Interactive Legal Blog

InterActive Legal Advisor Comments on Important Issue Facing Children of Retired Parents

InterActive Legal Advisor and Director of Elder Law Strategy, Letha McDowell, was featured in a recent Money Magazine article titled How to Support Your Retired Parents Without Sinking Your Own Retirement Plan. The article sheds light on the seldom discussed topic of working-age children who find themselves in the position of providing financial assistance to their retired parents, potentially to the detriment of their own future financial security. Letha is quoted extensively, suggesting practical solutions such as direct payment of a parent's utility or other bills in order to ensure that the child's financial contributions are devoted to necessary items. The article draws upon the expertise of Letha and other professionals to provide an informative discussion that will help attorneys and other advisors navigate a situation faced by many of their clients.

Letha's contribution to this article is a prime example of her caring and pragmatic approach to helping her clients, and her commitment to furthering discussion of topics that are critically important to those in the elder law community. We are proud of Letha and her accomplishments, and grateful to have the opportunity to draw on her talents at InterActive Legal. Personally, I am happy to count Letha as a friend and colleague, and congratulate her on her continued success.

Vanessa L. Kanaga, Esq.
InterActive Legal President
and Director of Content Development

Understanding A Client Facing Loss

by Anna E. Byrne

One of the most difficult things we as estate planners face is the eventual and inevitable responsibility of helping and comforting a client whose spouse has passed away.

It is heart wrenching. But it is also the time when we can most offer help and provide the greatest value to our clients, and can create a sustaining and powerful connection between us and our clients.

If you are an established estate planner with some years of experience under your belt, it is a good bet that you learned your profession in the era of the technician. 

Expertise was the professional differentiator, but as more and more technology enters and overtakes document creation and other aspects of our workplace, what will set apart the more successful estate planners in the near future is their ability to master the human side of client interactions.

Times have also changed in terms of the level of service that is being offered to consumers everywhere, and this means that client expectations about what good service means in estate planning has changed as well. It’s not enough to be able to provide the documents and explain the numerical options and outcomes anymore. Human connection does not mean generating more documents and more emails.

A third, significant trend is the reality of demographics. Demographics are destiny, and as baby boomers age, and as wives outlive their husbands to a large degree, widows will become the majority of the clients that you will be helping. 

'Twas the Week Before Christmas

by Teresa Bush, Esq.

 

Twas the week before Christmas, and Congress was trending.

Impeachment and budget bills both had been pending.

Articles to impeach were debated and passed

And left for the Senate to later rehash.

 

With that taken care of, the next thing to do

Was keep the government running, the whole year through.

So Nancy in her power suit and Mitch in his tie

Passed a spending bill that included a little surprise.

 

In the back of the bill, they included a matter,

That sent estate and financial planners a-chatter.

Away to the end of the bill we all paged,

To read about the SECURE Act, and how it had changed.

The Collectibles Trustee: It's crucial to place your treasured items in the right hands

Historical items can be valuable.  This presentation-inscribed Colt Model 1861 New Model Navy Revolver, from the Colt Co. to E.W. Parsons of Adams Express Co., sold for $805,000 at a September 2011 auction. 

by Vanessa L. Kanaga, Esq.

This article was originally published by Heritage Auctioneers & Galleries, Inc., "Trusts & Estates Journal," Fall 2019, page 17.

Tell me if this story sounds familiar: Brian was a military history buff who gathered a carefully curated collection of books and artifacts over his lifetime. By the time Brian died, his collection was quite valuable. Brian named his daughter, Jessica, as the Executor under his Last Will and Testament. Jessica was the only of Brian's three children living nearby, had always been a devoted daughter, and had an MBA, so it only made sense for her to administer his estate. Unfortunately, Jessica did not share Brian's love of military history and, not knowing what she had on her hands, sold most of the collection to a local pawn shop for less than half of what it was worth. Brian's son, Jacob, who shared his father's affinity for the collection, was devastated when he heard what his sister had done. Not only was the estate depleted of valuable assets, Jacob was deprived of the opportunity to own these very meaningful items.

Selecting an Executor or Trustee

Naming an Executor (called a Personal Representative in some states) to administer your estate is an important decision, and can be a difficult one, particularly if you own property that requires special knowledge and attention, such as fine art and collectibles. Though sad, it is safe to say that most estate planners could tell a tale or two like Brian's. Often, the people we trust most to handle our affairs after death did not share all of our interests in life, and may not be the best choice to manage, sell, and distribute items that are precious and valuable. Conversely, those who share a common interest in collectibles may not be the best fit when it comes to handling the other financial and personal aspects of estate administration (not to mention that it can be quite a burden to place on someone who is not a close family member).

Are You a Sitting Duck in Your Law Practice? An In-Depth Look at ADA Accessible Websites

by Audrey Ehrhardt, Esq., CBC, Practice42

ADA accessibility and compliance in law firm websites across the nation are becoming not only more relevant, but a necessity as we see an increasing amount of litigation against businesses over their websites.  Website accessibility lawsuits center around the fact that all, or a portion of, the business website or app is inaccessible to the disabled.  We are watching as the filing of website accessibility lawsuits rises dramatically.  While in 2017, we only saw an increase in these types of lawsuits by 17%, in 2018 we have seen an increase by 181%.¹

Most of us understand and have taken the steps we need to take in order to ensure our physical location is ADA friendly, but what about our law firm website?  From parking spaces and clear, wide entryways to employee training on relay communication and braille friendly documents, our law practices are friendly to disabled persons.  This holds true in many small firms, even when they are not required to be disability-friendly under Title I of the ADA.

Documentary Film, “Lives Well Lived,” Continues to Impact Lives, For Both Young and Young at Heart

In January 2019, at The Heckerling Institute on Estate Planning, a select group of InterActive Legal subscribers were invited to a private luncheon screening of the documentary film, "Lives Well Lived."  The film visits with 40 people ranging in age from 75 to 100 years young and casts a light on what these fully actualized individuals continue to do in order to make their own lives rich and well lived in the latter decades of life.

At the January event, InterActive Legal guests were delighted to meet and have their photo taken with the film’s creator, Sky Bergman.  Ms. Bergman closed out the event by describing the creative process behind the film and answering audience questions. 

 

InterActive Legal Welcomes Deirdre R. Wheatley-Liss, Esq. and Scott M. Solkoff, Esq. to its Advisory Board

Melbourne, FL - InterActive Legal welcomes Deirdre R. Wheatley-Liss, Esq. and Scott M. Solkoff, Esq. to its Advisory Board.

It is my honor to welcome two of the nation’s top elder law attorneys, Deirdre Wheatley-Liss and Scott Solkoff, to the InterActive Legal Advisory Board. It is fitting that Deirdre and Scott join our cadre of Advisors at the same time, because each of them exhibits what I have come to appreciate as the essential qualities of many successful elder law attorneys: compassion for those they serve, a commitment to supporting the elder law community and their colleagues, and the entrepreneurial spirit to develop a thriving practice.

Deirdre, a long-time InterActive Legal subscriber, has a depth of knowledge in the areas of elder law and estate planning, and a phenomenal insight into the business of an elder law practice. She understands the needs of the broad spectrum of elder law attorneys, whether practicing at a large firm or in a solo practice. Scott, in addition to being a talented and successful elder law attorney, has a unique gift for teaching, which I had the pleasure of witnessing when I attended the 360° Elder Law Practice Builder Conference earlier this year. His ability to explain the foundational concepts of elder law and estate planning in a way that is comprehensive yet approachable led to numerous “a-ha” moments for all of us in attendance, regardless of background and level of experience.

Major Change in Planning for Retirement Benefits on the Horizon

by Vanessa L. Kanaga, Esq.

On May 23, 2019, the U.S. House of Representatives passed a bill that, if signed into law, would significantly change estate planning for Qualified Plans and IRAs (referred to herein, collectively, as "Retirement Benefits"). The Setting Every Community Up for Retirement Enhancement Act of 2019 (the "SECURE Act")[1] received overwhelming support in the House, passing 417-3. The SECURE Act extensively amends the provisions of the Internal Revenue Code (the "Code") relating to Retirement Benefits, including provisions that apply during the life of the account owner or participant (referred to herein as the "participant"), as well as provisions applicable to Retirement Benefits inherited by beneficiaries at the participant's death.

In addition to other changes affecting contributions to and administration of retirement accounts, the SECURE Act would eliminate the maximum age for contributions to "traditional" IRAs (currently age 70 ½).[2] It also would raise the age at which a participant must begin taking distributions (referred to as "Required Minimum Distributions" or "RMDs") from a Qualified Plan or traditional IRA from age 70 ½ to age 72.[3] However, one of the more significant changes in the SECURE Act, from the perspective of estate planning professionals, is its effect on the ability to stretch distributions of inherited Retirement Benefits over the life of the beneficiary.

Meet the newest member of InterActive Legal's content team, Mohineet Khosla!

 

Melbourne, FL — InterActive Legal extends a warm welcome to the newest member of its legal team, accomplished estate planning attorney, Mohineet Khosla.

Mohineet Khosla received her J.D. from New York University School of Law in 2001. Following law school, Mohineet practiced for over a decade at Milbank LLP in NYC, where she was a colleague of InterActive Legal Editor-in-Chief and Co-Author, Jonathan Blattmachr, and InterActive Legal President, Vanessa Kanaga. Her practice included providing sophisticated estate planning advice to high net worth families, both domestic and international. Mohineet has also represented clients in audits before the Internal Revenue Service and fiduciaries on complex estate and trust administration matters.

As a consultant with the InterActive Legal Content Team, Mohineet will apply her expertise in researching and developing content for the InterActive LegalSuite programs. Her depth of knowledge and experience, combined with her meticulous and reasoned approach to her work, will allow InterActive Legal to continue to enhance and expand its offerings while maintaining the quality and accuracy that have given InterActive LegalSuite its reputation as the premium automated document drafting system for estate planning and elder law attorneys.

The Merging of Estate Planning and Elder Law

by Scott M. Solkoff, Esq.[1]

Two major pressures are moving the practices of Estate Planning and Elder Law together. The dominant pressure is one of demand. For most Americans, the greatest threat to their financial well-being is not taxes. It is the cost of incapacity and long-term care. Addressing these needs with the ethics and skills of an attorney are in high demand. The second pressure is the continuing erosion of value proposition. This second pressure is further broken down twofold: perceived commoditization and the reduced market for tax planning.

Those who routinely deal with high net-worth clients are largely insulated by these pressures. The very wealthy can bear the storm of incapacity and long-term care and they are more apt to understand the value of good lawyering relative to taxes. Given today’s large exemption amounts, however, only one-tenth of one percent of Americans are subject to federal estate, gift and generation-skipping tax exemptions.[2] Most Americans need a different approach, one that blends the Estate Planning and Elder Law toolboxes.[3]

Estate Planning Attorneys are therefore looking to diversify their practices, address prevalent problems and preserve or increase their income streams. Many are wedding Elder Law to their existing practices. Elder Law is among the fastest growing areas of law and has a great level of personal reward. For Estate Planning attorneys, it is also a relatively easy practice area to incorporate since Elder Law and traditional Estate Planning are not-too-distant cousins. This blog post explains the core practice components of an Elder Law practice and how to determine whether Elder Law is right for you.