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No, it is illegal for an employer to fire an employee based on their political or religious beliefs. Under federal law, Title VII of the Civil Rights Act of 1964 prohibits discrimination on the basis of religion, and the First Amendment to the U.S. Constitution provides protections for freedom of speech and religion.
Similarly, some states and localities have laws that protect employees from discrimination based on their political beliefs. For example, California prohibits employers from discriminating against employees or job applicants based on their political affiliations or activities.
However, it is important to note that the protections afforded to employees may depend on the nature of their employment. For example, employees who work for private employers generally have fewer protections than those who work for the government. Additionally, employees who work in certain industries, such as religious organizations, may be subject to different rules and protections.
If an employee believes that they have been terminated because of their political or religious beliefs, they may be able to pursue legal action. They should consult with an experienced employment attorney who can help them understand their legal rights and options and guide them through the legal process. An attorney can help the employee gather evidence, file a claim with the appropriate agency, and pursue legal action to protect their rights and obtain compensation for their losses.
No, an employer cannot legally fire an employee for refusing to do something illegal. In fact, federal and state laws protect employees from retaliation for reporting or refusing to participate in illegal activity. This protection is often referred to as “whistleblower protection.”
Under federal law, the Whistleblower Protection Act (WPA) protects federal employees who report illegal activity from retaliation by their employer. Additionally, the Occupational Safety and Health Administration (OSHA) provides protections for employees who report safety violations or refuse to engage in hazardous activity.
Many states also have their own whistleblower protection laws that provide additional protections for employees who report illegal activity or refuse to participate in such activity.
If an employer retaliates against an employee for refusing to engage in illegal activity, the employee may have legal recourse. They may be able to file a claim with the Equal Employment Opportunity Commission (EEOC) or their state’s equivalent agency, or they may be able to file a wrongful termination lawsuit.
It is important for employees to understand their legal rights and protections and to speak with an experienced employment attorney if they believe that they have been retaliated against for refusing to participate in illegal activity. An attorney can help evaluate the strength of the case, gather evidence, and pursue legal action to protect the employee’s rights and obtain compensation for their losses.
As an at-will employee, an employer can generally terminate your employment at any time, for any reason, or for no reason at all. This means that an employer can terminate an employee without giving a reason for the termination, as long as the reason is not discriminatory or retaliatory.
However, there are some exceptions to the at-will employment rule. For example, if an employee has an employment contract that specifies that they can only be terminated for cause, the employer would be required to provide a reason for the termination. Additionally, if an employee is terminated in violation of state or federal law, such as for engaging in protected activity or in violation of anti-discrimination laws, the employer would be required to provide a reason for the termination.
In general, if an employer terminates an employee without giving a reason, it may be difficult for the employee to challenge the termination, especially if they are an at-will employee. However, if an employee believes that their termination was discriminatory, retaliatory, or in violation of state or federal law, they may be able to pursue legal action and should speak with an experienced employment attorney who can advise them on their legal rights and options.
Proving that you were wrongfully terminated can be a challenging and complex process, but there are several key factors that can help support your claim. Some of the evidence that can be used to prove wrongful termination may include:
It is important to consult with an experienced employment attorney who can help you evaluate the strength of your case and guide you through the legal process. A knowledgeable attorney can help you gather evidence and build a strong case that can demonstrate that you were wrongfully terminated.
The statute of limitations for filing a wrongful termination claim can vary depending on the state and the type of claim being filed. A statute of limitations is a legal deadline for filing a claim, and once the deadline has passed, the claim cannot be pursued.
In Arkansas, the statute of limitations for filing a claim under state law for wrongful termination is 180 days. This means that an employee who has been wrongfully terminated must file their claim with the Arkansas Department of Labor within 180 days of their termination.
If the employee wants to file a claim under federal law, such as the Civil Rights Act or the Americans with Disabilities Act, the statute of limitations is 300 days. This means that the employee must file their claim with the Equal Employment Opportunity Commission (EEOC) within 300 days of their termination.
It is important to note that the statute of limitations is strictly enforced, and if an employee fails to file their claim within the deadline, they may be barred from pursuing their claim. It is therefore crucial for employees who believe they have been wrongfully terminated to speak with an employment attorney as soon as possible to ensure that their claim is filed within the applicable statute of limitations.
An experienced attorney can help an employee understand the applicable statute of limitations, assist in preparing and filing the claim, and work to obtain the maximum compensation available for their losses.
Employees who have been wrongfully terminated may be entitled to recover damages in a wrongful termination lawsuit. The types of damages that are available to an employee will depend on the specific circumstances of their case. Some of the damages that may be recoverable in a wrongful termination lawsuit include:
It is important to note that the damages available in a wrongful termination lawsuit may vary depending on the specific circumstances of the case. An experienced employment attorney can help you understand your legal rights and options, and can help you seek the maximum damages possible for your losses.
The Equal Employment Opportunity Commission (EEOC) is a federal agency responsible for enforcing federal laws that prohibit employment discrimination. The EEOC has several roles in discrimination cases, including:
The role of the EEOC may vary depending on the particular facts and circumstances of a discrimination case. A discrimination lawyer can help you understand how the EEOC may be involved in your particular case and advise you on the best course of action to take.
No, it is illegal for an employer to fire or retaliate against an employee for reporting discrimination or harassment. This protection applies to employees who make internal complaints to their employer, as well as to those who file complaints with government agencies or participate in investigations or lawsuits related to discrimination or harassment.
Here are some examples of the types of retaliation that are prohibited by law:
If you believe that you have been retaliated against for reporting discrimination or harassment, you may be able to file a complaint or lawsuit to seek relief. A discrimination lawyer can help you understand your legal rights, determine if you have a valid claim, and advise you on the best course of action to take.
The burden of proof in a discrimination case is the responsibility of the person bringing the claim to provide evidence to support their allegations of discrimination. The standard of proof required in a discrimination case is a preponderance of the evidence, which means that it is more likely than not that discrimination occurred.
Here’s how the burden of proof works in a discrimination case:
In some cases, the burden of proof may be slightly different depending on the particular laws and circumstances of the case. A discrimination lawyer can help you understand the burden of proof that applies in your particular case and advise you on the best course of action to take.
Yes, in many cases, you can sue for discrimination in both state and federal court. This is because many discrimination claims may be brought under both state and federal law, and the laws provide for different remedies and procedures that may be available in each court system.
Here are some examples of how you may be able to sue for discrimination in both state and federal court:
While it is generally possible to file a claim in both state and federal court, it is important to consider the advantages and disadvantages of each forum. A discrimination lawyer can help you understand the pros and cons of each option and determine the best course of action to take based on the facts and circumstances of your case.
If you believe that you have been a victim of discrimination, you have legal rights that protect you from such treatment. These rights may vary depending on the jurisdiction and the nature of the discrimination, but some common legal rights that you may have include:
If you believe that your legal rights have been violated, you may be able to file a complaint or lawsuit to seek relief. A discrimination lawyer can help you understand your legal rights, determine if you have a valid claim, and advise you on the best course of action to take.
If a parent who is paying child support in Arkansas moves to a different state, they are still required to make child support payments according to the terms of the original order. However, the laws regarding child support vary from state to state, and it may be necessary to modify the child support order to ensure that it complies with the laws of the new state.
If a modification is necessary, the parent who has moved will need to file a motion with the court in the state where the child support order was issued. The court will review the motion and determine whether a modification is necessary based on the laws of the new state.
It’s important to note that if a parent moves to a different state, they may also be subject to the child support laws of that state. This means that they may be required to make additional payments or follow different rules regarding child support.
If a parent who is paying child support in Arkansas moves to a different state, it’s important to work with an experienced family law attorney to navigate the complex process of child support across state lines. An attorney can help ensure that the child support order is in compliance with the laws of both states and that the parent’s rights are protected throughout the process.
In Arkansas, child support typically lasts until the child reaches the age of 18 or graduates from high school, whichever comes later. However, there are some exceptions to this rule.
If the child has a disability, child support may continue beyond the age of 18. In these cases, the court will typically review the child’s needs and the parent’s ability to pay in order to determine an appropriate amount of child support.
If the child is still in high school beyond the age of 18, child support may continue until the child graduates or turns 19, whichever comes first.
It’s important to note that child support obligations in Arkansas do not automatically end when the child turns 18 or graduates from high school. A parent must file a motion with the court to terminate child support obligations once the child is no longer eligible for support under the law.
It’s also worth noting that child support can be modified in Arkansas if there is a significant change in circumstances, such as a change in income, the needs of the child, or the parent’s financial situation. It’s important for both parents to stay up to date on their child support obligations and work together to ensure that the child’s needs are being met. Working with an experienced family law attorney can help ensure that child support obligations are fair and in the best interests of the child.
Child support payments are a legal obligation in Arkansas, and failing to make these payments can result in a number of consequences for the parent who is behind on payments. Here are some of the most common consequences for nonpayment of child support in Arkansas:
It’s important for both parents to take child support obligations seriously and ensure that payments are made on time and in full. If a parent is having difficulty making child support payments, it may be possible to modify the order to make the payments more manageable. It’s important to work with an experienced family law attorney to ensure that your rights and obligations are protected throughout the child support process.
If you believe that your child is in danger while in the other parent’s custody, it’s important to take action to protect your child. Here are some steps you can take:
If you believe that your child is in danger, it’s important to take action quickly to protect your child’s safety and well-being. Work with a qualified family law attorney to determine the best course of action and ensure that your child’s best interests are protected.
It’s worth noting that custody arrangements can be highly specific to the needs and circumstances of each family. It’s important to work with a qualified family law attorney to develop a custody arrangement that is in the best interests of the child and works for both parents.
Child custody agreements are designed to be long-term arrangements that are in the best interests of the child. However, as circumstances change over time, it may be necessary to modify or change the custody agreement.
In order to modify a custody agreement, the parent seeking the modification will typically need to demonstrate a significant change in circumstances that justifies the modification. For example, if a parent who was previously unemployed gets a new job in a different city, that might be considered a significant change in circumstances that justifies modifying the custody agreement.
In some cases, parents may be able to agree to a modification of the custody agreement outside of court. This can be done through a process known as mediation, in which a neutral third party helps the parents reach an agreement. If the parents are able to agree on a modification, they can submit it to the court for approval.
If the parents are not able to agree on a modification, the parent seeking the modification will need to file a motion with the court and demonstrate that there has been a significant change in circumstances that justifies the modification. The court will then consider the motion and make a determination as to whether the modification is in the best interests of the child.
It’s worth noting that modifying a custody agreement can be a complex and time-consuming process. It’s important to work with an experienced family law attorney who can guide you through the process and help you protect your child’s best interests.
In many jurisdictions, judges are required to consider the child’s preference when making a custody decision. However, the weight given to the child’s preference varies depending on a number of factors, such as the child’s age and maturity, the reasons for the child’s preference, and the overall circumstances of the case.
In general, the older and more mature a child is, the more weight their preference will be given. For example, a 16-year-old’s preference is likely to be given more weight than a 6-year-old’s preference. However, even in cases where a child is quite young, their preference may still be taken into account.
When considering a child’s preference, judges will also look at the reasons behind the child’s preference. For example, if a child prefers to live with one parent because that parent allows them to stay up late and eat junk food, the judge is unlikely to give much weight to that preference. However, if a child expresses a preference to live with a parent because they feel safer and more loved in that parent’s home, the judge is more likely to take that preference into account.
Ultimately, a child’s preference is just one of many factors that are considered when making a custody decision. Judges will also consider factors such as each parent’s ability to provide for the child’s physical and emotional needs, any history of abuse or neglect, and the child’s relationships with extended family members. It’s important to work with an experienced family law attorney who can help you navigate the complex custody process and ensure that your child’s best interests are protected.
When it comes to child custody, it’s often best if parents can work together to create a custody agreement that is in the best interests of their child. Here are some tips for how parents can collaborate to create a custody agreement that works for both of them:
By working together and keeping the child’s best interests at the forefront of their minds, parents can create a custody agreement that works for everyone involved.
In Arkansas, both parents have a legal obligation to support their children, and this obligation continues after a divorce. Child support is calculated based on the Arkansas Family Support Chart, which takes into account the income of both parents and the number of children to be supported.
You can use our Arkansas Child Support Calculator
The court may also consider other factors, such as the cost of health insurance, child care, and education. Once the court has determined the amount of child support to be paid, it will issue an order requiring the non-custodial parent to make regular payments to the custodial parent.
The non-custodial parent may also be required to provide health insurance for the child, and to share in the cost of any uncovered medical expenses. In addition, the court may order the non-custodial parent to contribute to the child’s educational expenses, such as tuition, books, and supplies.
If the non-custodial parent fails to make the required child support payments, the custodial parent may seek enforcement of the court order, which can result in penalties such as wage garnishment, seizure of assets, or even jail time.
It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to child support and who can advise you on the most effective strategies for achieving a fair and reasonable child support arrangement. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
In Arkansas, child custody is determined based on the best interests of the child. The court will consider a variety of factors, such as:
There are two types of custody in Arkansas: legal custody and physical custody. Legal custody refers to the right to make important decisions regarding the child’s upbringing, such as decisions regarding education, medical care, and religion. Physical custody refers to the right to have the child live with a particular parent.
In most cases, the court will encourage both parents to share in the legal and physical custody of the child, provided that this is in the child’s best interests. However, in cases where there is evidence of abuse or neglect, the court may award sole custody to one parent.
If the parties are unable to agree on a custody arrangement, the court will make a determination based on the evidence presented at a hearing. It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to child custody and who can advise you on the most effective strategies for achieving a custody arrangement that is in the best interests of your child. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
To file for divorce in Arkansas, you must first complete and file a “Complaint for Divorce” with the Circuit Court in the county where either you or your spouse live.
The Complaint for Divorce must include information such as the names and addresses of both spouses, the date and location of the marriage, and the grounds for divorce. You must also pay a filing fee at the time of filing, which varies depending on the county.
Once the Complaint for Divorce has been filed, you must serve a copy of the paperwork on your spouse, either by certified mail or in person. Your spouse then has 30 days to file a response with the court.
After the response has been filed, or if your spouse does not file a response within the designated time frame, the court will schedule a hearing to address any contested issues, such as property division, alimony, and child custody.
It’s important to note that divorce proceedings can be complex, and it may be beneficial to consult with an experienced Arkansas divorce attorney who can guide you through the process and ensure that your rights and interests are protected.
Technically, you can file for divorce in Arkansas without the assistance of an attorney, but it is generally not recommended. The divorce process can be complex, and without the guidance of an experienced attorney, you run the risk of making costly mistakes or overlooking important legal issues.
An attorney can help you understand your rights and obligations, as well as the laws and procedures applicable to your case. An attorney can also assist you in navigating the court system, filing the necessary paperwork, and representing you in court hearings.
While hiring an attorney may involve additional costs, it can ultimately save you time, money, and stress in the long run. An experienced attorney can help you achieve the best possible outcome for your case, whether through negotiation, mediation, or court proceedings.
If you are considering filing for divorce in Arkansas, it’s important to consult with an experienced Arkansas divorce attorney who can advise you on the specific laws and procedures applicable to your case and help you achieve the best possible outcome for your situation.
The length of time it takes to obtain a divorce in Arkansas can vary depending on a number of factors, including the complexity of the case, the willingness of the parties to cooperate, and the court’s caseload. However, the minimum waiting period for a divorce in Arkansas is 30 days from the date the Complaint for Divorce is filed.
Assuming there are no contested issues that require a hearing, a divorce in Arkansas can be granted after the 30-day waiting period has expired. So, an uncontested divorce with no issues can be finished in 6-8 weeks. However, if there are contested issues that require a hearing, the process can take longer, and it may be 9-12 months at a minium before the divorce is finalized.
It’s important to note that while a divorce can be finalized after the 30-day waiting period, the terms of the divorce, such as property division, alimony, and child custody, may take longer to resolve. In some cases, parties may need to work through these issues with the help of their attorneys or a mediator before a final agreement can be reached.
Overall, the length of time it takes to obtain a divorce in Arkansas can vary widely depending on the specific circumstances of each case. It’s important to work with an experienced Arkansas divorce attorney who can guide you through the process and help you achieve the best possible outcome for your case.
Arkansas recognizes both fault and no-fault grounds for divorce. No-fault divorce requires the parties to show that they have lived separately and apart from each other for at least 18 consecutive months and that there is no reasonable expectation of reconciliation. This is known as a “separation divorce.”
However, Arkansas also recognizes several fault-based grounds for divorce, including:
It’s important to note that fault-based divorce can be more complex and expensive than a no-fault divorce, as it may require additional evidence and court hearings to prove the grounds for divorce.
If you are considering filing for divorce in Arkansas, it’s important to consult with an experienced Arkansas divorce attorney who can advise you on the specific grounds for divorce applicable to your case and help you achieve the best possible outcome for your situation.
In Arkansas, property division in a divorce is governed by the principle of equitable distribution, which means that the court will divide the marital property in a manner that is fair and reasonable, taking into account a variety of factors, such as:
Marital property in Arkansas is defined as all property acquired by either spouse during the course of the marriage, with some exceptions for property that was acquired by gift or inheritance, or that was owned by one spouse prior to the marriage. Non-marital property is generally not subject to division in a divorce.
If the parties are unable to agree on the terms of property division, the court will make a determination based on the evidence presented at a hearing. The court has broad discretion in making these decisions, and the outcome will depend on the specific facts of each case.
It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to property division and who can advise you on the most effective strategies for achieving a fair outcome. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
If you and your spouse cannot agree on the terms of your divorce in Arkansas, the case will likely proceed to a contested hearing before a judge. At the hearing, each party will have the opportunity to present evidence and arguments in support of their position on issues such as property division, alimony, and child custody.
The judge will make a decision on the disputed issues based on the evidence presented, taking into account factors such as the best interests of any children involved, the financial resources of each party, and any other relevant considerations.
If you are unable to reach an agreement with your spouse, it’s important to work with an experienced Arkansas divorce attorney who can help you prepare for the contested hearing and present a strong case on your behalf. An attorney can also help you understand the potential risks and benefits of going to court and can advise you on the most effective strategies for achieving your goals.
It’s important to note that contested divorces can be time-consuming, stressful, and expensive, and it may be in your best interest to try to reach a settlement through negotiation or mediation before proceeding to a contested hearing. However, in some cases, going to court may be necessary to protect your rights and achieve a fair outcome.
The cost of filing for divorce in Arkansas varies depending on the county and the complexity of the case. In most counties, the filing fee for a Complaint for Divorce is between $165 and $185. This fee must be paid at the time of filing and is non-refundable.
In addition to the filing fee, there may be other costs associated with a divorce, such as fees for serving the Complaint for Divorce on your spouse, fees for obtaining copies of court documents, and fees for hiring experts, such as appraisers or attorney ad litems.
If you hire an attorney to represent you in your divorce, there will be additional legal fees that will vary depending on the complexity of the case and the amount of time and resources that your attorney invests in your case. It is important to discuss legal fees with your attorney at the outset of your case, and to obtain a written fee agreement that outlines the terms of your representation.
Overall, the cost of filing for divorce in Arkansas can vary widely depending on the specific circumstances of each case. If you have concerns about the costs of a divorce, it’s important to discuss your options with an experienced Arkansas divorce attorney who can advise you on the costs and help you achieve the best possible outcome for your case
Retirement and pension benefits are considered marital property in Arkansas, and as such, they are subject to equitable distribution in a divorce. The court will consider a variety of factors, such as the length of the marriage and the contributions of each spouse to the accumulation of the retirement or pension benefits, in determining the division of these assets.
The most common way to divide retirement and pension benefits is through a Qualified Domestic Relations Order (QDRO), which is a court order that directs the plan administrator to divide the benefits between the parties. The QDRO must be prepared and approved by the court, and it must comply with the terms of the retirement or pension plan.
Once the QDRO has been approved, the plan administrator will distribute the benefits in accordance with the terms of the order. The non-employee spouse may be entitled to a percentage of the employee spouse’s benefits, or the benefits may be divided into separate accounts for each spouse.
It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to retirement and pension benefits and who can advise you on the most effective strategies for achieving a fair and reasonable division of these assets. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
In Arkansas, alimony, also known as spousal support, may be awarded to one spouse based on the financial needs of that spouse and the ability of the other spouse to pay. The court will consider a variety of factors when making a determination on alimony, including:
In some cases, the court may award temporary alimony during the pendency of the divorce proceedings, to help support the spouse who is in need of financial assistance. The court may also order permanent or rehabilitative alimony, depending on the specific circumstances of the case.
It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to alimony and who can advise you on the most effective strategies for achieving a fair and reasonable alimony arrangement. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
In Arkansas, both parents have a legal obligation to support their children, and this obligation continues after a divorce. Child support is calculated based on the Arkansas Family Support Chart, which takes into account the income of both parents and the number of children to be supported.
You can use our Arkansas Child Support Calculator
The court may also consider other factors, such as the cost of health insurance, child care, and education. Once the court has determined the amount of child support to be paid, it will issue an order requiring the non-custodial parent to make regular payments to the custodial parent.
The non-custodial parent may also be required to provide health insurance for the child, and to share in the cost of any uncovered medical expenses. In addition, the court may order the non-custodial parent to contribute to the child’s educational expenses, such as tuition, books, and supplies.
If the non-custodial parent fails to make the required child support payments, the custodial parent may seek enforcement of the court order, which can result in penalties such as wage garnishment, seizure of assets, or even jail time.
It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to child support and who can advise you on the most effective strategies for achieving a fair and reasonable child support arrangement. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
In Arkansas, child custody is determined based on the best interests of the child. The court will consider a variety of factors, such as:
There are two types of custody in Arkansas: legal custody and physical custody. Legal custody refers to the right to make important decisions regarding the child’s upbringing, such as decisions regarding education, medical care, and religion. Physical custody refers to the right to have the child live with a particular parent.
In most cases, the court will encourage both parents to share in the legal and physical custody of the child, provided that this is in the child’s best interests. However, in cases where there is evidence of abuse or neglect, the court may award sole custody to one parent.
If the parties are unable to agree on a custody arrangement, the court will make a determination based on the evidence presented at a hearing. It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to child custody and who can advise you on the most effective strategies for achieving a custody arrangement that is in the best interests of your child. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
In Arkansas, property division in a divorce is governed by the principle of equitable distribution, which means that the court will divide the marital property in a manner that is fair and reasonable, taking into account a variety of factors, such as:
Marital property in Arkansas is defined as all property acquired by either spouse during the course of the marriage, with some exceptions for property that was acquired by gift or inheritance, or that was owned by one spouse prior to the marriage. Non-marital property is generally not subject to division in a divorce.
If the parties are unable to agree on the terms of property division, the court will make a determination based on the evidence presented at a hearing. The court has broad discretion in making these decisions, and the outcome will depend on the specific facts of each case.
It’s important to work with an experienced Arkansas divorce attorney who can help you understand your rights and obligations with respect to property division and who can advise you on the most effective strategies for achieving a fair outcome. An attorney can also help you negotiate with your spouse and reach a settlement that is acceptable to both parties, which can be less costly and less stressful than going to court.
Yes, you can change your name during a divorce in Arkansas.
The process for changing your name during a divorce is relatively simple. Once your divorce has been finalized and the judge has signed your Decree of Divorce, you can take a certified copy of the Decree to the Arkansas Department of Health’s Office of Vital Records to request a new birth certificate with your new name.
You will also need to update your name with other agencies, such as the Social Security Administration, the Department of Motor Vehicles, and your bank and credit card companies. It’s important to note that changing your name can be a time-consuming and potentially expensive process, and you should carefully consider the implications before making the decision to change your name.
If you are considering changing your name during a divorce in Arkansas, it’s important to discuss your options with an experienced Arkansas divorce attorney who can advise you on the legal requirements and potential risks associated with a name change, and help you achieve the best possible outcome for your case.
Mediation is a process in which a neutral third party, called a mediator, assists the parties in reaching a mutually acceptable agreement on the terms of their divorce. Mediation can be a less costly and less adversarial alternative to litigating a divorce in court.
In Arkansas, mediation is often used in divorce cases to help the parties resolve issues such as property division, alimony, and child custody. The mediator is trained to facilitate communication between the parties, identify areas of agreement and disagreement, and help the parties develop creative solutions to reach a settlement that works for both parties.
Mediation is not mandatory in Arkansas, but it may be required by the court in some cases. For example, the court may order mediation if the parties are unable to reach an agreement on the terms of the divorce or if there are contested issues that need to be resolved before the divorce can be finalized.
It’s important to note that mediation is not appropriate for all cases, particularly in cases involving domestic violence or other forms of abuse. In addition, while mediation can be a useful tool for resolving disputes, it is not always successful, and parties may still need to pursue litigation in court to resolve their issues.
If you are considering divorce in Arkansas, it’s important to discuss your options with an experienced Arkansas divorce attorney who can advise you on the benefits and risks of mediation and help you achieve the best possible outcome for your case.
In Arkansas, an annulment is a legal process that declares a marriage to be invalid from the beginning as if it never occurred. An annulment is different from a divorce, which is the legal process of ending a valid marriage.
There are several grounds for annulment in Arkansas, including:
It’s important to note that annulment is only available in limited circumstances, and it may not be an option for everyone seeking to end a marriage. In addition, annulment proceedings can be complex and may require additional evidence and court hearings to prove the grounds for annulment.
If you are considering an annulment in Arkansas, it’s important to consult with an experienced Arkansas family law attorney who can advise you on the specific grounds for annulment applicable to your case and help you achieve the best possible outcome for your situation.
To file for divorce in Arkansas, either you or your spouse must have been a resident of the state for at least 60 days prior to filing the Complaint for Divorce. This means that you or your spouse must have physically lived in Arkansas for a continuous 60-day period immediately preceding the filing of the Complaint for Divorce.
If you or your spouse are a member of the armed forces and are stationed in Arkansas, you may be considered a resident for the purposes of filing for divorce, even if you have not resided in the state for the full 60-day period.
It’s important to note that meeting the residency requirement is just one of the many factors to consider when filing for divorce in Arkansas. Other issues such as property division, alimony, child custody, and child support may also come into play, and it’s important to consult with an experienced Arkansas divorce attorney who can advise you on the specific laws and procedures applicable to your case.
Yes. At wh Law | We Help, we offer free bankruptcy consultations. There is no cost to you for the consultation and you don’t have to file bankruptcy. We will simply evaluate your financial situation and determine if bankruptcy is the right for you. During a consultation with our law firm, our attorneys will be able to determine which chapter is right for you. (Chapter 7, Chapter 9, Chapter 11, Chapter 12, or Chapter 13). We will also let you know what it will cost to file and how much the bankruptcy is going to cost. You can set up a free bankruptcy consultation by calling us at 501.891.6000 or you can fill out our consultation request.
For most people, it is a legal process designed to help those who cannot pay their bills receive a fresh financial start, either by discharging debt through Chapter 7, through which many debts are wiped clean through a process that lasts only a few months, or through the completion of a “repayment” plan under Chapter 13 of the Bankruptcy Code, which lasts between three (3) to five (5) years.
When a bankruptcy petition is filed the “automatic stay” provision of the Bankruptcy Code prohibits your creditors from contacting you to try to collect money from you – at least until your debts are sorted out according to law, which assigns different debts specific classifications of priority by which most creditors are bound. The automatic stay that stops all lawsuits, foreclosures, garnishments, and other collection activity from the moment a bankruptcy petition is filed.
The Bankruptcy Code permits any qualified person, partnership, corporation or business trust to file a case. If the debtor (person or entity who owes the money) files a petition to start the bankruptcy, it is a “voluntary” bankruptcy. If the creditors (people or entities to whom the money is owed) file a petition against a debtor to start the bankruptcy, it is an “involuntary bankruptcy.” When an involuntary case is filed, the debtor must contest the bankruptcy case within a certain time period to oppose the bankruptcy. Only married persons can file a joint petition; unmarried persons, corporations and partnerships must file separate cases. An individual with a business may not file a joint petition, but must instead file separate cases.
Your cost to file may vary depending on the Chapter you file under for bankruptcy relief, your financial circumstances, and the complexity of your case. The Cost with consist of fees to pay and the attorney’s fees for bankruptcy.
Currently, the filing fee charged by the court to file a Chapter 7 bankruptcy case is $335, whether you are filing individually or with your spouse. For an individual, the cost of the courses and credit reports are $57 total. This is the typical cost, although different cases can have different costs.
Under Chapter 13, the initial fee to file includes $310 that is paid to the Court to open the case, plus an additional $57 for the required classes and a comprehensive copy of your credit report.
Under certain circumstances, the Court may allow you to pay the filing fees ($335 or $310) in installments if you are unable to pay them all at once. Talk to us about whether an installment plan for filing fees is a good option for you. For additional information, please visit the U.S. bankruptcy court’s website.
Attorney’s Fees: Attorney’s fees are determined based on the individual circumstances of each Chapter 7 case and may vary depending on the existence of judgments, previous garnishment efforts, whether there are secured debts that the client wishes to reaffirm, etc. At wh Law | We Help, , our bankruptcy fees start at $500.00
wh Law | We Help, , services all customers:
Chapter 7 is the liquidation chapter of the Bankruptcy Code, and cases filed under Chapter 7 are commonly referred to as liquidation cases. This is what people commonly do when all their debt is gone when they complete the bankruptcy and they do not have to make payments. Chapter 7 requires a you to give up property which exceeds certain limits (“exemptions”) so the property can be sold or liquidated by the appointed Chapter 7 Trustee to pay creditors, and to keep property and avoid liquidation to pay unsecured creditors. In other words, “liquidation” is the sale of a debtor’s property for the purpose of distributing the sales proceeds to the debtor’s creditors. Potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.
Also known as a payment plan form of bankruptcy, Chapter 13 is the debt repayment chapter. In a Chapter 13 case, debtors may keep their property by repaying creditors over the life of a plan that may extend from 36 to 60 months. The length of the plan may be fixed by law, depending on the debtor’s income. When a debtor files Chapter 13, the debtor proposes to make monthly payments to a Chapter 13 Trustee, who in turn disburses funds to various creditors according to the Plan, once the Plan has been approved by the Court. Upon completion of the payment plan, most debts are discharged.
Other types of bankruptcy are set forth under Chapter 9, 11, and 12 and include:
Chapter 9 (“Municipal or Governmental Bankruptcy”) is only for municipalities and governmental units, such as schools, water districts and similar entities.
Chapter 11 (“Reorganization Bankruptcy”) this chapter generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. The plan of reorganization which must be approved by the Court. In addition to the filing fee, a quarterly fee is paid to the U.S. Trustee in all Chapter 11 cases.
Chapter 12 is designed for “family farmers” or “family fishermen” with “regular annual income.” It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. Under chapter 12, debtors propose a repayment plan to make installments to creditors over three to five years. Generally, the plan must provide for payments over three years unless the court approves a longer period “for cause.” But unless the plan proposes to pay 100% of domestic support claims (i.e., child support and alimony) if any exist, it must be for five years and must include all of the debtor’s disposable income. In no case may a plan provide for payments over a period longer than five years.
Although the laws offer different options that may be available to a you, the decision to file, or under which chapter to file, depends on your situation.
Those who quality for either Chapter 7 or Chapter 13 have an advantage in that they are able to choose the type of bankruptcy that makes the most sense for their particular circumstances.
If a person can choose between Chapter 7 and Chapter 13, most people who file for bankruptcy choose to use Chapter 7 because Chapter 7 does not you require you to pay back your debts. But Chapter 13 may be a more attractive alternative for those who may have missed house payments and want to safely make up those missed payments over time, instead of losing their home in foreclosure.
Considering your personal facts, comparing them to each chapter’s requirements, and deciding which chapter to select, is considered legal advice. While it is possible to file bankruptcy “pro se,” or without legal representation, the decision of whether to file a bankruptcy and under what chapter is an extremely important decision and should be made only with competent legal advice from an experienced bankruptcy attorney after a review of all the relevant facts. Moreover, if you do file bankruptcy pro se, you must know that the Court is not permitted to give legal advice, assist with the preparation of forms, or assist you during various meetings and proceedings that may be scheduled in your case.
It may make it possible for you to:
When a case is filed, the petition, schedules and other related documents become a matter of public record. Credit reporting agencies regularly collect information from bankruptcy cases to report on their credit reporting services. Bankruptcy may appear on your credit record for ten years from the date your case was filed, pursuant to the Fair Credit Reporting Act, 6 U.S.C. § 605, as opposed to the seven years other credit information may remain on a credit report.
For those with large or a high number of delinquent accounts, the credit score may already be so low that a bankruptcy may actually help. Because it wipes out old debts, bankruptcy may free up income so that a consumer can pay current bills and obtain new lines of credit after filing bankruptcy. The decision whether to grant you credit in the future is strictly up to the creditor and varies from creditor to creditor depending on the type of credit requested.
Debts discharged should only be listed as having a balance of $0, with no remaining balance owed on the debt. Debts incorrectly reported as having a balance owed will negatively affect the credit score and ability to get credit after the case is discharged. Everyone should regularly review his or her credit report, before and after bankruptcy, to resolve any disputes in debts reported with the various credit bureaus.
The three main credit Reporting Agencies are:
Experian
Profile Maintenance
P.O. Box 9558
Allen, TX 75013
(888) 397-3742
Website: www.experian.com
Trans Union
Attn: Public Records Department
555 West Adams Street
Chicago, IL 60661
(800) 888-4213
Website: www.transunion.com
Equifax
P.O. Box 740241
Atlanta, GA 30374
(800) 685-1111
Website: www.equifax.com
Long-term care insurance covers the risk that you may at some point in your life be placed into a nursing home by paying for some or all the expenses associated with nursing home care. It also frequently covers assisted living care or care in your home. Long-term care insurance can be a very valuable tool that can help you avoid depleting your estate in order to pay for nursing home care. Nursing homes greatly vary in cost depending on the quality of the home and the geographic area of the country in which the care facility is located. At a minimum, you can expect to pay several thousand dollars a month for decent nursing home care, which can rapidly deplete an individual’s savings.
Medicaid is a federal program that will pay for nursing home care. Medicaid is not to be confused with Medicare, which in most cases will not pay for extended nursing home care. Medicare is a program which people pay into during their working years, while Medicaid is a needs-based program intended to help impoverished Americans with medical expenses.
Medicare does not provide coverage for long-term care, such as nursing home care. Medicare will pay for up to 100 days of skilled nursing care per illness. A patient must be hospitalized for the illness, and the patient must receive a high level of care in a nursing home that couldn’t be provided at home or on an outpatient basis. After 20 days of nursing home care, there is a large copayment required of the patient for the remainder of the stay.
Medicare will also pay for home health benefits if you are housebound and if a doctor has ordered home health services for you, at least some of which are skilled. Medicare will pay for up to 35 hours of services per week, and patients only have to pay for 20 percent of the cost of medical supplies.
Medicaid planning is legal. Elder law attorneys work to protect clients’ assets within the bounds of the law. Congress allows citizens to qualify for Medicaid after meeting certain requirements, and those requirements could be changed if Congress felt they were being abused. Medicaid planning is not any more illegal than planning to avoid taxes.
There’s no simple answer as to how long it might take an individual to qualify for Medicaid. There are many variables in every situation that must be taken into consideration and ultimately affect the eligibility timeline, including the state in which you live, whether your application is complete, your assets, income and expenses, any asset transfers you’ve made to individuals or trusts, and more. Before applying for Medicaid, you should consult an elder law attorney in your area. The attorney can help you understand both eligibility and the application process, and should be able to give you an estimate of the time frame you can expect.
If a child removes money from your joint account, that could be considered a transfer to him. Currently, Medicaid has a “look back” period on transfers of assets within the past 60 months. This means that any gifts or other transfers of assets you made in the 60 months before you applied for Medicaid will be assessed in order to determine your eligibility. If you did transfer assets in the five year period before applying for Medicaid, you could be subjected to a penalty. Therefore, if you made a transfer of assets in the past five years, you should not apply for Medicaid without consulting an elder law attorney because the penalties could be severe.
First, how is the nursing home ranked by accreditation agencies or state regulators? Have there been violations or complaints against the nursing home? How does the nursing home rank when compared with other homes in the area? You should also visit the facility in person and request a tour.
Another important factor to consider is location. Is the nursing home located in an area that is convenient for family and friends to visit? Would family members be more likely to visit a nursing home located in another area?
Before choosing a nursing home, take a tour and ask for references of family members of current residents. If possible, take the tour at an unscheduled time, so that you know that what you are seeing isn’t staged for your benefit. During the tour, look carefully at the interactions between staff and patients. Does the staff seem caring and concerned? Do the residents seem content? What is the quality of the food served?
Choosing a nursing home can seem overwhelming at first, but often after visiting a few and evaluating their quality of care, the decision becomes easier.
No, if you anticipate needing Medicaid at any point in the foreseeable future, it’s prudent to seek the advice of a qualified elder law attorney. There are steps you can take to protect your assets which may not be available when you actually need Medicaid. Some of those steps may include transferring your assets or establishing trusts. An elder law attorney with expertise in Medicaid planning can evaluate your situation and advise you on the most prudent steps to take in order to preserve your rights and maximize benefits.
The cost of an elder care lawyer depends on the specific situation our clients are in. The situation could call for little work, or it could call for moving many assets, retirement accounts, the house, the farm, the family, etc. For that reason the fee can vary depending on the client. The practices we use save our clients money, even after our fee. If you need help in this area of law, please Contact Us.
The heart of estate planning is determining what happens to your assets when you die. In one way or another, any property you own at the time of your passing must pass on to someone else. And in the vast majority of cases, you, as a competent adult living in the United States, have the right to determine who that someone will be. (This right is not absolute, however: most states observe spousal right of election, which doesn’t allow a spouse to be completely disinherited.) A proper estate plan dictates what should happen with your home, investments, business, life insurance, employee benefits (including a retirement plan), and other property in the event of death or disability. In addition, a good estate plan employs strategies to reduce any potential estate taxes and settlement costs. It’s also wise to include instructions to carry out your wishes regarding health care: in the event you are unable to make your directions known, your chosen representative can do so on your behalf.
Estate planning is not just for the rich and famous; it can very often be an extremely useful tool for many different people. This is because the default process for distributing a deceased person’s property is more complex, time-consuming, and generally burdensome than many people realize. Contrary to popular belief, a person’s assets are not automatically shared among their children after he or she passes. Without sufficient legal preparations in place at the time of your passing for the management of your assets and affairs, the intestacy laws of the state will take over. Not only will the courts control the distribution of your estate, often resulting in the wrong people receiving your assets, your beneficiaries may face higher estate taxes as well.
This court-managed distribution of your estate is called probate, and is smart to avoid. Probate is public, can be expensive, and frequently keeps the assets of the deceased in limbo and unavailable to one’s beneficiaries for a substantial amount time. Lack of clear direction on your part can also leave your family members to fight among themselves for the opportunity to be appointed to manage your affairs. It is not uncommon for a family to fall into feuding over small sums of money or a family keepsake.
Your estate is everything that you own, no matter the location, including:
For children under eighteen years of age, it is vital to choose a person or persons to be appointed guardian(s) to look after them and their property. Naturally, if a surviving parent lives with and has custody over the minor children, he or she will automatically remain their sole guardian, even if you have named another guardian in your estate plan. You should also prepare for the possibility that the primary guardian is unable to serve or is not appointed by the court; as a contingency, you should name at least one alternate guardian.
After in-depth consultation about your specific financial and family situation, an attorney should prepare the following documents to make up your comprehensive estate plan:
A Living Trust allows you to manage your property by transferring the ownership rights of your assets to the trust. During your lifetime, you (and your spouse) serve as the Trustee(s) and beneficiaries, but you also choose any successor Trustees to fulfill your instructions upon your death or incapacity. A trust differs from a will, in that it typically takes immediate effect after death or incapacity. You are allowed to make changes to and even terminate your Living Trust; this is referred to as being “revocable”. A properly funded Living Trust also enables you to reduce the costs, publicity, and time associated with probate, and may even allow you to avoid the process altogether.
A Living Trust-based estate plan also requires the use of a pour-over will. This document lists your choice of guardian if you have minor children. A pour-over will also makes sure that the executor of your estate is able to transfer any assets owned by you into your trust so that they are distributed according to your wishes.
A Will (known formally as a Last Will and Testament) has the primary purpose of transferring your assets according to your wishes. It also usually appoints someone to be your Executor, who, as the name suggests, is the person you choose to execute your instructions. You should also use your Will to designate a Guardian to care for any minor children; alternate Guardians should be appointed as well in case your first choice is unable to serve. A Will becomes effective upon your death, but only after its admission by a probate court.
A Durable Power of Attorney for Property grants the ability to continue your financial affairs should you become incapacitated. Without a well-drafted power of attorney, finding someone to make decisions on your behalf during a period of disability may require applying to a court to have it appoint a guardian or conservator. Like probate, the guardianship process is tedious, costly, and can also take quite an emotional toll.
Durable powers of attorney for property generally come in two varieties. A present durable power of attorney immediately transfers power to your agent (also known as your attorney in fact), while a springing or future durable power of attorney takes effect only upon a later disability. The most common choices for an agent are a spouse or domestic partner, a trusted family member, or a friend, though anyone can appointed. Designating a power of attorney makes sure that your wishes are followed precisely, enables you to choose who will make decisions on your behalf, and takes effect immediately after a later disability.
A different, but related estate planning document is a Durable Power of Attorney for Health Care or Health Care Proxy. Should you lose the ability to make medical treatment decisions for yourself, this power of attorney allows you to designate someone you trust to do so for you. If you wish, you can limit the scope of the decisions your health care agent can make and also provide instructions that he or she has to follow. This keeps “you” in charge: health care professionals must respect your agent’s decisions as if they were coming from you.
A Living Will serves to tell others of the medical treatment you prefer in the event of permanent unconsciousness, terminal illness, or any other situation which leaves you incapable of making or communicating decisions regarding treatment. When included in your estate plan, a Living Will can help provide peace of mind and security and prevent unnecessary expenses and delays should you become incapacitated in the future.
Finally, you should also include a signed HIPAA authorization form with your other documents. This is because certain medical providers in the United States have refused to release medical information on the basis that HIPAA (the 1996 Health Insurance Portability and Accountability Act) does not allow such releases. Even close relatives, such as spouses and adult children, who would otherwise have permission through durable medical powers of attorney have been denied. Signing a HIPAA authorization form will ensure the release of medical information to whomever you choose, including your agents, successor trustees, and family.
Probate is a court supervised process used to distribute your property. The process takes a minimum of six months in Arkansas and can take years to complete if it is complicated or people disagree with the validity of the Will or the distributions. It often requires that lawyers or other professionals be hired. If you die without a will, your property will still have to pass through the probate system. If you die without a Will, your estate will be distributed according to the Arkansas intestacy statute.
There are three main reasons to avoid probate: 1) Cost, 2) Privacy, and 3) the length of time probate takes.
Probate is not cheap or quick. Probate requires a hearing in busy Arkansas courts; the process will tie up your property for a minimum of 6 months and possibly years. This means your loved ones will not get the property you intended for them until the probate process is complete.
In addition, probate is very expensive. The Executor and attorney’s fees add up. If they were both allowed the maximum fees by Arkansas statute on a $500,000 estate the probate attorney fees would be $14,050 and the Executor’s fees would be $15,150 and that does not include court costs and other expenses. And unfortunately, you’re no longer around to do anything about it.
Not the Kind of Publicity You Want
The courts are public and do not afford privacy. Everything that comes before a judge is public record and the same is true with your estate. A Will is a very personal document, and may reveal private family and financial issues and concerns. After it enters probate it becomes public and can be inspected by anyone.
A living trust, also known as a Revocable Living Trust or a Family Trust is a legal document that holds legal title or ownership to your property and assets. When you create a Revocable Living Trust you transfer ownership of your assets to your trust. When you transfer assets into the trust it is called “funding” the trust. When you transfer title you do not lose any control. You can still buy, sell, borrow or transfer any of your property.
To many a living trust is very similar to a will. It includes the details and instructions for how you want your estate to be handled at your death. Unlike a Will, however, a properly funded trust:
A properly drafted and funded revocable living trust offers a number of estate planning advantages over dispositions under the terms of a Will.
Management of Assets in Event of the Grantor’s Incapacity: The trust can provide for management of the trust assets by a person you can select if the grantor becomes incapacitated through physical disability, incompetency, etc. Third parties frequently question the authority of an agent when they are attempting to use a power of attorney, so the revocable living trust is generally superior to that instrument.
Continued Property Management after Death: The trust provides management of the trust assets both before and after the grantor’s death. If the trust is funded properly, then it controls without interruption for probate and estate administration.
Avoidance/Reduction of Probate and Estate Administration Costs and Delays: The trust insulates the trust assets from the probate and estate administration process that assets passing under a Will are subject to, thereby saving those fees and costs. Moreover, it reduces if not eliminates the delays in distribution of estate assets that may result from probate. This could be particularly helpful if the grantor owns real estate in other states, which may otherwise require a separate probate proceeding in each state.
Avoidance/Reduction of Litigation: It is more difficult for a unhappy heir to contest a revocable living trust than a Will. During the probate of a Will, the heirs must be given written notice of their opportunity to contest the Will. A trust is not subject to this requirement.
Confidentiality of Dispositions and Identity of Beneficiaries: Upon your death, the Will is filed in the probate court and become available to the public and more and more is posted online through the court website. A living trust agreement is typically not filed in court system and does not become public record.
Selecting Law Most Favorable to Property Disposition and Administration: The trust may enable the grantor to avoid restrictions on disposition and administration of his property imposed by the law of the state of his domicile. These laws would apply to property passing under his Will. A living trust allows him to choose more favorable laws of another state to apply to the disposition and administration of the property placed in the trust.
To Act as a Receptacle for Non-Probate Assets: The trust can act as a receptacle for non-probate assets (life insurance proceeds, retirement plan death benefits, etc.) after death to coordinate their disposition under the plan along with the other assets you own.
No. Your property is still considered your property and you can use and enjoy however you desire. You still retain full control over your property, you may use the equity in your property, continue to take the tax write off from the interest on your mortgage, exchange one piece of property for another. Everything you could do before you had the trust, you can do after you have the trust in place. There are no changes in your income taxes. There are no new Tax Identification Numbers to obtain. A Living Trust is revocable, that means you can modify it at any time or revoke. You can transfer property in and out of the trust however often you desire. Upon your incapacity, the individuals you designate will be able to manage the trust on your behalf and they must follow the instructions you have given in the Living Trust. Upon your passing, the Living Trust can no longer be modified and the successor trustee(s) you have designated must then proceed to implement your wishes as directed by the trust.
wh Law | We Help, recommends that all property that can go into the trust be titled in the trust’s name. Sometimes our firm gets the call or is that the client has a small checking account that they do not want to “bother” to put into the living trust. The disadvantages to leaving it outside the trust depend on the circumstances for each situation. It can be very difficult to deal with the bank after the death of the account holder and having money outside the trust and outside the flow of distribution set up by the trust can cause problems.
Assets with beneficiary designations such as a life insurance policy or an annuity payable directly to a named beneficiary do not need to be transferred to your living trust. Furthermore, money from IRAs, Keoghs, 401(k) accounts, and most other retirement accounts transfer automatically on the death of the account owner outside of probate. Bank accounts can be set up as payable-on-death account (POD for short) with a named beneficiary and pass to that beneficiary without having to be titled into your trust. It is important, however, to seek the counsel of an experienced estate planning attorney who can advise on and assist with transferring necessary assets to your trust.
No. As long as you continue to live in that home .federal law prohibits financial institutions from accelerating your loan because you transferred the mortgaged property into your living trust. The only exception to the federal law is it does not provide the protection for residential real estate with more than five dwelling units.
There are two types of death taxes that you should plan for: the federal estate tax and state estate tax. The federal estate tax is calculated as a percentage of your net taxable estate, which itself consists of all assets under your ownership or control after subtracting certain deductions. These deductions can range from charitable contributions to administrative costs (including funeral and burial expenses). Currently, the federal estate tax applies to estates with net assets of $5,250,000 or more.
Even if you believe that the federal tax won’t apply your estate, it is still necessary to determine whether state estate and inheritance taxes will. It’s also possible that your estate may be taxable in the future as your assets appreciate in value. For these reasons, going over your estate plan with an estate planning attorney on a regular basis is an important part of your future planning. Doing so will also ensure your estate plan makes adjustments for alterations in tax laws as well as changes in your individual circumstances.
Your taxable estate consists of the total value of the assets you own, minus liabilities and deductions.
Your assets include:
And examples of the liabilities and deductions you would subtract from your assets are:
Any taxes assessed on the taxable part of the estate are paid from the estate itself before the assets are distributed to your beneficiaries.
As a married individual, you are allowed by the federal government to give an unlimited amount of assets to your spouse, tax free, so long as they are transferred by gift or bequest. This unlimited marital deduction has the effect of delaying the payment of estate taxes: upon the death of the first spouse, all assets may pass to the surviving spouse. Then, at the passing of the surviving spouse, all remaining assets in the first spouse’s estate over the applicable exclusion amount ($5,250,000 in 2013) will be included in the survivor’s taxable estate. Application of the Unlimited Marital Deduction is limited, however, to surviving spouses who are United States citizens.
A Credit Shelter Trust (sometimes known as a Bypass or A/B Trust) can be used to avoid or decrease federal estate taxes. It is most often used by a married couple when the value of their estate surpasses the federal estate tax exemption.
Thanks to the Unlimited Marital Deduction, the federal government allows a married person to gift or bequeath an unlimited amount of assets to his or her spouse, tax free, and leave any of his or her estate tax exemption untouched. For individuals with substantial assets, however, the Unlimited Marital Deduction only succeeds in delaying estate taxes, rather than eliminating them. This occurs because, when the second spouse passes away with an estate valued at more than the federal exemption total, the amount of the estate exceeding the exemption may be subject to estate tax. By that time, of course, the first spouse’s estate tax credit was never taken advantage of and now cannot be used. It is possible to avoid this situation by establishing a Credit Shelter Trust, which works to preserve both of the spouse’s exemptions. Upon the first spouse’s passing, two things should happen: (1) even if no taxes are due, an estate tax return is filed, and (2) the Credit Shelter Trust creates a separate, irrevocable trust comprised of the decedent’s assets, but funded only to the extent of his or her exemption. The rest of the estate is then bequeathed to the surviving spouse. As a result, the irrevocable trust makes full use of the first spouse’s estate tax credit and the assets in the trust are not taxed, even if they appreciate in value. In a Credit Shelter Trust, the surviving spouse is the beneficiary and any children are beneficiaries of the remaining interest.
Our homes frequently hold great value for us, both sentimental and material; as they are often among the largest parts of our estate, they can also hold great value to federal and state tax agencies. One way to reduce the tax burden generated by a home is to establish a Qualified Personal Residence Trust or QPRT (pronounced “cue-pert”). With this type of trust, you can still live in your home or vacation house, but transfer ownership for a substantial discount and freeze its value when it comes to estate taxes. It works like this: You grant the title to your house to the QPRT (often to benefit your family members), but specify that you can continue to live in the house for a certain length of time, usually years. After that period has passed, the property passes to your beneficiaries without any additional estate or gift taxes, despite any appreciation in value the house may have accrued. Once that happens, you are allowed to continue living in the home but must pay rent to your family or beneficiary so that the property is not included in your estate. This can be advantageous, serving to further decrease the value of your taxable estate, although the rent income will be taxable as income for your family. On the other hand, should you die before the end of the period, inclusion of the total value of the house in your estate is unavoidable, but in the majority of cases you are no worse off than you would have been had you not established a QPRT. A QPRT also provides great protection from creditors: once the QPRT is created and your residence is transferred to it, the property is technically owned by the trust, rather than you.
It is commonly understood that the proceeds of a life insurance policy paid to your beneficiaries are not subject to income taxes. Unfortunately, this does not hold true for Federal Estate Taxes. In fact, since life a insurance pay-out is considered part of your taxable estate, your family or beneficiaries could stand to lose up to half of its value to estate taxes. This is where an Irrevocable Life Insurance Trust can help. The goal of an ILIT is to own your life insurance policy, keep the policy outside of your estate, and prevent the proceeds from being taxable as part of the estate. There are a number of ways to set up an ILIT. As one option, ILITs can be built to provide income to a surviving spouse while granting the rest to your children from a previous marriage. And in the case of a child who is not financially responsible, you can arrange for distribution of a restricted amount of the insurance proceeds over a given length of time.
A Family Limited Partnership (FLP) is a type of limited partnership formed among members of a family. A limited partnership has two kinds of partners: (1) general partners, who manage the trust, and (2) limited partners, who are passive investors. While general partners hold unlimited personal liability for partnership responsibilities, limited partners bear no liability aside from their capital contributions. This kind of partnership is often established by older generation family members who contribute assets to the FLP and receive both a small general partnership interest and a large limited partnership interest in return. These family members then transfer the limited partnership interests to their children and/or grandchildren, but retain the general partnership interests that allow for control of the partnership.
The FLP has several benefits. First, by transferring limited partnership interests to family members, older family members can reduce the amount of their estate subject to taxation, while also continuing to direct decisions about the partnership’s assets and any distributions. Furthermore, because the limited partners are not responsible for the partnership’s operations, a minority discount can be applied to their interests to reduce their value for purposes of gift and estate taxes. Finally, a well-constructed FLP may provide protection from creditors, since the general partners are not required to distribute the partnership’s earnings.
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