June 2015 Vol. 6, No. 3
Illinois State Bar Association Senior Lawyers
The newsletter of the Illinois State Bar Association’s Senior Lawyers Section
Chair’s column Inside By Barbara Slanker Chair’s column ...... 1 s the 2014-2015 bar year comes to an end, The Council is preparing an encore of the this is the last time I can speak to you from earlier presentation on computer basics. That Retirement from the Athe Chair. It has been an honor to be the program was so well received that there was a law practice...... 1 Chair of the Section Council whose members are standing room only audience. The workshop Asset allocation ...... 2 dedicated to the needs and interests of senior also advanced mentoring, another Council goal, lawyers. by having younger attorneys mentor senior at- How and why you should I can look back at the Council’s accomplish- torneys in developing computer skills. join the Senior Lawyers ments in the past year and forward to its plans for The Council also has plans to present a pro- Discussion Group...... 3 the coming year. During 2014-2015, the Council gram on the different aspects of making the focused attention on developing programs that transition from practice to retirement. Careful Book review— addressed senior lawyers’ special needs and in- planning can make the transition more efficient The Forgotten 500 ...... 5 terests. The activities included a workshop on and less painful. computer basics and a seminar on making a In departing, I wish the Council all the best for Medicare primer, part II. . . 6 smooth transition from full time practice to re- the coming year. ■ tirement. Technology for seniors. . . . 8
Retirement from the law practice By Curtis R. Tobin II
pon graduation from the University of other associates with a view toward expanding Illinois College of Law in 1965, I became the practice and structuring a succession plan. Uassociated with a senior practitioner who All of our associates were great people and had a general practice with a heavy emphasis we maintain a good relationship with them to on probate and real estate work. The office was this day. However, all of them left the practice located in Belvidere, Illinois, the county seat of after a short time to pursue other interests. One Boone County. went into law-enforcement, one became a col- Over the next 49 years, our office make up lege professor, and my son, who had become a and practice group expanded into other areas of partner, ran successfully for Circuit Judge in 2010. If you're getting law, but always maintained the heavy emphasis So much for the succession plan! this newsletter on estate planning, estate administration and Then I began to look seriously at succession real estate. planning, as I wished to cut back my time and en- by postal mail The law practice was a busy one, taking from ergy from the full-time practice of law. and would 50 to 60 hours a week. We also raised a family I found that the so-called “part-time” practice prefer electronic and participated in a number of community or- really did not work very well for me. ganizations, not unlike many other practitioners. Cutting back hours in the office or taking ad- delivery, just Seven years into my practice, I began an asso- ditional vacations in this age of phones, faxes send an e-mail to ciation with a new partner that was an excellent and e-mail doesn’t allow one to get very far away Ann Boucher at one and lasted 42 years. Continued on page 2 During our partnership, we hired a number of [email protected] Senior Lawyers | June 2015, Vol. 6, No. 3
Retirement from the law practice
Continued from page 1 from the client problems or the office. whom I had a valued professional relation- We also agreed to follow the professional In a small firm, clients typically go to law- ship. responsibility standards with regard to client yers and not to the firm, and in my situation The agreement has to be fair to both par- notification. that made retirement even more difficult. ties, but must allow the firm to reasonably Five months into retirement, I can report Over five decades, my clients and their fami- grow and compensate its attorneys. that I am exceedingly happy with the deci- lies became good friends. I wasn’t replace- Valuing goodwill is the most difficult, par- sion. I have much more time with my wife, able; it was just “inconvenient.” ticularly in a small practice where clients tend children, grandchildren and friends, as well My partner and I hired John Olmstead to go to individual lawyers and not the law as for community activities. of Olmstead & Associates (who has worked firm. I do get into the office every couple of with the Bar Association extensively) and Valuation models such as average net in- weeks to consult with a law firm partner and we examined, with his counsel, a number of come over the last five years times 1.5 were a longtime client. concepts and possibilities for our then two- discussed, but all seemed too high for the Otherwise, I find my days are filled with person firm. law firm to manage. family activities, friends and community and Among the options was the possibility Ultimately, the buyout agreement val- charitable organizations. of adding additional attorneys with areas of ued the buyout at a percentage of accounts I have tried not to get into any long-term expertise that the firm did not have, together receivable and work in process on the firm’s non-legal projects for the first six months. I with decreasing practice time that existing books as of the date of my retirement. am sure my wife and I will identify some proj- partners would be required to devote to the This payment is to be made on a monthly ects as we go along. business. basis, with the entire balance, if not sooner I was extremely fortunate to practice law We looked extensively at the possibility paid, payable in five years. at a time when law was practiced “in the of mergers with larger firms, even engaged I also agreed as “of counsel” not to practice grand manner,” and when lawyers respected in substantial negotiations, but nothing law unless requested as a consultant by the each other as practicing attorneys and judg- seemed to be a good fit. firm. I have an hourly stipend if the firm so es on the bench. Ultimately, we hired another young law- requests. I am excited for the next portion of my life yer with great experience and credentials, The firm agreed to continue to pay mal- when I hope I can continue to give back to with a view toward that lawyer becoming a practice insurance, bar association and con- the community, and continue to pursue cur- full partner in one year, upon my planned re- tinuing education costs on my behalf. rent and new activities with wife, family and tirement date. We also agreed that the firm could con- community. ■ Next came the difficulty of negotiating an tinue to use my name as long as it met pro- agreement with my long time partner with fessional responsibility standards.
Asset allocation By John J. Horeled, Esq.
key to successful investing is an ap- John Bogle, who oversaw the tremendous years. Therefore, an investor should keep as- propriate asset allocation. Upon re- growth of the Vanguard Index Funds. His sets equal to three years’ expenses in short Atirement, a proper asset allocation is formula is that you should own your age in term bonds and the balance in equities. even more important. bonds, i.e. if you are 65 years old, you should The second approach is advocated by Wil- There are some standard formulas and I own 65% in bonds and 35% in equities. liam Bernstein, who believes that you should will review three of them. The third formula is a variation of the take the money off the table. The number The first is the classical standard endow- age-based allocation, which is promoted needed to spend in your retirement should ment formula, which is 60% in equities and by Charles Schwab. His formula is that you be placed in safe short term investments 40% in bonds. It was hoped that an average should own bonds at your age less 20%, i.e. if with the balance in other investments. This return of 10% could be achieved with an you are 65 years old, you should own 45% in protects you from a bear market early in re- annual payout of 5%. Current endowment bonds and 55% in equities. tirement. See Money Magazine, September investing is more sophisticated and, in any There are also three alternative methods 2012. event, a 5% payout may be too aggressive. that I would like to present. The final approach states that the old This percentage strategy can be simply du- The first one is what I call the Davis The- well-known formulas are wrong and that al- plicated by purchasing the Vanguard Bal- ory, which is promoted by Shelby Davis of locations should take into account a severe anced Index Fund. the Davis Funds family. He believes that most market correction early in retirement that The second formula was developed by negative market cycles last at most three will be hard to recover from. Michael Kites 2 June 2015, Vol. 6, No. 3 | Senior Lawyers believes that your equity portion should be point. Read the magazine articles that I have small at retirement and grow over time be- referred to and any information that you have Senior Lawyers cause, as you age, you actually have less risk received from your financial planner, if you because of your life expectancy. He calls his use one. Vanguard and T. Rowe Price have a approach counter intuitive from traditional wealth of information. If you use a financial perspectives. He is concerned that a period planner, ask about the American Funds as a Learn more about this section at of poor returns in the beginning of retire- core component. Remember, you are no lon-
3 Senior Lawyers | June 2015, Vol. 6, No. 3
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4 June 2015, Vol. 6, No. 3 | Senior Lawyers
Book review: The Forgotten 500 By Gary T. Rafool, Peoria, Illinois, [email protected]
015 marks the 70th anniversary of the Great Britain and the United States consid- August of 1944. end of World War II (WW I I) in Europe ered Mihailovich a Communist, with stronger The book also discusses the personal lives 2during the spring of 1945, and in the ties to Russia than Tito. Therefore, the Allies, of several of the downed airmen, and their Pacific during the late summer of 1945. perhaps to placate Tito, turned their backs on individual take on their lives among the Ser- There have been many books, movies and Mihailovich and the Serbian people in Yugo- bian people. television series over these 70 years depict- slavia during WW II. One such airman profiled in the book was ing certain phases or aspects of WW II. A few As a side note, it is said that Winston Lieutenant Robert Wilson of Peoria. He was that immediately come to mind include the Churchill admitted sometime after the war the navigator on one of the B-17s mentioned recent movie titled “Unbreakable,” and older that this shunning of Mihailovich was one of earlier. After 20 missions, his plane went accounts in “The Greatest Generation,” “Pat- the biggest blunders of WW II. Also after the down in Yugoslavia in July of 1944. It had a ton,” “Midway,” “The Longest Day,” “Saving war, Mihailovich was tried and executed by crew of 10, who all parachuted to safety into Private Ryan,” “Band Of Brothers,” “The Pacific” followers of Tito. Of course this ethnic strife the hands of these Serbian peasants. and Ken Burns’ “The War.” among the factions in Yugoslavia started I had the pleasure of meeting Mr. Wilson Perhaps for political reasons, a story that years before WW II and continued years after a few years ago at a friend’s home during was only recently told involved the daring WW II, culminating somewhat in The Dayton a discussion of this book. He had nothing and almost impossible rescue of over 500 Al- Accords of 1995. but praise for the Serbs who took him in, lied airmen behind German lines in Yugosla- In spite of the political situation in 1942, fed, clothed and protected him during the via in 1944. Mihailovich and the Serbian people took months before his rescue. He brought some I have chosen The Forgotten 500 by Greg- these downed airmen into their homes, all of the clothes he was given by them, and he ory A. Freeman, as this Newsletter’s book re- behind German lines. At great risk to all of autographed a picture of himself in the book view. This book was published in 2007, and their lives, they fed and clothed them, shar- for me. ■ it is available in both paperback (280 or so ing what little they had, including goat’s milk pages) and electronic format. and bread baked with hay to make it more It deals with the Allies’ constant bombing filling. They did not understand each others’ of German oil refineries in Romania, starting language, and they could only communicate in 1942. B-17s (because of their better radar) by hand gestures and facial expressions. were used as lead planes, followed by B-24s In my opinion, the most amazing story in these bombing missions. in this book is that these airmen and these These Romanian refineries were produc- Serbian peasants built an airfield by hand, ing a million tons of oil per month for the without adequate tools or equipment. This Did you know? German military. This was approximately had to be done almost under the Germans’ one-third of the petroleum products being noses, who were occupying land extremely used in the German war effort. close to the mountainous site chosen for this The strategy was to strike these refiner- crude airfield. ies at low altitude for better accuracy. That, As if all of this was not enough, the airfield Every article obviously, resulted in heavy damage to and had to be long and flat enough to accom- published by the ISBA in losses of these bombers. modate C-47s, which were to be used in this the last 15 years is available While Italy, after its liberation, was the mission to rescue over 500 airmen, primarily primary home base for these bombers, the at night without any lights on the field or on on the ISBA’s Web site! damage inflicted on those not lost complete- the airplanes. ly to anti-aircraft guns and German aircraft The brain behind this impossible mission was too great for many airplanes to make it was George Vujnovich, who was the United to their base. States control agent with the Office of Stra- Want to order a copy Many of the heavily damaged planes tegic Services (OSS), predecessor to our pres- of any article?* Just call or e-mail were forced to ditch over German held Yu- ent CIA. It was actually his wife, Mirjana, who goslavia, with survivors bailing out over the first heard about these stranded airmen at a Jean Fenski at 217-525-1760 homes of poor Serbian peasants. party in Washington, D. C. in May of 1944. or [email protected] The leader of the Serbs in Yugoslavia at Vujnovich (who just recently died) worked that time was Draza Mihailovich, who was from his OSS office in Italy on this rescue mis- also a leader of one of the underground forc- sion, which was known as “Operation Hal- *Sorry, if you’re a licensed Illinois es fighting the Germans there. He was also yard.” The mission was secretly coordinated lawyer you must be an ISBA member to order. an arch rival and enemy of Josip Tito, who through Milhailovich and his Serbian guer- led other Yugoslavians fighting the Germans. rillas. The rescue planes first started flying in
5 Senior Lawyers | June 2015, Vol. 6, No. 3
Medicare primer, part II By Janet Morgan
Part 1 of this article appeared in the Febru- year to year due to higher medical costs, but months prior to the month of, and up to ary 2015 issue of the Senior Lawyers newsletter. not just because you grew older. Another three months after, your 25th month of dis- Part 1 discussed Medicare basics, Part A and methodology is “no age” rating which means ability. Part B. This article addresses supplemental in- everyone over age 65 pays the same amount, surance, Part D and Part C. regardless of their age. How do I enroll in a Part D plan? In Illinois, disabled people who are under You have several options. You may enroll What is a Medigap policy or 65 and on Medicare have the same open with a licensed insurance agent or a state supplement? enrollment rights as people 65 and older. SHIP counselor; you can sign up yourself on hese two terms are used interchange- When a disabled person turns 65, they have Medicare.gov; enroll over the phone with the ably. A Medicare supplement is a spe- an additional six-month open enrollment pe- insurance company of your choice; or you Tcific type of health insurance available riod due to age. They may purchase a policy can call 1-800-MEDICARE. to people who have Medicare Parts A & B. It based on age 65, which may significantly re- It is very important to choose a plan is private insurance designed to pay the ma- duce their premium. based on the medicines you take, not just jor benefit gaps in Medicare, like deductibles the cost of the monthly premium. The best and co-payments. Where can I get unbiased help in way to pick a plan is to ask your agent or SHIP There are 10 standardized supplements selecting a Medigap plan? counselor to do a plan comparison. Also, that are sold through licensed insurance You can contact your local Area Agency you do not have to have a drug plan from agents based on the benefits they cover. on Aging, your state’s local SHIP (Senior the same company that insures you for your When you decide which benefits you want, Health Insurance Program) office, or call 1 supplement. it would be wise to shop around for the best 800- MEDICARE for advice. premium price because a Plan F means the What costs will I have with a same thing, with every insurance company. What is Part D? Medicare Part D plan? It’s a real apples to apples comparison. Medicare Part D is prescription drug insur- Most plans have a monthly premium; ance offered by private insurance companies some plans have yearly deductibles (as When should I sign up for a supple- that are approved by Medicare. Part D plans high as $320 in 2015). Usually you will have ment? are necessary because the Medigap policies co-pays for your medicine depending on If you enroll in a supplement plan within that are currently sold are not allowed to cov- whether your medicines are in the com- the first 6 months of your Medicare Part B er prescription medicines. If you purchased a pany’s formulary and if they are generic or enrollment, the insurance company cannot supplement prior to 2006 that includes drug brand name. turn you down, regardless of your health coverage, you may keep that policy. You may incur additional costs for your status, claims experience, or medical condi- prescriptions if the cost of your medicine ex- tion. You are considered “guaranteed issue” Who is eligible for a Medicare Part D ceeds the initial coverage limit (donut hole). although there could be a waiting period prescription plan? In 2015, you will pay 45% for brand name for pre-existing conditions. All standardized Anyone who has Medicare Part A and/ and 65% for generics once you and your in- plans must also be guaranteed renewable, or Medicare Part B can enroll in a prescrip- surance company have paid $2,960 for your meaning the policy cannot be cancelled by tion drug plan, but there are rules regarding medicine. the insurer because of frequency of claims, when you may apply. deteriorating health or increased age. Why should I enroll in a Part D plan? When may I apply for Medicare I don’t take any medicine . What can I expect to pay for a Part D? Individuals who are eligible for Part D but supplement? If you are new to Medicare, you have do not enroll when they first become eligible Your premium depends on your gender, a seven-month window to enroll: three will incur a penalty if they enroll in a Part D city in which you live and, of course, which months prior to your 65th birthday—the plan anytime in the future. The late enroll- of the 10 benefit plans you choose. There are month of your birthday—and up to three ment penalty is 1% of the annual national also high deductible and Medicare Select op- months after your birthday. Your prescription base premium for every month you did not tions where the insurer requires you to use coverage would be effective the month of have coverage but were eligible. For exam- specific hospitals and doctors. your birthday or the month after you enroll. ple, if you delayed enrollment seven months Insurance companies use different meth- If you miss this initial enrollment opportu- and the average premium was $32.00, you ods to determine premium prices. Most com- nity, you may apply during the open enroll- would have to pay an additional $2.24. The panies sell supplements that will increase in ment period: October 15th - December 7th of $2.24 would be added on to your monthly price as you get older. Another method is “is- each year. Your coverage would begin Janu- premium for as long as you keep a drug in- sue age” where your premium will always be ary 1st of the new year. surance plan. based on your age at the time you purchased If you are awarded Medicare due to dis- The exception to this is an individual who the plan. Your costs may still increase from ability, you can join a Part D plan three has creditable prescription coverage (at least
6 June 2015, Vol. 6, No. 3 | Senior Lawyers
Medicare primer, part II
Continued from page 8 as good as Medicare’s standard coverage) You may also apply or change plans dur- pays a fixed amount to the Advantage plan through an employer, union, VA, TRICARE, ing the open enrollment period: October for your coverage. Some plans have their etc. 15th through December 7th. Your coverage own monthly premiums, deductibles, and would begin on January 1st of the new year. co-pays for prescription medicine and co- What is Part C, Medicare If you are awarded Medicare due to dis- pays or co-insurance for medical services Advantage? ability, you can join a Medicare Advantage provided. A Medicare Advantage plan is a different plan three months prior to the month of and You might incur additional costs for your way to have hospitalization, medical ben- up to three months after your 25th month of prescriptions if the cost of your medicine ex- efits, and drug coverage all in the same in- disability. ceeds the initial coverage limit (donut hole). surance policy. Although you still have Medi- In 2015, you will pay 45% for brand name care, it is the private insurance company that How do I enroll in a Medicare and 65% for generics once you and your in- is covering you, not Medicare. These compa- Advantage plan (Part C)? surance company have paid $2,960 for your nies must follow rules set by Medicare; how- You have several options. You may enroll medicine. ever, they can charge different out-of-pocket with a licensed insurance agent or a state costs and have their own rules regarding SHIP counselor; you can sign up yourself on Where can I get unbiased help networks of providers, and referrals. Medicare.gov; enroll over the phone with in selecting a Medicare Part D or the insurance company of your choice; or Medicare Advantage plan? Who is eligible to enroll in a part C you can call 1 800-MEDICARE. You can contact your local Area Agency plan? Because these plans include drug cov- on Aging, your state’s local SHIP (Senior You must have Part A and Part B of Medi- erage, it is very important to select a plan Health Insurance Program) office, or call 1 care and you must live within the plan’s ser- based on your prescription needs as well as 800- MEDICARE for advice. ■ vice area. Generally, you cannot have End your medical needs and not just the cost of ______Stage Renal Disease. There are some excep- the monthly premium. This article was prepared by Janet Morgan. tions. It is also imperative that you are aware of Janet became a SHIP (Senior Health Insurance which preferred pharmacies, network hospi- Program) counselor in 2006 and currently works When may I apply for Part C? tals and network providers you are allowed for the Boone County Council on Aging as the In- to use. formation and Assistance Supervisor. When you first become eligible for Medi- The information contained in this article is a care, you can join three months before your compilation acquired from three major sources; th What costs will I have with a 65 birthday—the month of your birthday— Medicare Advantage Plan? the Senior Health Insurance Program Counselor’s and up to three months after your birthday. Manual 2014 edition, the Medicare & You 2015 Your effective date would be the month of You will still have to pay for your Medi- Handbook, and the 2013-2014 Medicare Supple- ment Premium Comparison Guide. your birthday or the month after you enroll. care Part B premiums because Medicare
Technology terms for senior lawyers THINKING ABOUT RETIRING? Continued from page 8 Do you want to earn something for the face. No keyboards and minimum of connec- practice you built? tors.
Whois—Allows you to learn who is regis- Consider merging your law practice and retiring at your tered owner of a Web site. (http://www.bet- own pace with a full service law firm in the Chicago terwhois.com) suburbs. All sizes of practices considered, however, Wi-Fi—Short for wireless fidelity; de- corporate, estate planning, and real estate practices are scribes wireless network connection within most easily merged and expanded. 30-100 feet of transmitter. Please email or call us confidentially at Wi-Max—Cellular phone-like, roaming, wireless network connections up to 1 Gbps [email protected] or 630-386-2395 (gigabit per second) with a range up to 31 to start a dialogue. miles. ■
7 Senior Lawyers Non-Profit Org. Illinois Bar Center U.S. POSTAGE Springfield, Illinois 62701-1779 PAID Springfield, Ill. June 2015 Permit No. 820 Vol. 6 No. 3
Technology terms for senior lawyers By The Honorable Edward J. Schoenbaum
App—Originally software applications hard drive to expedite a return visit and to frequently give away their username, pass- for smartphones and tablets but now appli- recommend products to purchase based on word, social security number, bank account cations that run on desktops, laptops or mo- prior buying history. or credit card account numbers or fall victim bile devices. to a larger scale fraud. Firewall—An impediment that blocks in- Bluetooth—Technology standard that vasion of a computer by outside forces. Hard- Pharming—Phishing on steroids. uses radio waves to allow electronic devices ware or software firewalls are available. to connect and share information over dis- Social Media—Creating relationships tances of 30 feet. Interface—How you interact with or use with people with similar personal or profes- or access a machine. sional interests. Chrome—Google’s Web browser (http:// www.google.com/chrome) and operat- Java—A high-level programming lan- Spam—Unsolicited commercial e-mail ing system that runs its laptop computers guage used in developing Web sites. messages trying to sell you something you (http://www.google.com/chromebook). do not need or want. Electronic junk mail. Operating System—Software that runs Cloud—Material you wish to access is a desktop, laptop or tablet computer or a Spyware—Malicious software designed stored at a location other than your own smartphone. to take partial control of a computer’s op- computer so you can access it remotely, usu- eration. Subverts operation for third party’s ally through the Internet. Every Web page Phishing—Sending fraudulent e-mail benefit. lives in the Cloud. disguised as messages from banks or on- line merchants. Those who take the bait are Tablet—One-piece device designed to Cookies—Hold small pieces of informa- fooled into providing important informa- be used via an intuitive touchscreen inter- tion that a Web site places on a visiting user’s tion about their online accounts. Victims Continued on page 7