advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

September 6, 2011
The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Feature Article: Estates & Trust Law

What You Need to Know… About the “New Tax Law”
by Francis Burton Doyle, Esq., WealthPLAN

After much speculation, in December of 2010, the President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”), which contains important estate tax provisions.

There are three important temporary changes under the Act which impact your overall estate planning to which I would like to draw your attention:

• Lifetime gift tax exemption amount is increased to $5 million for gifts made in 2011 and 2012.  This lifetime exemption returns to only $1 million in 2013.

• The estate tax exemption amount is increased to $5 million. The estate tax exemption also returns to only $1 million in 2013.

• Portability. This means that the first spouse to die can leave his/her entire estate outright to the surviving spouse, who makes an election on the deceased spouse’s federal estate tax return claiming the unused exclusion of the first spouse to die.  Thus, at the death of the surviving spouse, he/she will have both his/her own exclusion amount plus any remaining exclusion amount of the first spouse to die.  Barring any lifetime gifts, a married couple can pass $10 million to estate beneficiaries free of estate tax.  In order to carry the predeceased spouse’s unused exclusion amount, a timely estate tax return must be filed and an election must be made.

Those clients who have already used most or all of their $1 million gift tax exemption now have an additional $4 million with which to work to transfer wealth to the next generation.  As with all gifting, this will also transfer the future appreciation on the assets transferred now.

Those clients who sold assets to an irrevocable trust in exchange for a promissory note may simply want to forgive all or part of the outstanding balance of those notes given the new 5 million dollar gift tax exemptions now in play.

As an important matter, we must now determine whether the formula clause contained in the revocable trust of a married couple will function as intended.   For instance, with the increased exclusion amounts, and the potential to pass $10 million to beneficiaries free of estate tax, the classic ABC formula three trust structure (Survivor’s Trust/Marital Trust/Bypass Trust) may no longer be desirable or appropriate. However, in many cases the ABC three trust structure mentioned above is still important for non-tax reasons because under that system, separate property and community property assets are typically divided into a decedent’s share and a survivor’s share consisting of each spouse’s one half of the community property and all of his or her separate property.  The decedent’s share runs for the benefit of the surviving spouse but then passes to the deceased spouse’s children or other heirs and not to a new spouse of the survivor or some other person.

One of the benefits of this structure is the control afforded to the first spouse to die by guaranteeing that his/her share of the estate will be distributed to remainder beneficiaries whom he/she has chosen during his/her lifetime. Under the new tax law, this can still be accomplished, but without the need to divide the deceased spouse’s estate into both a Marital and a Bypass Trust.   The Bypass Trust also offers creditor protection to the surviving spouse

Keep in mind, however that the substantial exclusion amount of $5 million falls back to $1 million in 2013.  It is therefore important to draft plans which have some formula, either a disclaimer formula or a forced ABC formula, be in place for clients whose combines estates exceed $2 million in case Congress fails to exceed the current 5 million dollar exemptions.

An important choice must be made by the fiduciaries of estates of decedents that died in 2010.  Fiduciaries have the option of electing to have their estates be subject to the federal estate tax at a 5 million dollar exemption level and obtain a full “step up” in basis under §1014 of the Internal Revenue Code to date of death value or alternatively elect out of being subject to the federal estate tax for 2010 and have the income tax basis of the assets in the estate remain that of the decedent before his or her death.  The later position results in the heirs of the decedent receiving a “carry over” basis in the assets rather than a full “step up” to the date of death value of the assets.  There are important upward adjustments allowed if one elects out of the estate tax, but in general these adjustments are limited to approximately $1,300,000.

The article in this issue is written with the goal that you will take a moment to consider how you are currently managing your planning activities around the ever changing Estate Tax Legislation. Find out how to develop a strategy that works during these tumultuous times in today’s article.  And be sure to post a comment on our blog and tell us what you think, okay? Enjoy!

Also if you need additional information on the 2010 Tax Relief Act (the “New Tax Law”) signed by President Obama on December 17,2010, consider purchasing our MCLE seminar entitled, “How to Navigate Estate Planning & Trust Administration Under the “New Tax Law”, more info here. This seminar provides a comprehensive and useful explanation of what estate planners need to know right now for planning, drafting and administering trusts and estates in 2011 and beyond.

P.S. A big “Welcome” to all of the new readers who have joined our ‘tribe’ of  legal and financial professionals! You are going to come to rely on the practical, how-to-information, solutions and strategies you find here to help you develop and manage a successful estate planning practice.

Did the above article resonate with you? Do you disagree? Do you have an insight to add?
If so, I’d love to hear your thoughts & questions. Please feel free to e-mail me here fbdoyle@advancedlegaltraininginstitute.com.

Quote To Ponder
“The first responsibility of a leader is to define reality,
the last is to say “Thank you.”
In between the two, the leaders must become a servant.“
~Max De Pree

If you are interested in our other course offerings, please review the MCLE accredited,
Integrated Estate Planning Seminar Series™, which includes over 26 hours of pre-recorded
Audio CDs, MCLE case studies,forms and comprehensive seminar workbooks.
Visit advancedlegaltraininginstitute.com or call 650-960-3772 to order.

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching | Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com | all rights reserved

advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

October 5, 2011
Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Feature Article: Law Practice Management Series

About Advanced Legal Training Institute
by Mary G. Anderson, Life Management Consulting

When I started Advanced Legal Training Institute almost five years ago, the #1 goal was to offer timely, relevant, state-of-the-art legal education in a collegial and supportive environment that facilitates dialogue and debate. I knew that I would prefer attending a smaller meeting than one that is held in a hotel ballroom with a huge crowd with a tiny overhead screen on the stage. Our goal was to provide MCLE legal education that includes formal lecture presentations, case studies and small group problem solving sessions in a small classroom environment. We did it!

I chose an estates & trusts attorney, Frank Doyle,  with a lengthy background as the founder of WealthPLAN and as someone who brings over 30 years of experience in tax, estate planning, litigation, probate and trust administration, to be the main presenter. Frank has taught law school and MCLE courses nationwide for Lorman, NBI, CalBar and more. Frank knows what works in the classroom and why. Our programs offer the best ideas from all of his presentations, case studies and professional experience to provide each of you with a step-by-step map to support our aging population as you design, develop and update their estate plans.

Sadly, estate planning attorneys are sued more than any other specialty. Frank has been frustrated with the fact that he never found the information that would allow an attorney to capture the basics of developing and expanding a thriving estate planning practice, so he  created the menu of programs we now have on the process of integrated estate planning.

I would love for you to become a part of our community– sign up for our newsletter, attend a live seminar, purchase a pre-recorded Video DVD and/or Audio CD. You will not be disappointed. Often, lawyers, especially in smaller firms, frequently are not good business people, and there is often a reluctance to get involved in management. Laws change– then they change again. Unfortunately, this is a luxury that small law firms no longer can afford. It’s a highly competitive business today and law firms can’t afford not to have well-defined goals and objectives plus proactive technical leadership. Please look over our course offerings at our website online store here.

Many estate planning attorneys have clients that are in need of guidance and support as they manage their elder years. Through my company, Life Management Consulting, I also offer 1-on-1 coaching services for your clients on some of the challenging aspects of end-of-life/elder care such as  choosing/evaluating a nursing home/assisted living center, professional organizing of important papers and documents, estate settlement and support with funeral planning, grief and loss. I have designed a consulting service to assist clients who are either in 1) the midst of handling a death of a loved one and executing their estate and/or 2) a client who has decided to get organized and plan ahead by completing their will, organizing their important papers, completing a checklist of final wishes and creating a legacy will. She also offers Succession Planning services for business owners and executives as they develop their vision and successors for generations to come.

Our goal at Advanced Legal Training Institute is to offer you the technical, managerial (planning, leading, organizing and controlling) and client support services to make your job easier and more fulfilling. Thanks again for your patronage and please let us know what educational resources and training you would like to participate in!

Mary G. Anderson is an Organizational Consultant/Coach who provides eldercare, legacy & end-of-life planning coaching & consulting services for estate planning clients. She is the author of “My Estate Management Guide” and a Certified Mediator & Estate Settlement Agent. Contact Mary by e-mail here.

Quote To Ponder
“The first responsibility of a leader is to define reality,
the last is to say “Thank you.”
In between the two, the leaders must become a servant.“
~Max De Pree

If you are interested in our other course offerings, please review the MCLE accredited, Integrated Estate Planning Seminar Series™, which includes over 26 hours of pre-recorded Audio CDs, MCLE case studies,forms and comprehensive seminar workbooks. Visit advancedlegaltraininginstitute.com or call 650-960-3772 to order.

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching | Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com | all rights reserved

advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

October 5, 2011
The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Important Information on the
Federal Gift Tax Exemption

October is a great month to reconnect with your clients.  It’s the beginning of the fourth quarter and clients are thinking about year-end tax planning. As part of that process, clients should be reminded that their tax planning not only involves income tax planning, but also includes gift, estate and generation skipping tax planning. Because of the huge increase in the federal gift tax exemption from 1 million dollars to 5 million dollars per individual, there are tremendous opportunities for gift planning. Under the present law, a husband and wife can give up to 10 million dollars to their children and grandchildren without paying one cent in federal gift tax! Study our feature article this week entitled, “How to Utilize the Federal Gift Tax Exemption” below.

Feature Article: Estates & Trust Law

How to Utilize the Federal Gift Tax Exemption
by Francis Burton Doyle, Esq., WealthPLAN

In our last newsletter, I encouraged readers to think beyond the $13,000 federal gift tax annual exclusion. I explained that although a very powerful and often under utilized tool, the annual exclusion has its limitations.  In addition, over the years the focus on the annual exclusion has dwarfed the thinking attendant to major transfers of wealth from one generation to the next.  This newsletter expands on that message and highlights three important areas where using all or part of the new 5 million dollar exemption will greatly benefit clients and their families.

Here are three major situations where utilization of the federal gift exemption is important:

1) First, the large gift tax exemption allows for the forgiveness of large inter family loans, which were necessary in order to prevent gift tax liability in years when the exemption was at the 1 million dollar level.  In many instances where, a senior generation wished to transfer a business or a large parcel of real property loans were used to facilitate the transfer.  Further, in many instances these loans were implemented at a time when interest rates were much higher than the present low interest rates. The payments on these loans are often very significant and have the effect of mitigating the transfer tax benefit of the transfer. In these cases, careful consideration should be given to having these loans forgiven so as to eliminate the transfer of significant wealth back to the senior generation and the large gift tax exemption provides an excellent opportunity for this forgiveness to occur.

2) A clients desire to transfer parcels of real estate to their children and grandchildren presents second opportunity. The large gift tax exemption coupled with depressed real estate prices has created an ideal environment for such transfers.  Furthermore, the tax law still allows for the application of minority interest and lack of marketability discounts to be applied to these transfers of property where entities such as family limited partnerships are employed as a mechanism to affect these transfers.

Here it should be noted that the IRS has proposed rules, which would eliminate or substantially curtail the applicability of such discounts for family wealth transfers.  It certainly could be argued that there has been no better time to make inter generational transfers of property and that there is an urgency to do so. The federal gift tax exemption is scheduled to revert to 1 million dollars per individual in 2013 and rules which would curtailing the applicability of minority interest and lack of marketability discounts could change as early as next year.

3) As final opportunity afforded by the present tax law concerns generation skipping trusts. The five million dollar gift and estate tax exemption also applies to generation skipping transfers. Accordingly, now is the time to establish trusts which benefit grandchildren and great grandchildren.  These trusts are commonly referred to as “Dynasty Trusts” because they run for the benefit of multi generations. In years past, the low federal gift tax exemption posed a significant barrier to the creation of these trusts. This year, however, the 5 million dollar per individual exemption allows these trusts to be established without any out of pocket federal gift tax exposure. The advantage of these trusts is to provide a fund to promote a family’s welfare from generation to generation without incurring federal estate, gift or generation skipping transfer tax.

In conclusion, this October offers a plethora of planning opportunities for estate planners and their clients. These opportunities can be taken only if planners bring them to the attention of clients. Consequently, now is the time to communicate with clients and inform them of the choices that are available to them under the present gift, estate and generation skipping tax law. Plan to invite your clients to work with you to take advantage of those benefits as soon as possible.

Also if you need additional information on the 2010 Tax Relief Act (the “New Tax Law”) signed by President Obama on December 17,2010, consider purchasing our MCLE seminar entitled, “How to Navigate Estate Planning & Trust Administration Under the “New Tax Law”, more info here. This seminar provides a comprehensive and useful explanation of what estate planners need to know right now for planning, drafting and administering trusts and estates in 2011 and beyond.

P.S. A big “Welcome” to all of the new readers who have joined our ‘tribe’ of  legal and financial professionals! You are going to come to rely on the practical, how-to-information, solutions and strategies you find here to help you develop and manage a successful estate planning practice.

Did the above article resonate with you? Do you disagree? Do you have an insight to add?
If so, I’d love to hear your thoughts & questions. Please feel free to e-mail me here fbdoyle@advancedlegaltraininginstitute.com.

Quote To Ponder
“The first responsibility of a leader is to define reality,
the last is to say “Thank you.”
In between the two, the leaders must become a servant.“
~Max De Pree

If you are interested in our other course offerings, please review the MCLE accredited,
Integrated Estate Planning Seminar Series™, which includes over 26 hours of pre-recorded
Audio CDs, MCLE case studies,forms and comprehensive seminar workbooks.
Visit advancedlegaltraininginstitute.com or call 650-960-3772 to order.

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching | Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com | all rights reserved

advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

October 5, 2011
The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Feature Article: Law Practice Management Series

Wrapping Up ONE AMAZING YEAR:
How to End 2011 Strong by
Following a 4th Quarter Action Plan Map
by Mary G. Anderson, Life Management Consulting

“What gets measured, gets managed.”
~Peter Drucker

It’s the final quarter of the game of “Year 2011″… How are you doing so far? Last week we talked about using systems to monitor your important work, this week I want to give you some motivation to carry you through to the year’s end. For lack of a better name, I will call this the “4th Quarter Action Plan Map”. This is a simple system that when followed will help you to know what’s missing in your action plan and where to find it! You can use this system to plan a project, plan a day, plan a week; you know the drill… plan an 4th quarter year-end.

Take out a piece of blank paper and draw a box about 5″ wide by 5″ high and draw a line thru the middle from side-to-side and from the top to the bottom. You should have 4 squares that are about the same size. In the top left square, write the word GOAL. In the top right box, write the word FEEDBACK. Now go to the bottom left box and write the word SUPPORT. The final box (on the bottom right) should have the word REWARD in it.

Now let me give you a simple example:
Let’s say my son is planning a summer trip to visit a college friend in Seattle.

Goal: His goal is to drive from Silicon Valley, CA to Seattle, WA. So the goal is pretty simple (write the simple goal in the top left box).

Feedback: Now the 2nd step is to look at the question of how will he know if he is on track? This step usual involves numbers– like which route works best, how many miles away is the destination, how long should it take, etc. Basically if you aren’t measuring your goal you will never know if you have achieved it!

Support: What happens if he gets a flat tire? Gets sick? Needs to stop overnight?  Gets lost? What resources are available to make the trip safely and successfully?

Rewards: Finally, once he arrives what is it that will make all the effort worthwhile? How will he know that all the planning, driving, expenditures and more were worth it? In conclusion, as you plan the next three months of your practice, think about these topics and review these questions… 

Goal Setting- Where am I Going & Why?
What are your top fourth quarter outcomes? What are the tactical actions that you need to take in order to accomplish your outcomes?

• What are your October 2011 outcomes?
• What are your November 2011 outcomes?
• What are Your December 2011 outcomes?

Remember you get what you focus on! Your mind operates in 3 quadrants; the past, the present, and the future. What is your 90-day intention? What skills will you develop? How often will you plan your day on paper? Develop a 90-day map and follow it!

What is the one area of your business that you will make the most improvement in? What will you accomplish that will surprise you, your co-workers, friends, or spouse? What are 3 reasons why you will succeed this quarter? Your baseline represents everything that you are currently doing to produce the results you are producing. (your actions, time management, goals, marketing, mindset, etc.) What are 3 things you can add to your baseline this quarter to increase your results?

Feedback- How Am I Doing?  What Do I Need to Change?
Look into the future about 90 days. It is now the end of 2011. What did you accomplish during this final quarter? What will motivate you this quarter to pull together any loose ends and finish strong? There are times in our lives when we take several steps back over a 90-day stretch or we could accomplish almost nothing (like treading water). There are also times in our life when we make tremendous progress over 90 days. Plan to make the next 90 days one of those stretches in your business and life. Review your written “4th Quarter Action Plan Map” and check ‘your numbers’ to finish strong.

Support- Where Do I Go for Help/Support/Knowledge?
Who are your mentors? What resources are available to you to assist in handling challenging business conundrums? Do you mastermind your plans with others you respect? What do you do on a daily basis to care for yourself and keep your energy high? What systems of support help to keep you on course?

Rewards- What in it for me? Am I Having Fun? What’s Working Well?
Now is the time to take that break, that vacation, that hike, that long drive, that cooking lesson– whatever it is that makes your heart sing. Reward yourself for a job well done and then swing around and grab another goal to achieve!

Good luck on your journey…

Mary G. Anderson is an Organizational Consultant/Coach who provides eldercare, legacy & end-of-life planning coaching & consulting services for estate planning clients. She is the author of “My Estate Management Guide” and a Certified Mediator & Estate Settlement Agent. Contact Mary by e-mail here.

Quote To Ponder

“The first responsibility of a leader is to define reality,
the last is to say “Thank you.”
In between the two, the leaders must become a servant.“
~Max De Pree

If you are interested in our other course offerings, please review the MCLE accredited, Integrated Estate Planning Seminar Series™, which includes over 26 hours of pre-recorded Audio CDs, MCLE case studies,forms and comprehensive seminar workbooks. Visit advancedlegaltraininginstitute.com or call 650-960-3772 to order.

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching | Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com | all rights reserved

advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

September 27, 2011
The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Feature Article: Law Practice Management Series

Succession Planning:
The Key to a Sustainable Law Practice
by Mary G. Anderson, Life Management Consulting

What Is succession planning? Succession planning is “a means of identifying critical management positions, starting at the more junior levels of project/case management extending all the pay up to the highest position in the firm. Although it is often confused with replacement planning, succession planning goes beyond replacement planning because its focus is broader than one position, department or specialty. While often associated with planning for a senior attorney/partner/executive replacements only, it is really a much broader concept than that.

Each position in the organization needs to have the job specifications defined thoroughly so that at any time a qualified substitute could be recruited in an emergency.  Cross training and development among your staff provides insurance for an unexpected loss of a team member for whatever reason. In an ideal scenario, a talent pool would be identified at each level of the organization/firm and a typical goal is to prepare as many successors as possible to be 80 percent ready for promotion to any position at the next level on the organization chart.

A succession plan is usually developed based on the assumptions that:

•    A goal is to identify a talent pool of people who are willing to be considered for promotion, qualified to lead and desire to work to be developed for the position

•    The competencies required at each level may be different in the future so that merely “cloning” the past paralegal/attorney/partner/leaders’ skills is not appropriate

•    Development occurs primarily on the job rather than by off-the-job training experiences. In succession planning it is usually assumed that the current organizational structure will be preserved. But talent pools provide sufficient flexibility so that reorganizations will not pose major challenges to building bench strength.

Have you considered the management structure for your firm in the next five years, ten years, or twenty years? Do you have any associates available to step up competently into your shoes and understand the systems that have been developed and documented for sustainability?

Consider how your firm, associates, paralegals, etc. would manage if you were dealing with an unexpected accident, illness or other malaise that took you away from the helm for several months– do you have a succession plan in place?

Mary G. Anderson is an Organizational Consultant/Coach who provides eldercare, legacy & end-of-life planning coaching & consulting services for estate planning clients. She is the author of “My Estate Management Guide” and a Certified Mediator & Estate Settlement Agent. Contact Mary by e-mail here.

Quote To Ponder

“Surplus wealth is a sacred trust which its possessor is bound to administer in his
lifetime for the good of the community.“
~Andrew Carnegie (1835-1919), who “administered” surplus self-wealth of
$400M in the last half of his life by giving it all away

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching |  Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com | all rights reserved

advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

September 16, 2011

The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Feature Article: Estates & Trust Law

5 Steps to a Solid Estate Planning Practice
by Francis Burton Doyle, Esq., WealthPLAN

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching |  Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com | all rights reserved

advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

September 16, 2011

The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Important Information on Estate Tax Extension:

The due date for the estate tax return and payment of estate tax for estates of decedents dying from January 1, 2010 through December 16, 2010 is September 19, 2011.  However, just this week, the IRS announced that it would grant an automatic six month extension to March 19, 2012 to any taxpayer filing a Form 4768 requesting an extension to file a federal estate tax return and pay any federal estate tax which may be due.

The significance of this announcement is that it allows taxpayers an extension to March 19, 2011 to pay federal estate taxes. Normally, extensions of time to pay the federal estate tax are not automatic and require a showing of “reasonable cause” for non payment. In cases where there is any possibility that an estate tax return may be filed, it is recommended that a Form 4768 be completed and filed prior to September 19, 2011 requesting an extension of time to both file the return and pay the tax to March 19, 2012.

Our analysis (which has been vetted with other attorneys and certified public accountants) is that filing a Form 4768 requesting an extension to file a federal estate tax return and pay the tax does not prejudice or limit a taxpayer estate from later opting out of the federal estate tax in favor of “carryover basis” under IRC §1022 by filing a Form 8939.  This week’s IRS announcement changed the deadline for the filing of the Form 8939  from November 15, 2011 to January 17, 2012.

P.S. A big “Welcome” to all of the new readers who have joined our ‘tribe’ of  legal and financial professionals! You are going to come to rely on the practical, how-to-information, solutions and strategies you find here to help you develop and manage a successful estate planning practice.

Did the above article resonate with you? Do you disagree? Do you have an insight to add?
If so, I’d love to hear your thoughts & questions. Please feel free to e-mail me here fbdoyle@advancedlegaltraininginstitute.com.

Also if you need additional information on the  2010 Tax Relief Act (the “New Tax Law”) signed by President Obama on December 17, 2010, consider purchasing our MCLE seminar entitled, “How to Navigate Estate Planning & Trust Administration Under the “New Tax Law”, more info here.

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching |  Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com| all rights reserved

advanced legal training institute
Powerful | Focused | Interactive Continuing Legal Education

September 27, 2011
The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Feature Article: Law Practice Management Series

Build a Successful & Sustainable Law Practice:
Create Office Systems, Procedures & Scripts
by Mary G. Anderson, Life Management Consulting

“97% of all failure is due to the SYSTEM and not the person.”
~W. Edwards Deming

Do you have any systems and/or procedures, scripts or manuals that provide a road map to how your law practice works each day?  My goal in this article is to encourage you to document the important systems that you use in your office. Last week we talked about succession planning and the importance of developing systems of protocol and management to provide long-term sustainability for both the firm and the development of the staff.

Long ago when I was working at Hewlett Packard as personnel liaison in the manufacturing division– we were constantly looking at methods, business theories and other information that would support our 1st line supervisors to maximize the output/production in the printed circuit board facility. It was at that time that we instituted “Quality Teams” as a unique method of garnering feedback, involvement and knowledge from the production workers themselves. We learned about the systems each employee used to move the product along the line more quickly.

We set up ‘team meetings’, which included a variety of division personnel (e.g. the VP, site nurse, 1st line supervisor, financial worker, inventory/production assistant, etc.). It was during these regular meetings that we learned about ‘best practices’ but the most valuable outcome of these interactions was the increase in communication between management and the production workers.

It ends up that when it is all said and done, there is a method or system to almost every activity that occurs in the workplace. Defining the activities and systems is the beginning of defining a ‘best practice’. What does this have to do with law practice management? My goal in this article is to offer the suggestion that you begin today to review your current office systems and consider these questions:

Leadership Systems
•    Do you have successful systems in place to manage your time, space, paper, email, correspondence, appointment scheduling, etc.?
•    Do you have a regular system of communicating priorities, projects and updates to your staff?
•    Do you have system in your organization to develop and measure annual, quarterly, monthly, weekly and daily goals for the business?
•    Do you connect job performance in your organization to the firm’s annual, quarterly, monthly, weekly and daily goals? Is everyone on board?

Employee & Staff Systems
•    Do you have individual job descriptions for every position in your office?
•    Do you have a performance review scheduled for each employee?
•    Do the employees have a specific script on how to interact with clients to provide consistent communication?
•    Do you regular meetings with employees to provide 1-on-1 coaching in areas they need to improve?
•    Do the current employees understand all of the firm personnel policies, e.g. sick leave, vacation time off, payroll advances, etc.? Is there a personnel manual that everyone has access to viewing?

Client Systems
•    Who is your ideal client? Do you have a referral system and network that you use frequently? Is it documented?
•    Do you have a system for client intake? Do you have a packet of materials that convey both the process and services that your new client will receive?
•    Do you have a system and/or script for the document-signing meeting? Do you have a follow-up/satisfaction questionnaire for each client?
•    Do you have a system for project management? Do you have a checklist of forms required, etc. for various drafting projects?

Marketing Systems
•    Do you have a system in place to review your website to make sure the links are working and that it has been updated and is accurate?
•    Do you have a system to stay connected to your client base, e.g. a newsletter/blog, greeting cards for holidays, live events or informative topic updates?
•    Do you have an annual marketing calendar that continues to raise your brand awareness both online and offline?
•    Do you have a system to keep your contact database updated and accurate? Are you able to access important client information without searching everywhere frantically?
•    Do you have a system to keep your firm literature (brochures, stationary, business cards, etc.) updated and current?

Financial Systems
•    Do you have a system to pay invoices, send out invoices to clients, and enter payments into your bookkeeping system—if so, is it documented and updated regularly?
•    Do you have easy access to the legal, financial, insurance and tax reports that are critical to running a successful business?
•    Do you have a process and/or system for collecting overdue invoices? Is it documented and followed?

Office & Equipment
•    Do you have a master list/inventory of all computers & office equipment with serial numbers, furniture, building supervisor/management information etc.?
•    Do you have a regular system to back up your computer programs, client files, your firm website, etc.? Do you have a master list of all firm passwords in case of emergency?
•    Do you have a system for ordering office supplies? Is it documented? How often do you review your choice of vendors for pricing and services?

Take some time to look at your current systems and let me know what I missed! Good luck!

Mary G. Anderson is an Organizational Consultant/Coach who provides eldercare, legacy & end-of-life planning coaching & consulting services for estate planning clients. She is the author of “My Estate Management Guide” and a Certified Mediator & Estate Settlement Agent. Contact Mary by e-mail here.

Quote To Ponder

“The greatest management principle in the world is:
the things that get rewarded and appreciated get done.”
~Michael LeBoeuf

            life management consulting
Preserve Your Memories | Protect Your Assets | Live Your Legacy Now

About the Program Director~ Mary G. Anderson, Founder,
Life Management Consulting
•    Organizational Consultant/Coach
•    Author of “My Estate Management Guide”
•    Corporate Training Manager, Hewlett Packard, 25 years of experience as an Executive Trainer and Professional Speaker
•    Certified Conflict Resolution/Mediator Specialist
•    Consultant/Management Training Specialist @ Fortune 500 Companies
•    Producer and Host of “Voice of the Valley” Television Show

Client Education Services: Legacy, Business Succession & End-of-Life Planning Products/Services include:
•    Live & Recorded Seminar & Teleseminar Packages  (including Audio CDs, Video DVDs & Workbooks)
•    Newsletter: My Life, My LegacyPLAN

Client 1-on-1 Consulting, Coaching, Speaking & Onsite Customized Training Services include:
•    End-of-Life Planning (Legal, Financial, Last Wishes & Legacy Plan)
•    Elder Care Needs Assessment, Choices & Caregiver Support
•    Conflict Mediation Among Heirs
•    Funeral Planning (Eulogy, Obituary, Reception, etc.)
•    Legacy Planning (Documenting Family History & Values, Creating a DVD, etc.)
•    Business Succession Planning
•    Estate Settlement Agent Services/Inventory
•    Grief, Loss & Recovery Support

www.lifemanagementconsulting.com

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©2011 | advancedlegaltraininginstitute.com | all rights reserved

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September 27, 2011
The Newsletter
Estate Planning Updates…

Dear Attorneys & Wealth Planning Professionals,

Important Information on Year-End Gift Planning

In my planning practice, the question of year-end gifting always surfaces in the last calendar quarter of the year.  Because of a change in the federal gift tax law, this year the issue of year-end gifting has special significance. Study our feature article this week entitled, “Year-End Gift Planning Strategies” below.

Feature Article: Estates & Trust Law

Year-End Gift Planning Strategies
by Francis Burton Doyle, Esq., WealthPLAN

One of the most significant features of the 2010 Tax law is the $5,000,000 federal gift tax exemption.  The federal gift tax tends to get overlooked during the planning process.  One of the reasons was that for many years the federal gift tax exemption dwarfed in comparison to its estate tax exemption counterpart. In 2009, the federal gift tax exemption was $1,000,000 and the federal estate tax exemption was $3,500,000. Under the new tax law, effective January 1, 2011, the federal gift tax exemption is $5,000,000 and is now equal to its $5,000,000 estate tax exemption counter part.

The federal gift tax exemption is a lifetime exemption which means that it applies cumulatively to all of the gifts which an individual makes during his or her lifetime which exceed gifts made under the federal gift tax exclusion which now is $13,000 per individual donee per year. Here it important to understand the difference between the federal gift tax exclusion and the federal gift tax exemption.

In most years the focus of year-end gifting has been on the annual exclusion. To be sure the annual exclusion remains one of the most powerful and under utilized tools available to estate planners. Because the $13,000 amount is measured on a per donee basis, it is virtually limitless. For example, a person could give that amount to a vast class of people and give away their entire estate in small $13,000 increments.

The annual exclusion, however, does have its limitations. It is difficult to use in connection with gifts of non-liquid assets. For example, if a client wants to gift a parcel of real property or a family business, precise valuations must be obtained and small slivers of the property or entity must be spread around to a large number of people.  This approach does not facilitate effective succession planning where the client wants to give interests in the property or entity to one person or a small group of people as part of an overall succession plan. For example, if a client wants to gift a $1,000,000 parcel of real property to his three children, the annual exclusion will not be sufficient to accomplish the task.

In addition, it is difficult to use the annual exclusion where the client wants to use a trust in order to make the gift in a controlled way.  The annual exclusion applies only to gifts of a “present interest” which generally excludes gifts made by means of a trust. When dealing with family properties or entities, many clients are unwilling to make outright gifts to their heirs for fear that the family will lose control of those assets.

This year, the $5,000,000 federal gift tax exemption allows clients to make substantial gifts of property or business entities without incurring any gift tax liability. Accordingly, this year and 2012 are the years when clients can effectively implement long-term succession plans and make transfers of property in controlled ways to facilitate their use and benefits for their children and grandchildren.

P.S. A big “Welcome” to all of the new readers who have joined our ‘tribe’ of  legal and financial professionals! You are going to come to rely on the practical, how-to-information, solutions and strategies you find here to help you develop and manage a successful estate planning practice.

Did the above article resonate with you? Do you disagree? Do you have an insight to add?
If so, I’d love to hear your thoughts & questions. Please feel free to e-mail me here fbdoyle@advancedlegaltraininginstitute.com.

Also if you need additional information on the  2010 Tax Relief Act (the “New Tax Law”) signed by President Obama on December 17,2010, consider purchasing our MCLE seminar entitled, “How to Navigate Estate Planning & Trust Administration Under the “New Tax Law”, more info here. This seminar provides a comprehensive and useful explanation of what estate planners need to know right now for planning, drafting and administering trusts and estates in 2011 and beyond.

If you are interested in our other course offerings, please review the MCLE accredited, Integrated Estate Planning Seminar Series™, which includes over 26 hours of pre-recorded Audio CDs, MCLE case studies,forms and comprehensive seminar workbooks. Visit advancedlegaltraininginstitute.com or call 650-960-3772 to order.

Customized Onsite Legal Seminars & Training (MCLE)
Legal Consulting & Coaching |  Speaking | Client Support Services
©2011 | advancedlegaltraininginstitute.com | all rights reserved