Richard Mays Law Firm PLLCRichard Mays Law Firm PLLC2024-03-25T18:04:25Zhttps://www.richardmayslawfirm.com/feed/atom/WordPress/wp-content/uploads/sites/1603169/2022/01/cropped-Richard-site-icon-32x32.jpgOn Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468602024-03-25T18:04:25Z2024-03-25T18:04:25Zthis impact your estate plan?
What happens to your estate plan, and more specifically, your debts, in this situation depends on various factors.
The type of bankruptcy you filed
A Chapter 7 bankruptcy discharges all your qualifying debts through the sale of certain assets. A Chapter 13 bankruptcy allows you to pay off your qualifying debts on a three to five-year payment plan.
Chapter 7 bankruptcy involves appointing a trustee who administers the debt discharge process. Assuming the trustee is already appointed when you pass away, the bankruptcy process can typically continue as usual.
This means your qualifying debts will still be discharged. Your beneficiaries or heirs should not be involved with the process or be responsible for paying any of the debts.
The situation is more complicated for your heirs if you were in a Chapter 13 bankruptcy and still involved in the three to five-year payment plan.
In this case, the bankruptcy court may choose to discharge the bankruptcy, leaving the remaining debts outstanding. Alternatively, your beneficiaries could choose to continue to make your payments under the Chapter 13 payment plan until the debts are discharged.
This choice is up to the beneficiaries. They are not required to continue to make your Chapter 13 bankruptcy payments after you pass away.
Real estate and personal property
If you owned a home and had a mortgage, your beneficiaries have an incentive to keep making your Chapter 13 payments. Many people choose Chapter 13 plans specifically to keep their homes.
Continuing to make the payments will keep the home out of foreclosure. The same reasoning applies for other types of secured debt, such as vehicles, furniture or other personal property. Your beneficiaries can choose to make payments to keep these assets.
Another reason beneficiaries may choose to continue to make Chapter 13 payments is to discharge the debt and receive a portion of their estate inheritance, since Chapter 13 payments usually involve paying less on debts than fair market value.
There are other factors your beneficiaries may consider when determining whether to keep making the Chapter 13 payments, such as the amount of the debt, how much time is left on the payment plan and their chances of keeping the secured property if they continue to make payments.
Bankruptcy with your spouse
What happens if you enter the Chapter 13 payment plan with a spouse? Your spouse has several options if you pass away.
They can ask the court to lower the monthly payments to only account for the debt that belonged to them. If the debt was all joint debt, they can still request a lower monthly payment or a hardship discharge if there is a loss of income.
As with your beneficiaries, a spouse who can continue making the Chapter 13 payments can generally keep the portion of assets they would receive under your estate plan.]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468592024-02-27T15:32:33Z2024-02-26T15:28:18Ztips to help you achieve that goal.
Priorities matter
Consider your priorities. You may want to sell your apartment complex as soon as possible or you might be more concerned with getting the best price. This might mean waiting longer, perhaps a year or more, to sell.
Although selling quickly could be best for your situation, it is usually better to take time to learn your goals and the best time to sell. A little patience can go a long way toward getting the best return on your investment.
Learn about your local market. Obtain detailed information about the trends in your local real estate market and review them regularly.
This includes any new construction in the area, changes in the demographics and the job market. Keeping up to date with this information can help you know when the best time is to sell.
Appraisals
Have your complex appraised. This is a common requirement in a sale and often both you and the buyer’s lender will have appraisals performed.
There are several different appraisal methods that can be used to appraise an apartment complex. Become familiar with them and determine which is best for you. When your appraisal is complete you are ready to set your sale price.
Once your sale process is underway, have the apartment complex inspected. You should know everything possible about the physical condition of your property and any defects that should be repaired before the sale.
All systems and components of the complex should be inspected. In addition to the physical structure, the electrical, mechanical and plumbing systems must be in good working order.
Know Arkansas law when it comes to inspections. You must comply with the law regarding commercial building sale inspections. Consult with a professional to verify that you have met all applicable legal requirements before closing.
Contracts and rental agreements
Review all contracts associated with your apartment complex with individuals or businesses who will continue to provide service to the complex. Learn the date you will stop being responsible for any payment for work performed under these contracts.
You should also thoroughly review all your rental agreements. Update any language to comply with any new legal requirements. Make sure your rent books are accurate and have a current list ready of any tenants with outstanding rent.
Taking these steps can help increase your chance of a successful and smooth sale.]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468572024-01-26T14:45:21Z2024-01-26T14:45:21ZWatch out for these mistakes when creating your estate plan
The estate planning process is what you make of it. Although that can provide a lot of comfort, it also opens the door to error. So, as you navigate your estate plan, be aware of these mistakes so that you can take the necessary precautionary actions to avoid them:
Procrastinating: If you wait too long to create your estate plan, then you risk passing away without one in place. In these circumstances, assets are distributed according to the state’s intestate succession laws, which may not align with your wishes. Procrastinating in the creation of your estate plan can also leave you susceptible to becoming incapacitated without someone you trust in place to make important financial and health-related decisions on your behalf.
Failing to modify: Although you might feel a sense of relief and security once you create your initial estate plan, the estate planning process doesn’t end there. You need to revisit your estate plan from time-to-time to make the changes necessary to keep your it in line with your vision of the future. For example, if you forget to update your estate plan after a divorce, then your assets could end up in the hands of your former spouse.
Skimping on the formal process: A lot of people think that they can create their own estate plan without the help of an attorney. However, there are strict requirements that must be met when an estate plan is executed, otherwise it can be successfully challenged and subsequently deemed legally invalid. So, don’t cut corners when it comes to creating your estate plan.
Not discussing your estate plan with your family: While talking about your estate plan with your loved ones isn’t required, it can certainly temper expectations and avoid potential infighting. This could reduce the risk of probate litigation and prevent the damaging of relationships that are important to you and your loved ones.
Not taking long-term care into consideration: Statistically speaking, there’s a decent chance that you’re going to need long-term care at some point in your life. This might be in the form of a nursing home stay or intensive in-home care. Either way, it can be costly. If you don’t take this into account when creating your estate plan, then your assets can be quickly eroded away by these expenses.
Get the most out of your estate plan
There’s a lot that an effective estate plan can do for you and your loved ones. However, to take advantage of these benefits, you have to know how to navigate the estate planning process. That’s why if you’d like more information about what it takes to successfully create the estate plan that’s best for you, then now is the time to find answers to your lingering questions.]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468562023-12-28T13:07:47Z2023-12-28T13:07:47Zattractive option for a business structure for many reasons. Partnering with someone can give you a broader range of knowledge for your business. Your business partner might have skills and expertise in areas that you do not and vice versa.
Having a partner means you share in business costs and responsibilities, allowing you to pursue more business opportunities. A partner also reduces the stress involved in running a business. You are not going it alone. Your partner is there to provide another perspective and provide support when you need it.
Despite these benefits, there could come a time when you and your partner have a disagreement or misunderstanding. Before this develops into a dispute that threatens the partnership altogether, there are some strategies that you can use to facilitate a resolution.
Draft or update a partnership agreement
If you haven’t already formed your partnership, you can do so by drafting a partnership agreement. If you already have one, perhaps it needs updating to account for a change in circumstances.
The idea behind a partnership agreement is for all partners to understand their rights, duties and responsibilities to the partnership. Your partnership agreement is unique to your business, so you should not use a standard or template agreement.
Rather, your partnership agreement should state the responsibilities of each partner, their capital contribution requirements and how each will be compensated. A good partnership agreement will also contain information about how decisions are made or disputes are resolved.
Communicate with your partner
Good communication goes a long way toward resolving partnership disputes. As with any other interpersonal relationship, misperceptions, confusion and misunderstandings happen without open and honest communication.
Find a quiet, private time to sit down and talk with your partner. Put emotions aside and focus on the facts of the dispute. Listen to their side without interrupting or getting defensive.
Find common ground. These techniques will usually result in a successful plan for resolving the dispute.
If your dispute still cannot be resolved, consider bringing in a third-party such as a mediator to help. Your partnership agreement could include this as a requirement when facing disputes.
The role of a mediator
A mediator must be neutral about the dispute and cannot decide the dispute for you. Their goal is to help you discuss the dispute and offer suggestions for resolution. They can potentially assist with modifying or drafting a partnership agreement to reduce the chance of similar disputes in the future.
In some situations, the dispute cannot be resolved and litigation becomes a looming possibility. Before you run to file a lawsuit, a professional review and evaluation of your situation is best.
Partnership disputes that end up in litigation rarely end well. Your relationship with your partner will likely never be the same and your partnership may end up dissolving due to the conflict, no matter the ultimate outcome in court.
]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468532023-11-29T19:09:08Z2023-11-28T18:31:53Zplanning for long-term care.
The costs of long-term care
When you're young, you don't like to think about the possibility that you may one day become unable to care for yourself, but it is a very real possibility. According to some sources, Americans ages 65 and older have a 70% chance of needing long-term care at some point in their lives.
And this care is enormously expensive. A private room in an assisted living center currently costs $54,000 or more per year. For nursing homes and other facilities that offer more extensive care, the annual cost for a private room can be well over $100,000.
Medicaid eligibility
Millions of older Americans rely on Medicare to pay for most of their medical expenses, but Medicare does not cover the costs of long-term care. Medicaid, another government program, can cover long-term care, but many Americans find that they are not eligible for it.
Medicaid was designed to provide medical care for people who cannot otherwise afford it, and so the program has strict financial eligibility requirements. Those who have more than a certain amount in income and assets are ineligible. The exact threshold for eligibility depends on a number of factors, but in all cases it may be lower than you expect.
The high cost of long-term care and the low threshold for Medicaid eligibility leaves many Arkansas residents and their families in a difficult situation. The costs of their long-term care can quickly wipe out all their savings, leaving them with nothing to pass on to their loved ones. And if their family members are paying for their care, they can easily be wiped out as well.
Medicaid planning trusts
One way around this problem is by using a trust.
When you create a trust, you place your assets under the control of a trustee, who manages the assets for the named beneficiaries. It's common in estate plans for clients to name themselves as beneficiaries while they are alive, and then name their family members as their successor beneficiaries. in this way, the assets in the trust can provide for the a client for the rest of their life and then provide for the client's loved ones after they are gone.
There are many advantages to this type of arrangement. For the purposes of long-term care planning, one advantage of a trust is that it helps a person maintain eligibility for Medicaid.
When you place assets in a trust, they no longer belong to you. This mans those assets won't necessarily be counted against you when Medicaid is determining whether you are eligible. If you set up the trust carefully, the trustee can provide you with income that is below Medicaid's threshold, so you can take advantage of the program's long-term care coverage. After your death, your loved ones become the new beneficiaries of the trust, with the trustee managing the assets for them.]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468522023-11-27T19:34:42Z2023-11-10T19:33:34ZKnow the basics for all aspects of a will
It is imperative to adhere to the fundamentals of a will when it is being written, executed, revoked and revived. Any will is considered valid if it is written by a person who is at least 18 and is of sound mind. They are considered of sound mind provided they could think rationally and were aware of what they were doing when they wrote the document. There must be two competent witnesses who were at least 18 and had no interest in its contents. It must then be signed.
There are many reasons why a will might need to be revoked. Dramatic life changes such as a divorce, remarriage, having children, having grandchildren, a fortunate financial windfall – all are justifications to revoke the will and start over. It must be done according to the law to be valid.
Simply writing a new will revokes the previous one if there are inconsistencies between the two. The will can also be revoked by destroying it. The testator can do this or instruct another person to do so.
The will is automatically changed if a person gets divorced and they do not stipulate that the former spouse should still receive what they were set to receive in the will. For example, a person might have left their marital home, automobiles and a retirement account to the spouse. The divorce revokes this without the testator needing to do anything. It is crucial for the testator to understand this if they want the former spouse to still receive certain properties despite the divorce.
A revoked will can be revived if it is re-executed. It can also be revived if it is referenced or incorporated in a subsequent will. Apart from that, it cannot be revived if it was revoked or found invalid.
Estate planning should not be ignored
People come up with myriad justifications as to why they have not taken the necessary steps to create a basic estate plan by writing a will. This might be viewed as a problem for younger people, but even older people forget that a will is a vital document to protect their loved ones.
After writing the will, it is useful to remember that it might need to be periodically reviewed and updated. Sometimes, it needs to be revoked completely. To avoid disagreements among loved ones and to make sure the testator’s objectives are clearly communicated, knowing how to write, update, revoke and revive a will is a wise step.]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468512023-10-24T18:19:01Z2023-10-12T18:12:20Zestate plan do for you? That’s a good question and one that we hope to answer here.
It can specify future care of your children: If you and your children’s other parent pass away without an estate plan, then your family members could end up fighting over your kids. As a result, your kids might end up in a home that’s not right for them, and your relatives might end up with broken relationships that are irreparable. You can avoid all of that by indicating in an estate plan who will serve as your children’s guardian.
It can specify care of your pet: If you have a beloved pet, then an estate plan can put money aside for their care and specify who you’d like to provide for them when you’re gone. Your estate plan thus allows you to avoid a situation where your pet is left without a home and ends up in a shelter.
It can protect you in the event of incapacitation: Although we don’t think about it much, we can become incapacitated at any moment. You could get hit with a serious medical condition or be severely injured in an accident. Either way, when you’re incapacitated and unable to act on your own, who is going to make decisions for you? Through your estate plan, you can name an individual to take charge of your health care and financial decision-making when you’re unable to do so.
It can address the assets you do have: Even though you’re young and don’t have as many assets as your parents or grandparents, you probably have more than you think. You’ve probably got some money in the bank and equity built up in a car or a home. You might even have a retirement account through your employer, and you’ve likely got digital assets like your social media profiles and online photo banks. All of these assets can be distributed through your estate plan in accordance with your wishes. If you don’t plan, then those assets will be distributed in line with the state law requirements, which might not align with your wishes.
Don’t wait too long to create your estate plan
There are several benefits to estate planning, some who which aren’t discussed here. You want to take advantage of the protections afforded by the process. To do so, however, you need to understand your estate planning options and your goals. So, take the time you need to research what estate planning entails and what it can do for you and your family. That way you can make the fully informed decisions that are right for you.]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468502023-09-12T10:33:14Z2023-09-12T11:00:57Zcalled an eminent domain proceeding.
You might receive compensation that is a good faith estimate of your property’s value, with additional hearings held later to determine the full value of your property. If the estimate was too low, you should receive the difference between that and the full value.
However, what happens if the government does not take your property, but does something outside of your property that interferes with or completely prohibits you from using your property?
Inverse condemnation
This situation is called inverse condemnation and you are typically the one who must initiate legal proceedings. You must prove that the government’s actions caused you to lose the use and enjoyment of your property.
Inverse condemnation does not necessarily require the government’s action to be done directly on your property.
For example, if you live next to a stream, and the government builds a new structure across the stream from you that causes the stream water to divert and flood your property, you could have a claim for inverse condemnation.
While the government themselves did not touch your land, their actions resulted in the loss of your use and enjoyment of your property, since it is now flooded. Proof of damage to your property may not be required if you can show that the actions affect your use of the property.
You have the right to fight back
The relief you request in your lawsuit is generally compensation for the full value of your property. The process follows the same general procedures as in a regular condemnation proceeding.
You may feel powerless in the face of the government, and this is understandable. Many people might not realize the rights they have in these situations.
You do not have to let the government take your land simply because they asked. If you do not want to give up your land, they must prove to a court why they need it.
Likewise, if they do not ask for your land but their actions are interfering with it or causing damage, you have a right to sue them for compensation.
]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468052023-08-02T15:35:52Z2023-08-10T15:33:51Zseveral different types of powers of attorney that can be set up in Arkansas. Each type has a different purpose and gives different powers to the person you appoint as your power of attorney. The person you appoint is called an agent.
Durable power of attorney
As of January 1, 2012, every power of attorney executed in Arkansas is a durable power of attorney. This means that the document automatically becomes effective when you become incapacitated.
The only way you can establish a nondurable power of attorney is to have the document specifically state that it is terminated upon your incapacity.
Financial power of attorney
You can set up a power of attorney for your financial affairs, health care decisions or both. The financial power of attorney allows you to state who you want to handle your financial affairs if you cannot.
Your agent gains the power to pay your bills, manage your investments or take any other actions to help you remain financially stable while you are incapacitated.
Handling your financial affairs may be more complicated than simply paying your bills. For example, you may run or manage a business.
General and limited powers of attorney
In this case, a general power of attorney could work better for you. This power of attorney allows your agent to run your business while you cannot. Since you cannot predict what types of business decisions you need to make on a daily, weekly or monthly basis, the language of a general power of attorney is normally broader.
Alternatively, a limited power of attorney typically has more detailed language and allows your agent to only carry out certain business transactions for you.
Limited powers of attorney are usually more appropriate for situations where someone will only be temporarily incapacitated or otherwise unavailable and cannot make the decisions or handle the business affairs on their own.
Medical power of attorney
The health care or medical power of attorney acts in the same way, except instead of financial decisions, your agent makes health and medical decisions for you according to the instructions in the document.
Your agent’s powers are automatically revoked when or if you regain capacity and can start making the decisions for yourself again.
Otherwise, you can set an end date to your power of attorney. It will also automatically terminate upon your death or under certain other circumstances.
If you pass away, your agent has no power to decide what happens to any of your assets. The terms of your will then take over and determine the distribution of your estate. Therefore, having both a will and a power of attorney can help prevent confusion or conflict.]]>On Behalf of Richard Mays Law Firm PLLChttps://www.richardmayslawfirm.com/?p=468042023-07-03T15:01:35Z2023-07-12T15:00:28Zbreach of contract. However, before you head into your case, you should have a full understanding of what you can get out of your case so that you know how to argue for what you want and deserve.
What remedies can you seek in a breach of contract case?
Depending on the facts, there are various ways that your breach of contract lawsuit can play out. Here are some of the remedies that you can seek in your case:
Compensatory damages: This is the most commonly sought remedy. Here, you might be able to recover expectation damages, which would be the difference between the original contract price and the actual price you had to pay as a result of the breach or consequential damages, which are those losses that naturally flow from the breach, such as lost revenues that are directly linked to the breach.
Specific performance: When monetary damages simply won’t make things right after a breach of contract, you may be able to have a court order against the breaching party to live up to their end of the negotiated contract. This remedy is often sought out when the subject of the contract is unique or otherwise special, therefore, rendering compensatory damages inadequate.
Injunction: Here, the court will order the breaching party to refrain from certain actions. The injunction may be temporary while the pending litigation plays out, or it may wind up being permanent. Injunctions are often seen in the context of breached noncompete, nondisclosure, and other employment contract cases.
Recission: With recission, you simply cancel the contract so that the parties return to the position they were in prior to the creation of the contract.
Liquidated damages: Some contracts specify the amount of compensation that is to be paid in the event of breach. This is often seen in situations where calculating compensatory damages is challenging. So, if your contract has a liquidated damages provision and breach occurs, you’re justified in seeking that amount.
Nominal damages: When a contract has been breached but you can calculate or demonstrate compensatory damages, you might be awarded nominal damages. Although this will be a lesser amount, it might lay the foundation for future legal action against the same defendant. It might also lead to the recovery of attorney fees.
Are you ready to fight for what you deserve?
There’s a lot at stake in a breach of contract case, which is why it’s important that you know how to protect your legal interests. Only then can you rest assured that you know how to fight to obtain the remedy that’s right for you under the circumstances.
We know that the thought of taking legal action can be stressful, but we think that learning about the process and how to present the facts of your specific case will ease your concerns. With that in mind, we encourage you to continue to research this issue so that you can then make the fully informed decisions that are right for you and your business.]]>