Do you attend LWP’s TAPER events, and if so, what wowed you there?

We attend one TAPER per year, and the IMQ (In Marriage QDRO^®) presentation was amazing.  But, our firm’s TAPER “aha” moment is really just that it keeps us centered and moving in the same direction, and we really need that by October of each year.

What is your favorite LWP tool?  It’s a tie between the dashboard and the Medicaid software.  The dashboard is an easy way to see what happened all month—what we should have earned vs. what we actually collected.

What kinds of changes, if any, are you currently seeing in your market?

In our market, we’re seeing a trend among widows whose husbands had handled the finances.  They’ve suddenly found themselves in a situation in which they don’t know who to call.  There’s an unmet need there. 

FUN FACTS:

Share something about yourself that most people don’t know about you.

I’m a “little old lady at heart.”  I really enjoy crossword puzzles and jigsaw puzzles.  I grew up on a farm, so now I can my own vegetables, and I love all kinds of outdoor activities, like fishing.

What is your favorite book, and how did it impact your life?

I love to read.  The book that taught me how to adapt my personality to that of the person with whom I’m speaking so we’re connected was Jeffrey Fox’s Rainmaker.  It has nothing to with law at all.  It’s super small, easy read, and the reason I could bring in business.  I found it when I was starting my own firm and googling every sales book I could to try to figure things out.

 

 

The Impact of Foreign Trust Status in an Increasingly Global Age

Definition of Foreign Trust

A trust is a “foreign trust” unless both of the following conditions are met: (1) a court within the United States must be able to exercise primary supervision over the administration of the trust (the “Court Test”), and (2) one or more United States persons must have the authority to control all substantial decisions of the trust (the “Control Test”). IRC § 7701(a)(30)(E), (31)(B); Treas. Reg. § 301.7701-7(1).

The Court Test

A trust can fulfill the Court Test by complying with a safe harbor. Treas. Reg. § 301.7701-7(1)(c). Specifically, the Court Test will be satisfied if: (i) the trust instrument does not direct that the trust be administered outside of the United States [(the trust may simply remain silent on the issue, see Treas. Reg. §301.7701- 7(1)(c)(2), Example A)]; (ii) the trust is in fact administered in the United States; and (iii) the trust is not subject to an automatic migration provision [(i.e.—there is no clause requiring the trust to automatically migrate from the United States if any U.S. court attempts to assert jurisdiction or otherwise supervise administration directly or indirectly, see Treas.Reg. § 301.7701-7(1)(c)(4)(ii))].

The Control Test

The Control Test is met where one or more United States persons has or have the authority to control all substantial decisions of the trust. Treas. Reg. § 301.7701-7(a)(ii). A “United States person” includes a citizen or resident of the United States, a domestic partnership, a domestic corporation, an estate that is not foreign, and a trust that is not foreign. IRC§ 7701(a)(30). “Control” means “having the power, by vote or otherwise, to make all of the substantial decisions of the trust, with no other person having the power to veto any of the substantial decisions.” Treas. Reg. § 301.7701-7(d)(iii).  Hence, if a decision by multiple trustees must be unanimous, no co-trustee may be a non-United States person. If a decision may be made by majority, then a majority must be United States persons. No non-United States co-trustee may have veto power. See Treas. Reg. § 301.7701-7(d)(v).  A “substantial decision” is one that is not merely ministerial (such as bookkeeping, collection of rents, and execution of investment decisions), which includes, but is not limited to: whether and when to distribute income or corpus; the amount of any distributions; whether a receipt is allocable to income or principal; whether to compromise, arbitrate, or abandon claims of the trust; and investment decisions. See Treas. Reg.301.77-1-7(d)(ii).

Consequences of Foreign Trust Status

A domestic trust that becomes a foreign trust is treated as having made a transfer of its assets to a foreign trust. SeeIRC 684(c). This, in turn, would cause a capital gains tax recognition event. Though there is an exception for any grantor trust, see IRC §684(b), this exception would cease to exist—such as for an Irrevocable Pure Grantor Trust (“iPug™”)—after the death of the grantor(s), once any subtrusts created thereunder come into existence.  Another potential downside to foreign trust status involves the additional reporting requirements to which they are subject. See IRC § 6084.  Any failure to comply with these reporting requirements can lead to significant penalties.  See IRC § 6677.

Conclusion

If a trust fails to meet either the “Court Test” (i.e.—it is not subject to the jurisdiction of a U.S. Court) or the “Control Test” (i.e.—a non-U.S. person has the authority to control all substantial decisions of the trust), then it is a foreign trust. A foreign trust suffers from less favorable tax treatment than a domestic trust, including but not limited to earlier recognition of capital gains, additional reporting requirements, and additional penalties for non-compliance.

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.