JUST WHAT THE DOCTOR ORDERED: Introduction to Planning for – and Marketing to – Physicians”
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Transcript of JUST WHAT THE DOCTOR ORDERED: Introduction to Planning for – and Marketing to – Physicians”
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JUST WHAT THE DOCTOR ORDERED:JUST WHAT THE DOCTOR ORDERED:Introduction to Planning for – and Marketing to – Physicians”Introduction to Planning for – and Marketing to – Physicians”
Presented By:
Jeffrey R. Matsen, Attorney at LawMark Monasky, Attorney at Law, MD.
THE ADVISORS FORUMTHE ADVISORS FORUMSeptember 16, 2009 1:00pm ETSeptember 16, 2009 1:00pm ET
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Founder and Partner-In-Charge of Wealth Strategies Counsel , the Estate Planning and Business Transaction Department of Bohm, Matsen, Kegel & Aguilera, LLP, of Costa Mesa, California
A Southern California “Super Lawyer” (Los Angeles Magazine), with a national reputation for emphasizing wealth preservation for his high net worth and professional, accomplishment-driven clientele
Nationally recognized CLE Speaker in the areas of asset protection and LLCs
Areas of emphasis include: International and Domestic Asset Protection, Estate Planning & Wealth Preservation, Real Estate Acquisitions & Development, Business Formation & Transactions, Probate, and Trust Administration
Certified Business Appraiser by the National Society of Appraiser Specialists
Member, Society of Trust & Estate Practitioners (“STEP”) Fellow, Center of International Legal Studies Professor, Chapman University School of Law & Western State
University College of Law, in Business & Estate Planning Visiting faculty member, European law schools Awarded highest rating (“AV”) for competency and ethics, as
published in the prestigious international Martindale-Hubbell attorney directory
Awarded highest rating (“10/10 Superb” )by The Nationally Renowned Attorney Rating Service, ‘AVVO’
Recognized as one of “O.C.’s Top Lawyers” by OC METRO Magazine
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Estate Planning attorney focusing on asset protection for physicians and dentists
Member of WealthCounsel
Graduate of University North Dakota School of Law
Board certified neurosurgeon by the American Board of Neurological Surgery
Selected Best Doctors in America, Central Region
Diplomat, National Board Medical Examiners
Graduate of Columbia University, College of Physicians & Surgeons New York City
Neurosurgery training at Mayo Clinic and University of Maryland
Pediatric neurosurgery fellowship University of Texas , Southwestern Medical School Dallas
Fellow American College of Surgeons
Fellow American College Legal Medicine
Member of American Bar Association, Real Property, Probate & Trust Section; American Medical Association, American Association of Neurological Surgeons, Congress of Neurological Surgeons, State Bar Association of North Dakota, North Dakota Medical Association
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Doctors Are Great Clients Doctors Are Great Clients
Top ten percent of US doctors control over $350 billion dollars in wealth
As of now, physicians’ business is recession proof
95% of MDs each earn over $250,000 per year
All doctors need Asset Protection and Estate Planning
There will always be doctors. There are somewhere between 700,000 and one million doctors in the US
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Why the Increased Liability Exposure?
Victim Oriented Society
Deep pocket
Plaintiff lawyers
Increased media and society awareness
High notoriety for malpractice and other errors and omissions type of action
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Doctor and dentist clients need to be aware of proper structure for practice
Professional corporations
Segregation of assets
Sub S election
Share holder agreements
Other practice structure items
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Understanding How Physicians Understanding How Physicians ThinkThink
Trusting and caring
Intelligent
Non Confrontational
Surgeons
Attitudes towards attorneys
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Know What Is Important to Know What Is Important to PhysiciansPhysicians
Asset Protection:
MDs have virtually no trust in the legal system
MDs have sacrificed heavily both financially and time wise and want to protect their wealth
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How To Obtain Physician How To Obtain Physician ClientsClients Use physicians’ personality traits and quirks to your
advantage
Accessibility
Saturdays, evenings, wherever and whenever the MD is available
Offer other services within your firm that are unique to physicians
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The Ladder of Success - Level One: The Business Entity
- Level Two: Basic Estate Planning - Level Three: Exemptions and
Marital Planning - Level Four: Liability Protected
Entities for Investment Assets - Level Five: Domestic Modular
Planning with Asset Protection Trust
- Level Six: Offshore Modular Planning with Asset Protection Trust - Level Seven: Advanced estate
Planning Techniques
Reviewing and Implementing The Plan
Reviewing and Implementing The Plan
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Inside CreditorsInside Creditors
Definition: Inside creditors are those creditors
whose claim is directed against the business operation or real estate which is operated and owned inside a business entity.
Creditor
Business Opsor
Real Estateof
LLC or LP
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Protecting Against Inside Protecting Against Inside Debts or ClaimsDebts or Claims
Operating Businesses:
C Corporations
S Corporations
Limited Liability Companies
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Segregate Business AssetsSegregate Business Assets
Real estate should be held in LLC and leased to professional practice or business
Equipment can be held in LLC and leased to professional practice or business
Separate liability protected entity for different business or practice functions and operations
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Outside CreditorsOutside Creditors
Definition: Outside creditors are those creditors
whose claims arise outside the purview of the business entity and are generally asserted against the business or real estate owner personally.
CreditorLLC or LP Member/Partner
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Marital Property PlanningMarital Property Planning
Consider possibility of transmuting separate property or jointly held interest of professional spouse into separate property of non working spouse
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Marital Property PlanningMarital Property Planning
Quid pro quo
or fair market
consideration
is preferable
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Marital Property PlanningMarital Property Planning
Remember, what is good for the goose is good for the gander. What is good for asset protection planning will probably be good for divorce consequences.
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Placing Assets in LLCPlacing Assets in LLC
Provides protection against inside debts or claims against the assets within the LLC
Provides protection against personal liability because of the Charging Order
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What is a Charging Order?A charging order is more or less like a
garnishment of income in that it is an order of the court in favor of the creditor requiring that any distributions from the limited partnership or LLC to the debtor limited partner or member be made to the creditor who obtained the charging order.
Charging Orders and Charging Orders and ForeclosureForeclosure
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Advantages of Foreclosure to Creditor Sale of economic right;
Broad Charging Order
Forced dissolution
Disadvantages of Foreclosure to Creditor Tax liability for “Phantom Income”
Foreclosure of a Charging Foreclosure of a Charging OrderOrder
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DOMESTIC ASSET PROTECTION DOMESTIC ASSET PROTECTION TRUSTSTRUSTS
The general rule in most states is that creditors can reach the interest of the Trustor (the maker of the trust) of domestic self settled trusts
Recently, several states have adopted legislation somewhat similar to various offshore jurisdictions that provide by statute various degrees of asset protection for a trustor’s interest as a beneficiary in a self settled trust
Alaska, Delaware, Rhode Island, South Dakota and Nevada seem to have the best laws.
If properly set up and maintained, the Domestic Asset Protection Trust will be a significant barrier to creditors and will afford significant leverage to the debtor with respect to its negotiations with the creditor. This is especially true if the assets of the trust that need to be protected are domiciled in a state which is the domiciliary of the Asset Protect Trust
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Why Go Offshore?Why Go Offshore?
2.) International Connections
Relatives or Family Offshore Own Property Offshore Doing Business Offshore
1.) To set up your nest-egg and protect your liquid funds
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FOREIGN ASSET PROTECTION FOREIGN ASSET PROTECTION TRUSTSTRUSTS
A Foreign Asset Protection Trust is a trust that is set up in an offshore jurisdiction which has enabling trust legislation providing for substantial protection against creditors of the trustor
One of the greatest advantages of the Foreign Asset Protection is the fact that by its very nature any legal attack against its assets are transferred abroad to a different legal system
A foreign Trustee is necessary for the efficacy of the Foreign Asset Protection Trust
The biggest advantage in utilizing the Foreign Asset Protection Trust is that assets can be placed offshore beyond the jurisdiction of the U.S. courts
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Modular StructuringModular Structuring
The Modular Structure
DAPTor
FAPT
LLC#1 LLC#2
95% Member 95% Member
5% Member 5% Member
Real Property Liquid Investments
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Nearly 100% of neurosurgeons, cardiovascular surgeons, OB-GYN’s sued at least once
90% of general surgeons, radiologists sued
Neurosurgeons are sued most frequently.
Each year, ½ neurosurgeons, 1/3 of orthopedic
and trauma surgeons, ER physicians are sued
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Attorneys with high trust level in their personal MD: 78%
Attorneys with high trust level in MD’s professionally: 41%
MD’s with high trust level in their personal attorney: 71%
MD’s with high trust level in attorney’s professionally: 29%
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4% of attorneys found “nothing” positive about
working with physicians2
5% of MD’s found “nothing” positive about working with attorneys
MD’s enjoyed working with attorneys because of
their intelligence and knowledge
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Attorney’s greatest challenge working with physicians are:
arrogance & elite attitude inadequate business knowledge and lack of trust
When attorneys were asked what physicians could do to improve their working relationship,
the overwhelming answer was “trust us”
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Physicians believe the legal system is attacking
their judgment and integrity in a very personal way, and that attorneys (including judges), are not deserving of high levels of trust
When physicians were asked what attorneys could do to improve their relationship, the response was to change the legal system and
was less personal against the attorney
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Different educational processes
Attorneys and physicians most often interact when there is a problem for the physician
Physicians feel attorneys get a free pass as a profession, as the ultimate arbiter, the judge, is an attorney and not a physician
Both attorneys and physicians feel the other does not understand their profession
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Physicians: scientific method95% confidence interval
Attorneys: legal standard of proof51% - preponderance of the evidence
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Treat every patient as a potential plaintiff
Treat every medical record entry as a legal document that will be blown up in front of a jury
Limit high risk procedures
Purchase tail insurance or an Occurrence policy
Practice defensive medicine
Order extra tests and procedures order frequent consultations with other specialists refer patients to ER whenever called
do not take ER call
Move to another state
Retire early
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Learn as much about the physician and specialty PRIOR to meeting
Physician not on call or post-call
Bring spouse
Insist on scheduling follow-up appointment
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Fees
Explanation of estate planning process
Probate
Trusts
Asset Protection
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Mark Monasky
NEUROSURGEON
St. Alexius Hospital
9
00 East Broadway | Bismarck
N
D, 58501
P
hone: 701.530.6629
ATTORNEY
Bormann & Myerchin
4
18 East Broadway | Bismarck
N
D, 58501
P
hone: 701.250.8968 | Fax: 701.250.8982
n
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Thank you
JEFFREY R. MATSEN
695 Town Center Drive | 7th Floor | Costa Mesa, CA
92626
Phone: 714.384.6500 | Fax: 714.384.6551
www.wealthstrategiescounsel.com |
www.877probate.com