ESTATE PLANNING FOR YOUNG PEOPLE

 Age 18 is referred to as the "age of majority" in the United States and much of the rest of the world.  This means that on your 18th birthday you receive by operation of law the right to:

1. Open a bank account under your own name and social security number only;

2. Obtain a credit card;

3. Vote;

4. Purchase real estate or stock in your own name only;

5. Open a 401(k), IRA or Roth IRA;

6. Sign contracts enforceable against you;

7. Sign a Revocable Living Trust;

8 Sign Powers of Attorney for Finances & Health

9. Sign Living Wills;

10. Sign Transfer on Death Deeds;

11. Sign a Last Will & Testament; 

12. To marry without parental consent; and

13. To file a Tax Return in your own name and social security number.

That is a lot of rights and responsibilities to get all in one day.    

Practicing in the areas of Bankruptcy and Estate Planning, I see young people who get into trouble with debt early in their lives, which could have been avoided through education about finances and credit. 

I see young people who get into trouble with the IRS and the Washington State Department of Revenue because they didn't understand the Business & Occupation Tax or deductions.

I see young people who don't know how to balance a checkbook and don't look at their bank statements.

I see young people who don't vote.

I see young people who don't file tax returns (or who file them improperly and don't keep records).

I see young people who don't begin modestly saving and investing for retirement.

I see young people who don't know that they have the right to have a Separate Property Revocable Living Trust, to keep property separate during marriage (and after divorce, if applicable), and to receive separate gifts and inheritance during marriage.  I see young people who don't know that because their Trust becomes irrevocable if they die, their children are protected from disinheritance if a spouse remarries.

I see young people who don't know that they have the right to name health care agents who have the right to access (or those who don't have the right to access) their health care information and talk to their health care providers (Universities often require this, which is the impetus for many young people's parents contacting me).

I see young people who don't know that they have the right to name an agent to sign checks and contracts for them if they are not able to do so for themselves thereby negating the need for a Guardianship Proceeding (Understanding this right also gives young people a better understanding of how to act as their parents' agent and care for them when the time comes).

I see young people who don't know that they have the right to authorize a health care agent to pull the plug on life support, remove a feeding tube and remove IV fluid or not (and that their parent's have the same right and that they may be called upon to carry out their parent's wishes).

I see young people who don't know that they have the right to avoid probate on any real estate in Washington with a Transfer on Death Deed with a step up in cost basis to the date of death value (and that their parents have the same right which can save them thousands of dollars, 6 months or more of Estate administration time, and avoid public disclosure to the Court).

I see young people who don't know that a Will requires a Court and the associated cost, time, and public disclosure or that Probate does not require a Will.

I see young people who know they can marry, but don't understand the value of talking about financial issues in advance and the value of being organized to reduce anxiety and increase a sense of being in control of one's life.  I see young people who don't know they can keep gifts and inheritance separate during marriage, but that if commingling with community property occurs that separate character may be lost.

Conclusion.  The point is that because I have seen all of these things, I feel an obligation to help reduce the difficulties that can occur as a result.  Young people who have some financial and legal sophistication early in their lives are less likely to get into debt problems, more likely to save for retirement, more likely to vote, more likely to correctly file tax returns, more likely to do their own estate planning, more likely to take better care of their parents when needed and to administer their Estate when needed without disputes, and are more likely to encourage their own kids to obtain the same kind of financial and legal sophistication that benefitted them in their lives.

Peace and harmony through generations of families can be promoted by having a common basis of knowledge and values.  Communicating with each other about these issues is intended to promote strength and resilience in families so that if a family member is in a coma or dies, the rest of the family doesn't argue and fight, but instead experiences increased gratitude, compassion, and kindness.  All of us face sickness and death.  It is how we respond individually and collectively that defines who we are.  Is who we are who we want to be?  If not, there are things we can do together to learn and grow.

UNMARRIED PARTIES BUYING A HOME TOGETHER

 When unmarried people buy a home together several issue tend to arise.

1. How to Take Title at Purchase. Most married people take title as Joint Tenants with Right of Survivorship so that if one spouse dies, the surviving spouse owns the home.  Unmarried people can do the same, or they can hold title in the default way for unmarried people, which is Tenants in Common.  That means each can pass their undivided one half interest to their heirs (which may or may not be their Partner).  Unmarried people may also choose to take title in some other percentage other than 50/50 such as 60/40 to account for unequal contributions to mortgage payments and/or down payment.

2.  Changing Title After Purchase.  Parties can record a Quitclaim Deed to themselves or their Trusts or LLC's or others after purchase.  Typically, no Real Estate Excise Tax is due for doing so because no payments are being made.  **WARNING** Changes in title do not affect Promissory Note obligations.  Doing so requires a refinance or sale.  This can create a risk if the relationship ends and one party signs and records a Quitclaim Deed to the other.  If both Parties signed the Promissory Note, then a Default occurring years in the future will be entered on the credit reports of both Parties even if one Party hasn't owned the property for a decade or more.

2. How to Address Unequal Down Payment Contributions.  A Promissory Note and Deed of Trust can be signed in favor of one party who contributes more down payment than the other.  Interest is permitted, but not required.  The balance needs to be paid if the property is refinanced or sold.  Then the net proceeds are divided according to the percentage ownership of those on title to the property.

3. Agreements Regarding the Purchase.  Agreements regarding property purchases are subordinate to other aspects of the transaction such as how title is taken, promissory notes, and deeds of trust.  Such agreements also typically include language regarding rights if one party passes away or if the relationship ends.  Because of this, I have found that by far the best and most complete way to address the issues is within the context of estate planning for both parties.  

4. Estate Planning & Home Buying.  Buying a home and estate planning go hand in glove and are frequently paired.  One reason is that a Transfer on Death Deed for the home is part of the Estate Plan.  Another part is the Powers of Attorney for Health and Living Wills, which are especially important for unmarried Parties who otherwise may not be able to talk with doctors about each other's care.

Conclusion.  By doing an Estate Plan for each Party and understanding what public records cannot be altered by private agreements, the Parties can get a much richer understanding of what they are doing and hopefully avoid pitfalls and disputes.

BLINK By Malcolm Gladwell (2005)

BLINK By Malcolm Gladwell (2005)

Adventure of Discovery of the Minds of Others.  Reading Malcolm Gladwell is to be in the presence of a great mind, a great heart, and a great spirit.  He goes beyond the intellectual stimulation for which he is so rightly famous, and shows real sensitivity to the human condition.  I feel that Malcolm Gladwell cares about what I do with the insights he has given me.  The insights themselves are a treat.  The caring on top of that is surprising and delightful.

I would feel presumptuous in the extreme to write a book review of any of  Malcom Gladwell's works.  I would feel wholly inadequate to do a book report on any of his works.  Instead, my attempt is to make notes on my experience of the adventure of discovery of the minds of others.  In so doing, it is my hope to honor Mr. Gladwell by showing just how much his work made me think, feel, and get more in touch with my humanity.

Mr. Gladwell wanted to be a lawyer.  He would have been an excellent lawyer (but it would have been a waste in the same way Eddie Redmayne becoming a lawyer would have been a waste).  Understanding the view from the other side of the table is vital to lawyering.  Getting into the mind of the opposing party, and opposing counsel, and understanding how they think and perceive the situation is an invaluable skill.  Mr. Gladwell celebrates that skill.  He is a master at play with that skill.  It is beautiful to watch.

                                                                                                                                                                       

Snap Judgements & the Adaptive Unconscious.  Slowing down facial expressions and speech into thin slices of time, fractions of seconds, can reveal evidence of the activity of the unconscious mind.  The unconscious mind is like a peculiar kind of locked door, always making implicit associations like sounds coming from behind the locked door.  We cannot access what is behind the door directly.  However, some evidence of what is going on behind the door does appear in our faces and behavior if we know how to look.  Studies show that the face is not just exhibiting what the brain is feeling, moving the face changes how we feel and respond as well.  Put a pencil between your teeth forcing you to smile and pay attention to what changes in your mood and reactions.

The activity of the unconscious mind can be influenced by experiences.  For example, scientists have developed an Implicit Association Test (IAT) which measures how long it takes to arrange certain words.  Watching the Olympics, for example, is enough to improve positive black word association times.  

I am a 6'5" tall white man.  I have been enjoying positive implicit associations my whole life.  As a middle aged person, I am balding, wear glasses, and have a bit of a gut - which all carry negative implicit associations.  The sweet bird of youth has flown away and left a bit of poop.

I am afraid to let the psychologist with the 95% accuracy of predicting divorce within 15 years by carefully observing one hour of conversation about issues that arise in marriage such as pets. 

Thin slices of time reveal contempt (the leading indicator), criticism (generally favored by women), stonewalling (generally favored by men) & defensiveness. 

I couldn't help but wonder if videotaping and slowing down interviews with suspected criminals and terrorists would reveal much more than torture.  Coupled with measuring brain waves that indicate recognition of a photograph (or non-recognition) could reveal more than a person may be willing to tell under any circumstances.

A touching story for me was of female classical musicians who were hired for orchestras when they auditioned behind a curtain, but not hired when they weren't.  One woman had been a substitute in the Orchestra.  They already knew her, but they didn't know how good she really was until they heard her without seeing her.  

This is the premise of the television show, the Voice.  Judges are turned with their backs to the singer and they listen before turning around.  The surprises are wonderful.

A downside of rapid cognition is "stickiness," which is the resistance to change of first impressions under the weight of overwhelming evidence to the contrary.  For example, Warren G. Harding was known for being strikingly good looking.  He looked "Presidential."  He is regarded as one of the worst U.S. Presidents.  Sometimes rapidly assessing and adapting to people and surroundings unconsciously is useful.  Sometimes we need to Think and not just Blink.

Rule of Agreement.  There is a structure for spontanaity.  In improvisation, assuming everything the other person says is true and never contradicting it can produce hilarious situations.  

In Law School, professors tell students to "not fight the hypothetical."  Just assume it's all true and move forward.  I practiced some DUI defense as a legal intern before I was licensed.  The rule was to not just assume that every word of a cops affidavit was true, but to also lay the foundation regarding the training and excellence of the officer in including everything in the affidavit.  Never contradict a police affidavit.  One lawyer explained that there was "no cheese down that hole."  Once wedded to the affidavit, work with any inconsistencies or omissions to get the results the Defendant wants.

To Understand the Paradigm is to Understand its Weaknesses.  Behavior flows from a mental model or worldview.  The stronger you get in some areas, the more vulnerabilities arise in others. For example, superior military technology, information, numbers and lethality creates opportunities that can be exploited.  Improvised Explosive Devices (IED's) (including airplanes) and communication by motorcycle courier are examples of how smaller forces can punch high above their weight class.  The scenario is old, old, old.  Native American fighting techniques were used successfully against formal British musket volleys in open fields.  Guerilla tactics were used against the United States in Vietnam and Afghanistan.  David used a sling and stone to kill Goliath, which was the equivalent of using a .45 against someone with a knife.

If You Want to Know What Someone Likes; Don't Ask Them.  People have a tendency toward the familiar.  When asked if they like something they haven't seen prior, most people simply say no.  Overcoming this initial hesitation can lead to surprising leaps of growth and unexpectedly wonderful experiences.

For example, when I first heard of a show about the manufacture of methamphetamine, I thought there is no way I am watching that.  It sounds horrible.  My wife's family has members who are meth addicts.  Her uncle used to make meth in her grandmother's garage in Las Vegas.  However, from the first episode of Breaking Bad, Vince Gilligan and Brian Cranston (among others) immersed me in a compelling world of a mid-life crisis from multiple points of view.

Expert Opinion v. Public Opinion.  Like a Venn Diagram, critics and viewers assessments sometimes overlap - and sometimes do not.  Failure to get beyond initial reactions can limit growth.  If you trust a critic or a friend possibility emerges.  For example, when I heard the premise of Schitt's Creek I thought there is no way I am watching that, it sounds stupid.  However, a pediatrician friend for whom I have enormous respect said I should give it a chance.  I did.  I was surprised to find myself caring about characters I didn't think it was possible to care about.  So, Blink, then Think, and give yourself time to see if reevaluating your first impression can lead somewhere unexpectedly wonderful.

Heart Rate Awareness.  I didn't realize that I was a different person with a heart rate above 175 bpm.  If police had heart rate monitors that alarmed at 175 bpm mistakes could be reduced and lives saved.  That is why many jurisdictions have banned high speed chases.  Rodney King was beaten after a high speed chase.  Judgment is adversely affected with a heart rate above 175 bpm. 

We all make choices that lead to situations in which our Judgment is impaired.  Once we are in the situation with a sky high heart rate - it is too late.  We need to think about the lead up to the situation.  Lawyers are a bit like cops in that the presence of either raises the stakes.  Like ringing a bell, the appearance of a lawyer or a cop cannot be unrung.  We can make things worse just by being there.  Knowing this, we can tread lightly and first, do no harm.  We can manage our own heart rates because a high heart rate can be as contagious as Covid, leaping from person to person until the whole group is infected.

Conclusion.  Understanding that a first impression is just that, the first of subsequent impressions can lead us to give the proper weight and utility to those rapid cognitive which in turn contrasts with the situations in which the weight and utility of slower deliberative thought is preferred.  To everything there is a season.  Knowing what season it is and dressing appropriately makes all the difference.

Sometimes my wife will ask me why I am dressed warmly on a sunny day.  I tell her that I am dressing for my internal weather.  My mind is sometimes cold when my body is warm.  Better matching of my internal and external weather means people won't so readily see when I am a little out of step.  Thinking long and hard when it is not beneficial (and can even increase risk) and rapid cognition would be preferred is out of step.  As is not thinking long and hard about snap negative judgments that may be completely wrong and not at all consistent with reality.

THE TIPPING POINT By Malcolm Gladwell (2000)

Adventure of Discovery of the Minds of Others.  Reading Malcolm Gladwell is to be in the presence of a great mind, a great heart, and a great spirit.  He goes beyond the intellectual stimulation for which he is so rightly famous, and shows real sensitivity to the human condition.  I feel that Malcolm Gladwell cares about what I do with the insights he has given me.  The insights themselves are a treat.  The caring on top of that is surprising and delightful.

I would feel presumptuous in the extreme to write a book review of any of  Malcom Gladwell's works.  I would feel wholly inadequate to do a book report on any of his works.  Instead, my attempt is to make notes on my experience of the adventure of discovery of the minds of others.  In so doing, it is my hope to honor Mr. Gladwell by showing just how much his work made me think, feel, and get more in touch with my humanity.

Mr. Gladwell wanted to be a lawyer.  He would have been an excellent lawyer (but it would have been a waste in the same way Eddie Redmayne becoming a lawyer would have been a waste).  Understanding the view from the other side of the table is vital to lawyering.  Getting into the mind of the opposing party, and opposing counsel, and understanding how they think and perceive the situation is an invaluable skill.  Mr. Gladwell celebrates that skill.  He is a master at play with that skill.  It is beautiful to watch.

                                                                                                                                                                       

Finality.  When is there no turning back?  In sports there are referees and reviews and acceptance even if disagreement about the call remains.  Acceptance of incarceration of innocent people should never be accepted.  What is the tipping point for the finality of criminal judgments?  If preserving the systems means innocent people spend decades in prison or are executed, then that is not a system worth preserving.

Connectors. The Law of the Few.  The idea is that people who have a lot of acquaintances matter to to society.  That is why so many companies attempt to capitalize on "influencers."  My wife is an Elite Yelper.  I am her plus one at gatherings in which business attempt to make a favorable impression on people who are known for writing insightful Yelp reviews that people read and respond to.  

It is not a secret that most jobs are obtained via word of mouth.  What is interesting is the high percentage of job connections that come from acquaintances rather than even casual friends.

At North Central High School in Spokane, Washington a classmate I barely knew told me that he was moving on from his part-time job at The Outdoor Press (A fishing and hunting publication) and that I should apply.  I was the Editor of the school newspaper (because a friend was on the staff and he said he wanted me to join).  When I did the "interview" I learned that the Publisher was on the North Central News staff when he was in high school, had read what I had written and already decided to hire me.  I worked there for 4-1/2 years, all through college.

Also in high school, someone told me that she was auditioning for a play after school and that I should too.  I ended up getting the part and being in two more plays at Civic Theater after graduation.

At Gonzaga Law School, a third year student I did not know told me that he was ending a internship that was a great experience and that I should apply.  I did and it ended up being one of the richest most transformative experiences of Law School.

Someone told me that one of the best ways not to feel down was to volunteer.  I volunteered at Consumer Credit Counseling Center for 3 years and ended up working there before Law School.

I also volunteered for Americorps*VISTA (Volunteers in Service to America) in a Welfare to Work program during the Clinton Administration.  Americorps had an education award at the end that I used to get a Masters Degree in Organizational Leadership at Gonzaga.  As electives, I got to take UCC9 and Bankruptcy in the law school even though they were 2nd year law school courses.  The professor told me that grading was by number, so he wouldn't know who I was, and I could fail.  I studied really hard and got a B minus.  This was more meaningful to me than any A I ever received.

Mavens.  These are people who just have to share their knowledge.  Sharing is it's own reward.  I helped a couple of people file bankruptcies before law school.  I helped people with debt and taxes and getting a GED.  I would help people navigate their way through the legal and financial system for free if I could.  I could relate to Ashton Kutcher when he said that he makes the movies for free, what they are paying him for is promotion of the movies.

Sales Persons.  I am a terrible sales person.  When I travel around the Country I see an Edward Jones in every small town.  I can't help but think that if you made a graph of returns of the very low load S&P500 Index Fund and the proprietary Edward Jones Funds with their higher load included, you would likely see that most of the funds are not beating the S&P500 Index Fund by more than the additional load.  Yet, they are everywhere because of sales people.

Studies have shown that black males in particular are quoted higher prices than white males.  A successful sales person in Chicago is aware of this and deliberately quotes everyone the same starting price for a particular vehicle, and assumes that everyone has an equal chance of buying a vehicle.  The result is that about a third of sales come from referrals.  Unconscious bias is still there, but disciplined practices minimize interference.

As a lawyer, I struggle with what to charge (that is one reason why I like legal insurance so much).  I don't understand why some lawyers are so arrogant.  A lot of what lawyers do isn't worth very much.  Some of the most lucrative activities of lawyers (such as Personal Injury) are in areas in which other countries like Sweden that do not have a PI industry at all have just as safe a society as ours at a tiny fraction of the cost.

Context.  In the 1980's I saw a shopkeeper picking up crack vials with a snow shovel in Hell's Kitchen.  Human behavior can be dramatically impacted by environmental factors such as graffiti, panhandling, and subway fare jumping.  That is what New York City discovered before Rudy Giuliani slid into cartoonishness.

The Fundamental Attribution Error (FAE) is the mistake of thinking that character is unified and all encompassing rather than understanding that character is situation dependent to large degree.  Physical space and how it is organized matters.

Stickiness.  This refers to the lasting quality of messages.  Tone and resonance are elusive.  How do we make the meaning of what we say memorable?

Groups.  150 seems to be the number of working relationships that above which quality of connection deteriorates.  Successful companies have divided themselves up into such groups with Connectors between the groups such that some people are members of two groups.  Mental space and how it is organized matters.  It may even be the case that the human brain developed the way it did in response to the value of cooperation and living in relationship with others.

Almost Getting Mugged on the Subway.  Years ago in Manhattan a man threatened to rob me on the subway.  I was so scared that I didn't know what to do, so I pulled the red cord that was hanging above me.  It turns out that this was the brake and that someone has to come back to the car in order to release it so the train can move again.  I did not know that, but it turns out that was the express way of getting to the tipping point of preventing the robbery.  Most tipping points are much slower (like climate change for example).  If we understand concepts like the idea that after about $75,000 per year, the law of diminishing returns sets in with more income and eventually more income becomes negative for quality of life.  Why do we keep going with more of the same when the results are so much different between $55,000 and $75,000 and $75,000 and $95,000 for example?

Conclusion.  Change, like cruelty, often happens suddenly and all at once, but has a long buildup prior to happening.  Understanding the buildups better can make disappointing surprises less frequent.  We can also attempt to create the breaking points for change that are convenient and beneficial for society.  This seems especially important when allocating taxpayer funds.  There is a funding allocation under which the desired results will not occur, a point where they will, and a point after the tip when additional spending makes little difference.  Billions could be saved and society much improved by continually refining our understanding of the concept of the tipping points for various desired changes in society.

WHAT THE DOG SAW By Malcolm Gladwell (2009)

WHAT THE DOG SAW By Malcolm Gladwell (2009)

Adventure of Discovery of the Minds of Others.  Reading Malcolm Gladwell is to be in the presence of a great mind, a great heart, and a great spirit.  He goes beyond the intellectual stimulation for which he is so rightly famous, and shows real sensitivity to the human condition.  I feel that Malcolm Gladwell cares about what I do with the insights he has given me.  The insights themselves are a treat.  The caring on top of that is surprising and delightful.

I would feel presumptuous in the extreme to write a book review of any of  Malcom Gladwell's works.  I would feel wholly inadequate to do a book report on any of his works.  Instead, my attempt is to make notes on my experience of the adventure of discovery of the minds of others.  In so doing, it is my hope to honor Mr. Gladwell by showing just how much his work made me think, feel, and get more in touch with my humanity.

Mr. Gladwell wanted to be a lawyer.  He would have been an excellent lawyer (but it would have been a waste in the same way Eddie Redmayne becoming a lawyer would have been a waste).  Understanding the view from the other side of the table is vital to lawyering.  Getting into the mind of the opposing party, and opposing counsel, and understanding how they think and perceive the situation is an invaluable skill.  Mr. Gladwell celebrates that skill.  He is a master at play with that skill.  It is beautiful to watch.

                                                                                                                                                                       

Unforeseeable Events.  Unforeseeable events are unforeseeable in all of their particulars, but they can be counted on to occur and can form the basis of a successful investment strategy which pays off when others are suffering financially.  Risk can be well managed; risk can be successfully hedged.

My law practice is focused on death and debt.  Estate planning and administration is reliable (nothing is certain, but death and taxes).  Debt is cyclical and tends to be positively correlated with unemployment, divorce, and medical bills - in short, misery.  My revenue goes up when misery increases.  I have a natural tendency toward depression and anxiety which makes me inclined to bet that bad things will happen.  I don't know precisely when, but when they do (being Irish) my response will be that it could have been worse.

Try and think about what a dog sees in human behavior.  A friendly quick approach with eye contact with arms ready to hug tend to be comforting to people because it implies excitement to see a person you like or love.  A dog may see threat and aggression instead.  When someone rushes to help with voice raised, a dog could see more aggression.  The Dog Whisperer (Cesar Millan) has difficulty relating to people, which perhaps is part of why he relates so well to dogs.  The feelings of being isolated, alone, ignored, and misunderstood as an illegal immigrant.  That may have played some role in his sensitivity to dogs who, from their owners point of view, are misbehaving.  What Cesar sees is reaction to the humans in the dogs environment.  It is not the dog that is the issue.  It is the environment the dog is in and the way the dog is being treated that is the issue.  Cesar appears to intuitively understand that the issue is not him, it is the environment and the way he is being treated.  Dogs save Cesar, and Cesar saves dogs.

Image & Substance.  When I think of this issue, I think of Billy Crystal on SNL as Fernando:  It is better to look good than to feel good, and you look marvelous.  Reading Mr. Gladwell's exploration of hair coloring was interesting to me because I started going bald at 25 and have a gray speckled beard.  For me, shaving my head and face is what makes me look much younger and more vibrant, and alters my interactions with the world.  

For women, changing hair color to blond may have a similar effect.  The idea that feelings can start within and be reflected in appearance, but a change in appearance can also affect feelings is profound.  Humans are much more sensitive to our environments than we realize.  Studies of the effects of facial expressions on mood and the subconscious effects of priming show that our behavior can in fact be deeply and immediately affected by environment whether we are conscious of it or not.

Puzzle v. Mystery.  Puzzles require more information to solve; Mysteries require less information more carefully analyzed.  Knowing the difference matters.  In the modern world, we are drowning in information searching for the rare floating bit of thoughtful analysis to save us.  

The demise ENRON was brought about by the analysis of publicly available information filed with the SEC by the company itself.  ENRON used things called Mark to Market (MTM) accounting and Special Purpose Entities or Vehicles (SPE or SPV).  The IRS does not allow MTM which is booking revenue when a contract is signed even though the revenue may not appear for another decade.  ENRON's tax return was based on actual earnings, which were anemic.  Tax returns should be included with financial statements for investors to compare the two.  The incentives between financial statements and tax returns are different.  Once incentivizes high earnings, the other low earnings.

In Personal Injury Practice (PI), a common deposition tactic is to get the Plaintiff to talk at length regarding lost earnings from an injury and then follow up with a lengthy discussion of tax returns.  It puts the Plaintiff in a bind because they can't have high earnings for one purpose and low earnings for another. 

That is why loans should be based on tax returns.  President Trump routinely exaggerated values for loans, and low balled values for the IRS.  Different values for different purposes should not be allowed.

SPE's can be highly complex webs of interlocking companies created for the purpose of obtaining loans not reported as debt by the parent company (Off Book).  Assets are transferred to these companies and the value of the asset may be dramatically overstated allowing a much larger loan than should be warranted.

Currently, the parent company is not required to disclose these relationships that are clearly of a great deal of interest to the investing public (just ask the employees of ENRON who invested in their 401(k)'s with ENRON stock).  If the relationships had to be disclosed and their consequences explained, they would be more transparent, less complex, and easier to understand.

Currently, companies like Apple, Microsoft, Google & Facebook can use low corporate tax jurisdictions (like Ireland I am ashamed to say) to save tens of millions in taxes.  We have a WTO (World Trade Organization) for tariffs and trade.  We need a WTO (World Tax Organization) for corporate taxes.  Gross revenue should be taxed in the County where it is earned.  My law practice pays a 1.5% Business and Occupation (B&O) Tax on gross receipts quarterly regardless of profit. If Multinationals were paying half the rate they are paying now in Ireland to the United States Treasury we would all be better off (Ireland unfortunately would be slightly worse off; Sorry about that).

Power Law Distribution v. Bell Curve Distribution.  Knowing the difference between the two has major public policy implications.  For example, focusing resources on the 10% of people who are chronically homeless, chronic criminals, chronically arrested for DUI, or chronically truant is much cheaper and more effective than our current systems.  Giving chronically homeless people apartments, for example, is a tough sell politically because it appears to reward negative behavior, to encourage State dependence, and to encourage addiction, untreated mental illness, and malingering.   A single parent working two jobs is not likely to take kindly to paying for a chronically homeless person to get a free apartment (which may be nicer than they one in which the single parent lives).  When we do the psychological calculation of what seems right to us as human beings the result is the maintenance of homeless system we currently have.  However, if we do the math on the emergency room visits of the chronically homeless it tends to show that taxpayers are already paying much more than the cost of the apartment in medical bills.  

If we stop to think about homeless persons point of view, they have no choice but to go to the emergency room.  There are no alternatives and no disincentives, so they will just keep doing it.

Mammograms.  They save lives.  That is all I knew.  I didn't understand how they actually work. X-Rays are absorbed by fat and appear darker.  So, calcium deposits from slow growing cancer tumors are in high contrast and are easily spotted.  Dense non-fatty breast tissue appears lighter so that a tumor 3 times as large can be very difficult to see.  Even if seen, variations in shape, color, consistency and many other factors can make determining the life threatening from the benign very difficult. 

We have a family friend who is a Radiologist specializing in reading mammograms.  I have seen the chart filling her wall with the myriad shapes, dimensions, and measurements of various tumors with specifics about what to look for.

Understanding that regular fingertip examination is key (especially between the ages of 50 and 69) is vitally important to catching fast growing "interval tumors" which can develop in between annual mammograms.  I did not know that.  Knowing a little bit about what the mammogram can see and not see and what Radiologists can interpret accurately and consistently is important to manage expectations (and reduce malpractice litigation). 

As a lawyer in the most litigious society in the history of the world it may sound strange for me to say we need to decrease litigation, but we clearly and urgently need to do so for our financial and mental health as a society.

Plagiarism & Attribution.  Software can do this automatically now with links that can all be put online, so theoretically it should be less of an issue, but it's not.  Balancing public interest with private interest is what copyrights are supposed to do.  Like so much of law, the balance changes over time to reflect the relative values of society.  Currently, private profit dominates the public interest.  This is the same philosophy in which the shift of cleanup costs onto the taxpayers fuels private profit.  

Choke v. Panic.  Choking is thinking too much; Panic is thinking too little.  JFK, Jr. died in a plane crash because he felt level even when banking for the same reason that your drink doesn't spill when a commercial airliner banks.  He couldn't see lights on land, and he couldn't trust the way his body felt, he was limited to instrument flying which requires experience he did not have.  

FBI Profiling, Astrology, Psychics, Tarot, Palmistry, Futurism, Prophets, Market Forecasting & Predictions About the Future Generally.  Cold reading is a skill that has rules and techniques: Rainbow Ruse, Jacques Statements, Barnum Statement, Fuzzy Fat, Greener Cases, Diverted Question, Russian Doll, Sugar Lumps & Good Chance Guesses to name a few.

Complex Systems.  That complex systems will always have failures which can be minimized, but not eliminated such that someone or someones are not always to blame seems intuitive.

Early v. Late Bloomers.  It seems intuitive that early bloomers like Picasso are harder to understand and to relate to than producing beautiful works after decades of effort like Cezanne.

Structured Questioning is an Effective Job Interview Technique in a Field of Ineffective Techniques.

I have a B.A, M.A., & J.D. and spent years in school.  School is a largely solitary pursuit with feedback in the form of grades.  Work tends to be more collaborative with much less feedback about what is good performance and what is not.

In fact, in cases like ENRON, which fall into the Talent Fallacy, positive feedback flows from increasing levels of incompetence and criminality.  In well run organizations, the System is the star.  The System creates the environment which fosters the development of those who work within it.  ENRON hired MBA's from top schools, let them do whatever they wanted, and kept telling them how smart they were (See The Smartest Guys In The Room).  Studies show that treating intelligence as an immutable rather than malleable trait and praising intelligence itself rather than the work ethic of constantly changing mental skills based on learning from books and experience, deeper relationships, and a sharpening and refining of worldview and place in it tends to make people more likely to lie and to cheat.  That is exactly what happened at ENRON.  They forgot the simple, obvious, and basic truth that creating and cultivating value is what matters.  ENRON was the triumph of image over substance.

Overly Simplistic Pit Bull Ban.  Political reality is that laws need to have some intuitive popularity regardless of whether they are actually effective or not.  Actual dog bites involve dogs bred for violence, trained to be violent, or when violence is reinforced by the dog's owner.  25% are directly related to illegal dog fighting.  Often dogs have bitten someone prior, but there was no effort to neuter, muzzle, or use an invisible fence after the first bite.  It is not the breed (Pit Bulls can be gentle and make good therapy dogs); it's the owners.

Conclusion.  Everything looks different when perspective changes.  Being able to integrate and go back and forth among multiple points of view to create an overall impression that is greater than the sum of the perspectives is a particular gift of Mr. Gladwell.  To be able to spin ideas 360 degrees, to zoom in and out, slowing down and speeding up time, in a curated way that is meaningful, useful, and beautiful is a joy to witness.  Ideas don't have limited raw materials the way skyscrapers and cities do.  The raw materials of an idea are invented and infinite - as are the ideas themselves.  Mr. Gladwell fishes in the vastness of all that is, has been, and all that could be everywhere and reels in one beautiful gleaming catch after another.

DAVID & GOLIATH By Malcolm Gladwell (2013)

DAVID & GOLIATH By Malcolm Gladwell (2013)

Adventure of Discovery of the Minds of Others.  Reading Malcolm Gladwell is to be in the presence of a great mind, a great heart, and a great spirit.  He goes beyond the intellectual stimulation for which he is so rightly famous, and shows real sensitivity to the human condition.  I feel that Malcolm Gladwell cares about what I do with the insights he has given me.  The insights themselves are a treat.  The caring on top of that is surprising and delightful.

I would feel presumptuous in the extreme to write a book review of any of  Malcom Gladwell's works.  I would feel wholly inadequate to do a book report on any of his works.  Instead, my attempt is to make notes on my experience of the adventure of discovery of the minds of others.  In so doing, it is my hope to honor Mr. Gladwell by showing just how much his work made me think, feel, and get more in touch with my humanity.

Mr. Gladwell wanted to be a lawyer.  He would have been an excellent lawyer (but it would have been a waste in the same way Eddie Redmayne becoming a lawyer would have been a waste).  Understanding the view from the other side of the table is vital to lawyering.  Getting into the mind of the opposing party, and opposing counsel, and understanding how they think and perceive the situation is an invaluable skill.  Mr. Gladwell celebrates that skill.  He is a master at play with that skill.  It is beautiful to watch.

                                                                                                                                                                       

The Forum is the Fight.  Mr. Gladwell's retelling of the story of  the Biblical story David & Goliath is masterful.  I am 6'5" and wear glasses, so I could relate to the concept that being big and slow and not seeing well can be a disadvantage.  As a lawyer representing Debtor's in bankruptcy, I see that Creditors always want to talk on the phone.  If I never talk on the phone, but put everything in writing, then I win because that is where I have significant advantage.  David's sling was a deadly (and rightly feared) weapon.  By not meeting Goliath hand to hand with a sword he had the advantage.  The fight was over before it even started.

I kept thinking of a line from the song Me & Bobby Magee: "Freedom's just another word for nothing left to lose."  Hardship, disadvantage, and minority status creates an urgent need for (and continual practice of) certain survival skills not needed by the majority in relative ease.  I loved the Uncle Remus stories of Brer Rabbit, Brer Fox, and Brer Bear as a kid.  I found them speaking to me.  On my face you cannot see my African American and Native American ancestors, but they are with me always - deep and buried.  Mr. Gladwell's mother is Jamaican, so the display of his heritage of color is on the surface.  Mine is stealthy.  A story of cleverness used to overcome superior strength is deeply appealing.  I also grew up with the Tortoise and the Hare and slow and steady wins the race.  I had never heard the story of the Terrapin and the Deer in which the Terrapin's family place themselves along the race route with the Terrapin close to the finish line crossing before the Deer.  After all, the Terrapin says we all look the same to the Deer.  The Deer doesn't have to pay attention to what Terrapin look like and that is a weakness and disadvantage.

The Inverted U Curve.  Better understanding this concept as a society could have tremendous impacts.  I remember in school, some students would complain that we were never going to use what we were learning.  Instinctively I knew from a young age that we don't get to keep all of the knowledge we gain (we forget), and we don't know how and when the process of learning will be of use in the future (the world can be dangerous).  That sounds like the thinking of an underdog.  I never thought of it as a strength.  It may have been related to my parents getting a divorce when I was 6 years old (in 1974).  My father is an M.D.  My peers had financial security and social status that I did not have in a single parent household as a "latchkey kid."  I remember asking one of my classmates how he got into the house if he didn't have a key.  He said his mom was always there.  I said: "Don't you hate that?"  My mom was working 2 jobs as a nurse.  She told me she couldn't be there to watch me all the time.  She asked me to help keep what remained of our family together (my sister, aunt, and grandparents).  I did my best.  When I counsel debtors in bankruptcy sometimes they ask about hiding assets.  I hear my mother when I encourage them to think about the kind of society in which they want to live rather than thinking about whether and how much they can get away with.  Gandhi said: "Be the Change you want to see in the World."  There is a vast difference between living with meaning and purpose according to your values and breaking the law simply because you ascertain that you will probably get away with it.

Underdogs.  Underdogs instinctively get the concept of limits.  Underdogs know that the infinite growth model in economics is impossible to sustain.  If something cannot go on forever, it will stop.  We need more underdogs in Congress who understand that tax breaks work at first, then become neutral, and then become harmful.  Longer prison sentences work at first, then become neutral, and then become harmful. Smaller class sizes work at first, then become neutral, and then become harmful.  When millions of taxpayer dollars are being spent (and wasted and worse), understanding where the points of neutrality and harm are can not only save millions of dollars, but also alleviate suffering.

Part of my heritage is Northern Ireland Catholic, which is to say a religious minority in a part of Ireland that is part of the United Kingdom.  When I was growing up, kids would tell Polack jokes.  Later I heard the same jokes with Irish substituted for Polish.  I learned that Freud said the Irish were impervious to Psychoanalysis.  Being an underdog means that I will never be part of the Protestant Club, so I don't even have to try to belong.  I do not remember being taught that Rich, White, Male, Protestants have been in control since before the founding of America.  I just knew it; and I knew that I wasn't one of them.  I did not think of that as a strength until a few years ago when there was talk of a Muslim Registry.  My first thought was to put me on it.  I thought of Eugene V. Debbs and his powerful identification with underdogs.  In my mind, I will never be anything else.  It doesn't matter how much money I earn, or how much property I have - I am a permanent underdog.

Perhaps because I did not have a father, brothers, uncles, or male cousins, I did not grow up watching sports and learning the things men are supposed to do.  I grew up in a Matriarchy, in which my mother was the Head of Household and her Mother was the Head of Household.  Some of my classmates in high school thought I was gay.  My best friend from high school is gay.  He told me that I meet every gay stereotype including liking show tunes.  He said he hated show tunes.   I identified with people who are gay because I was treated like I was gay even though I am not.

Forgiveness is Strength.  I graduated from a Jesuit Law School where I read the Supreme Court Cases in which the Ku Klux Klan attempted to eradicate Catholic Education from America.  There was religious hate in America too, not just in Northern Ireland.  Hate is not a strength; Hate is a weakness.  

Conclusion.  Thank you to Mr. Gladwell for showing me that some of the most painful episodes of my life (and the suffering of my ancestors) can be sources of strength and advantage.  Thank you for showing me that the story of David & Goliath is a story of someone with a .45 going up against someone with a knife - no contest.  What we think of as weakness is strength; and what we think of as strength is weakness.

TALKING TO STRANGERS By Malcolm Gladwell (2019)

TALKING TO STRANGERS By Malcolm Gladwell (2019)

Adventure of Discovery of the Minds of Others.  Reading Malcolm Gladwell is to be in the presence of a great mind, a great heart, and a great spirit.  He goes beyond the intellectual stimulation for which he is so rightly famous, and shows real sensitivity to the human condition.  I feel that Malcolm Gladwell cares about what I do with the insights he has given me.  The insights themselves are a treat.  The caring on top of that is surprising and delightful.

I would feel presumptuous in the extreme to write a book review of any of  Malcom Gladwell's works.  I would feel wholly inadequate to do a book report on any of his works.  Instead, my attempt is to make notes on my experience of the adventure of discovery of the minds of others.  In so doing, it is my hope to honor Mr. Gladwell by showing just how much his work made me think, feel, and get more in touch with my humanity.

Mr. Gladwell wanted to be a lawyer.  He would have been an excellent lawyer (but it would have been a waste in the same way Eddie Redmayne becoming a lawyer would have been a waste).  Understanding the view from the other side of the table is vital to lawyering.  Getting into the mind of the opposing party, and opposing counsel, and understanding how they think and perceive the situation is an invaluable skill.  Mr. Gladwell celebrates that skill.  He is a master at play with that skill.  It is beautiful to watch.

                                                                                                                                                                       

In my law practice, MULVANEY LAW OFFICES, PLLC, I talk to strangers every day.  This book contained an abundance of things I need to know and to use better.  There is a reason they call it a "practice."  I constantly make changes to get closer to best practices in all situations at all times.  This is a tall order - for which I need all the help I can get.  Thank you for giving me a boost with this book.

     This work examines several different, but related, aspects of communication including:

1. Default to Truth
2. Transparency & Mismatch
3. Coupling
4. Getting People to Talk, and
5. Police Interactions.

Default to Truth.  Human beings generally trust each other, and assume that others are being honest unless and until a Tipping Point is reached.  Quite a lot of indicators can stack on each other until this point is reached.  This feature of human psychology and interactions is exploited by a minority of people such as Bernie Madoff.  Some people are the price we pay for having the Default to Truth lubricant for social interactions.  If everyone was suspicious and skeptical all the time, society could not function.  Everything would take many times the amount of time to complete.

For me, the striking thing about the analysis was the realization that the most skeptical people have trouble bonding with others and being believed.  If the Default to Truth could be turned on and off, then then the person who was temporarily skeptical could be their own messenger, but that is not usually what happens.  An overly suspicious and skeptical person needs to convince an influencer with the Default to Truth in abundance in order to get the message heard.  Apparently that is what happened with the whistleblower who kept sounding the alarm for 10 years before Bernie Madoff was arrested,

I thought of the mindset of the soldier and how important it is to be able to turn it on and off.  Soldiering requires considerable indoctrination.  Most people have difficulty following orders to kill strangers.  Soldiers who are not able to shut off their mindset can have difficulty decades later as civilian.  For example, my mother is a retired nurse from the VA Medical Center in Spokane.  Some WWII veterans refused to have Japanese nurses in their rooms.  They still harbored hate.  It did not serve their mental or physical health well as civilians and is no longer necessary, but they could not shut it off.

Knowing the proper and improper times to do and say things, and being able to change with those times is the key.  If you don't have the key yourself, and you know it, perhaps cultivating alliances with people whose mindset, words, and deeds change seemingly effortlessly as situations change would be of benefit.  If you remain fixed in a pit of your beliefs (especially those that are a default to skepticism, mistrust, and sometimes paranoia) being around people who are not so fixed can help show the way out of the pit.

Transparency & Mismatch.  I live in Bellevue, a suburb of Seattle, so the discussion of Amanda Knox who is from Seattle was close to home.  Innocent; she served years in an Italian prison with no physical evidence largely because her reactions did not match what was expected.  Actors, criminals, terrorists,  pedophiles, and grifters all need to be highly attuned to expected reactions and match them as precisely as possible in order to accomplish their goals.  Many people may not even be aware of the extent their reactions don't match expectations.

In law school, I did an internship in criminal defense.  Criminal defendants are usually acutely aware of Judges and Juries expectations regarding display of signs of contrition because if they are not, they tend to receive longer sentences. Most people are not so harshly punished for mismatch and are therefore less aware.

Knowing that certain people need to know how to deceive should presumably build faster to the Tipping Point, but it does not appear so.  Knowing that the accuracy of lie detection is generally low, even among professional investigators of crimes, should presumably reduce the speed to the Tipping Point,  but it does not appear so.  

Human beings are more than rational.  Reason is only part of us.  Another part is a Judge wanting to see a Defendant's face, eyes, and demeanor even though computer software can make about 25% better bail decisions than Judges - with less information.  The power of charm and the cult of personality appear to be effective because of human needs.  On some level we don't want justice so much as a feeling that we are rewarding the beautiful and the charming and punishing the ugly and the mismatched.

Knowing this hopefully produces some humility and less self-righteousness.

Coupling. Research shows the human behavior is influenced by environmental factors much more than is commonly though.  I proposed to my wife with the Golden Gate Bridge in the background.  More than 1,500 people have jumped from that bridge.  Nets were installed 80 years after construction of the bridge (even though nets erected during construction and then removed saved 19 lives).  Suicide and the Golden Gate Bridge are coupled.

A discussion of "Town Gas" (Coal Gas) in England is especially poignant.  Data shows that when natural gas replaced the high carbon monoxide town gas, suicides by other methods did not increase - even after head in the oven suicides dropped to zero.  Convenient means costs lives.  Suicide and Town Gas were coupled.

Understanding that criminal behavior can be coupled with subway graffiti was a major breakthrough for New York City.  Crime was in fact reduced by cleaning up the subway cars.  Crime was reduced by prosecuting subway fare beaters and panhandlers.  It is indeed the little things that matter, and the little interactions between people.  Clean, well lit, green spaces without graffiti, broken, windows, or litter reduces crime.  Manners and rituals of treating each other with respect (especially family) builds culture and resilience.  If we start with that strong foundation we can build on it.  If the foundation is cracked and weak, marked by crime and disrespect, what is built leans and topples.  By seeing connectedness (coupling) where it was previously invisible, and therefore not understood, we can do things like precipitously drop crime and suicide.

Getting People to Talk.  I am from Spokane, the place where the architects of the torture (Enhanced Interrogation Techniques) program following 911 were from.  I read some of the heavily redacted "Torture Memos" written by the Attorney General's Office.  I felt sick.  Nothing I was asked to to as an Associate Attorney remotely approached the horror of having to legally justify torture.

Studies show that the extreme stress of torture reduces the ability to recall information, and can distort that information sometimes by creating false memories.  Some torture victims simply confess to everything they can think of to build up their legacy and make the pain stop.  Family members and associates of those tortured tend to become violent enemies of the United States - making us less safe. See Black Sites.  So, torture doesn't work and the blowback from it harms us.  Why do we do it?

I couldn't help thinking that there must be better ways to get information from people.  Prescription drugs, alcohol, sex, brain scans showing recognition of images, reviewing video for millisecond unconscious facial expressions (thin-slicing), and psychological appeals related to family, friends, associates, religion, group membership or hometown challenging beliefs about what is being accomplished by terrorist acts before trying things like sleep, food, and water deprivation and isolation coupled with good cop/bad cop seem to be better options than "waterboarding" and "walling."

I had a nagging sensation that effectiveness really wasn't the point.  The point was power and humiliation.  Human beings with an urgent need for information aimed at saving lives from terrorist attack need to feel powerful because they feel out of control.  We need to humiliate the cause of that lack of control.  I may be naive, but perhaps knowing that can be the basis for a conversation about the situation that produces better results.  For example, poison gas was used on the Kurds in Iraq.  By showing video of those dead bodies in the hometown of a potential informant, the potential may tip into actual informing even if there was a previously close relationship that would have to be betrayed.

Police Interactions.  If ever there was a rich, timely, and historically deep subject to explore about America.  This is it.  I used to be in Toastmasters to improve public speaking.  One of my fellow Toastmasters was a black man who was a 20 year veteran of the Air Force (Fairchild Air Force Base is the largest employer in Spokane).  He told me that he would not drive in North Idaho at night.  This was during the time before Morris Dees sued the Aryan Nations of Hayden Lake, Idaho and bankrupted them.  What was sad and striking to me was that it wasn't just the Aryan Nations that was of concern to this man - he was also afraid of being pulled over by the police.  Here is a man who served his country honorably for decades who is concerned not just with racists, but with the police as well (who may or may not be racists, but are cause for concern nonetheless).

My own interactions with the police have been blessedly few.  One night in my office with windows looking out to the trees, mountains, and sky, I saw flashing police lights in the parking lot followed by the sounds of siren bursts, shouting, and throwing of things at my window.  I was perplexed and annoyed because I was trying to concentrate on work.  I ended up closing my blinds and turning out my lights and continuing to work.  I found out later that the police received a report of an armed intruder in my building, but they couldn't come up the elevator without a code and the couldn't open the doors from the stairwell without a key.  If I would have walked out to let them in across the path of an armed intruder I would have been in danger.  No armed intruder would remain with all that police racket going on so there was no chance of apprehending anyone.  Yet they persisted, and persisted.

What I realized is that I was harboring resentment for the traffic cameras that I believe are unconstitutional.  The State Legislature had to enact a Statute creating a presumption that the owner of the car is the driver in order to get around the unconstitutionality of an officer not seeing the infraction and writing an affidavit.  Instead, they have video and a presumption created to cure a constitutional defect.  My mother and I each received a ticket from one of these cameras.

My wife received a ticked for 5 mph over the speed limit going down a hill to the freeway onramp in downtown Bellevue.  Insurance premiums did not change for the camera tickets, but they did increase by $25 for the officer given speeding ticket and never went down.  That is $300 a year, every year, for decades.  I believed I was justified in not responding to the ridiculous and dangerous ignorant rudeness of the police.  I am a white man who is 6'5" tall and weighs over 300 pounds.  Not everyone has that luxury.

The power to tax is the power to destroy.  Traffic tickets are a tax and should be treated as such subject to all constitutional constraints of equal protection and due process.

Conclusion.  Awareness of these 5 concepts, defaulting to truth, mismatch of behavior and expectations, coupling, getting the truth, and the dynamics of power differential interactions can lead to not just more effective communication, but to improvements in the justice of outcomes.  By improving the fairness of our interactions we can increase peace and harmony.  If some of the fear and misunderstanding we bring into our contacts with others can be replaced by some understanding and compassion, the world becomes just a little bit better - one stranger at a time.