The January 2009 issue of The WealthCounsel Quarterly features articles written by 12 members of WealthCounsel on a variety of legal and practice management topics.
We want to thank the many WealthCounsel members who have taken time over the past year to demonstrate their legal competence and their commitment to professional collaboration by contributing quality articles that benefit their colleagues.
If you are a member of WealthCounsel and interested in contributing an article for the April 2009 issue, please send an email to Marlene Frith. The deadline date for submission may be found in the left column.
In addition to a compilation of articles written by attorney members, The WealthCounsel Quarterly also features staff-written content, including a message from company leadership, state forum news updates, and a calendar of education events scheduled through the remainder of the year for WealthCounsel and its sister companies, The Advisors Forum and ElderCounsel.
Legal/Technical Articles:
A Certain Sensitivity – Estate Planning for Women
By Nancy L. Sander, Esq.
This article provides valuable insight into the unique planning needs of women. Sander provides relevant strategies in addressing the needs of married, single, and previously married female clients. Sander notes that planning for professional women, retired women and those in numerous other lifestyle situations should be sensitively approached through the lens of women’s challening circumstances.
Asset Protection Considerations for Business Owners
By Ryland F. Mahathey, Esq., CPA, LL.M., and Brad Milhauser, Esq. LL.M.
Mahathey and Milhauser note that many business owners devote much time and energy to “working in” their business to improve business operations and profitability; however they often neglect to “work on” their business by not addressing certain asset protection issues. In this informative article, the authors note that when considering asset protection strategies for business owners, protecting the internal value of the business through a few important but often overlooked documents can be just as important as the legal wrapper placed on the ownership of the business.
Variable Life Insurance Products: The Flaw is in the Design, Not the Concept
By Alan R. Jahde, Esq., LL.M.
Revenue Ruling 2008-22 clarified how to create a “defective” grantor trust without causing the trust to be included in the grantor’s estate. Daniel Capobianco’s article discusses the ramifications and utility of this ruling.
The Irrevocable Income Only Trust
By Brian F. Mahoney, Esq.
In this article Mahoney discusses the use of the Irrevocable Income Only Trust as a mechanism in Medicaid/nursing home planning. He probes issues such as whether the deeding of realty into an IIOT would make a pre-existing mortgage due and payable; the use of testamentary powers of appointment; escape hatches; Adult/Child Trustee pitfalls; and issues related to appointing a “Designating Person.”
Are you Missing an Opportunity to Help a Veteran?
By Valerie L. Peterson, Esq., ElderCounsel, LLC
Peterson points out in her article that there are currently more than 9.2 million veterans aged 65 or older living in the United States. Many of these veterans lack the financial resources necessary to sustain them in their final stages of life. She offers suggestions on a number of planning oppporutnities for attorneys to assist clients in obtaining Veterans Benefits.
Succession Planning for Solos: Peace of Mind for Your Family, Opportunity for Your Practice
By Stephen T. O’Neill, Esq.
O’Neill explains that clients often want to know what happens to their estate plan if the attorney is no longer around. He offers succession planning solutions for other attorneys and explains that under his plan, each client would be given the opportunity to transfer his/her file to an attorney of choice, while contemporaneously providing for the purchase of his firm to one or more estate planning practioners who share his ideals.
The Need for a Pour Over Will and the Search for Rich Aunt Mabel
By Bruce G. Kaufmann, JD
Kaufmann’s clients often wonder why they need a Pour Over Will if they have a Revocable Living Trust. He points out that if the Trust is properly funded and if all assets are transferred into the Trust, then the Power Over Will may not be necessary. But often an assets get left out, and the Pour Over Will is the solution.
Fat-Free Fat: Nontax Considerations for Discussing Philanthropy With Your Clients
By Matt Brown, Esq.
Brown points out that most clients appreciate attorneys who care enough about them to give valuable advice and recommendations about philanthropic opportunities. He explains the importance of asking clients the “why” questions, instead of the “what” questions.
A Bargain Sale of Land to a Land Trust: How You can Make Some Money While Making a Difference and Save on Taxes, Too.
By Robert A. Ross, Esq.
In this article, Ross shares his expertise in the use of the Charitable Bargain Sale as a means of helping donors accomplish their personal and philanthropic goals while benefitting land preservation in Door County.
The Granite State’s Entry into Asset Protection Trusts
By Gary Holmes, Esq.
Holmes explains that New Hampshire, with the adoption of the Qualified Disposition in Trust Act in 2008, has created an attractive alternative for the creation of Domestic Self Settled Asset Protection Trusts (DAPTs). New Hampshire has positioned itself with its very favorable tax climate; its elimination of the Rule Against Perpetuities; and modern, flexible Trust laws, to make itself more attractive than other APT laws including Alaska, Delaware and South Dakota.
Tax Aspects of Life Settlement Arrangements
By Randy Gardner, JD, LL.M., MBA, CPA, CFP; Julie Welch, MS, CPA, CFP; and Neil Covert, JD
The authors explain that as clients advance in age, their need for life insurance also changes. Clients with life insurance policies that no longer serve a purpose have many choices, including surrendering the policy to the carrier, selling the policy (called a life settlement), viaticating the policy, borrowing from the policy, or entering into a 1035 exchange. Case examples are presented in terms of the use of life settlement transactions as an estate planning solution, and the tax implications involved.
Practice Management
Safety in Numbers: Using WealthCounsel Attorneys to protect and Expand Your Practice
By Gary Fales, Esq.
Fales details his experiences as a WealthCounsel member, and explaines that as times are getting more turbulent, the collaboration with fellow membhers is more important to him than ever. He compares WealthCounsel to “one jumbo size law firm” spread over all 50 states, and explains that this gives him the confidence that there will be an expert within the “firm” on every estate planning, tax, asset protection, probate or elder law issue that he might counter. He concludes by saying that whether you are thriving in your practice or merely surviving, you will always do better by utilizing the network of WealthCounsel attorneys.
Associate Pay: Meet Firm Objectives by Rewarding the Behavior You Wish to Promote
By Mary Merrell Bailey, JD, CPA, MBA, MST, MSA
Bailey explains incentives that her firm uses to encourage associate attorneys to focus on production, marketing and sales in order to meet the firm’s business objectives. Bailey notes that the firm’s untraditional method rewards self-starters who have entrepreneurial spirit, and that the results have proven worthwhile for the growth of the firm and the associates.
Rainmaking 101: Top 20 Influencers
Mark Powers & Shawn McNalis
In this article, Mark Powers (President of Atticus) and Shawn McNalis (Atticus senior practice advisor) discuss the importance of an attorney’s referral sources and provide important tips on what you must do to cultivate the relationships you have with each referral source. This is a “must read” article for all attorneys who want to protect one of their greatest assets – their Top 20 Influencers.
Member Updates
The following articles are included in the newsletter. Download the full newsletter to read these member updates!
WealthCounsel’s Year in Review
Matt McClintock and Jonathan Mintz, Co-Executive Directors
Upcoming Events
This summary includes the education-related events from January-March 2009 for WealthCounsel, ElderCounsel, and The Advisors Forum. Go to our Events Calendar or our Educational Calendar for more information on any of these events.
Beta Testing Underway for Physicians Module: “WealthDocx 7” in 2009 to Feature Contributions from DAPT Beta Testers
2008 Industry Trends Survey Generates Strong Interest: Full Report Released on January 12, 2009.Click here to download.
Michael J. Sweeney Announced as the Winner of the Industry Trends Survey Drawing
WealthCounsel Estate Planning Strategies Book Now Available. Click here for more details.
State Forum News
Click here for more details and a schedule of upcoming meetings.
By Jenny Ellingson, Director of Project Management & Employee Relations