Who Gets the House? Why Your Deed May Matter More Than Your Will

One of the most common statements I hear is, "I already have a will, so my family won't have to go through probate." Unfortunately, that's one of the biggest misconceptions in estate planning. A will is an incredibly important document. It allows you to decide who should receive your property, nominate an executor to administer your estate, and even name guardians for minor children. However, a will generally does not avoid probate. In fact, a will is the very document that is presented to the probate court after someone passes away. Probate is the legal process of gathering a person's assets, paying valid debts, and distributing the remaining property according to the terms of the will. While many probate estates proceed smoothly, the process still takes time and requires court oversight. That doesn't mean probate is always something to fear. In many situations, it is the appropriate and necessary process. However, there are planning tools that may allow certain assets to pass outside of probate. For example, beneficiary designations on retirement accounts and life insurance policies generally transfer directly to the named beneficiary. Jointly owned property with rights of survivorship may also pass automatically to the surviving owner. In Arkansas, a beneficiary deed can allow real estate to transfer directly to a named beneficiary upon the owner's death without going through probate, while allowing the owner to retain complete control of the property during life. Every family's situation is different. Some people may benefit from additional planning, while others simply need a properly drafted will and an understanding of how the probate process works. The important takeaway is this: having a will is one of the best things you can do for your loved ones, but it is not the same as avoiding probate. Understanding the difference allows you to make informed decisions about your estate plan and helps your family avoid unnecessary surprises in the future.  If you have questions about how your assets will pass at your death or whether additional planning may be appropriate for your circumstances, speaking with an experienced estate planning attorney can help you better understand your options before they are needed.

In an era of rapidly evolving technology, a new asset class has emerged that has captured the attention of investors worldwide: cryptocurrency, particularly Bitcoin. While Bitcoin and other cryptocurrencies offer a decentralized and borderless financial system, they also introduce unique challenges for estate planning—challenges that can leave families struggling to manage or even access digital wealth after a loved one’s passing. If you haven’t thought about how your cryptocurrency holdings will be handled after you’re gone, it’s time to take action. The rise of digital currencies, such as Bitcoin, presents a new dimension to estate planning that requires both attention and foresight. Why Cryptocurrency Requires Special Attention in Estate Planning Unlike traditional financial assets like bank accounts or real estate, cryptocurrency operates outside of the traditional financial system. Transactions are recorded on a decentralized ledger called the blockchain , and ownership of cryptocurrency is verified through a system of cryptographic keys. These private keys act as a digital "password" to access your holdings, and without them, your crypto assets are as good as gone. This is where the estate planning process becomes critical. If a family member or loved one doesn’t know how to access your Bitcoin wallet or other digital assets, your wealth could be lost permanently. In fact, millions of dollars in Bitcoin have already been lost due to forgotten keys or inadequate estate planning. The Cryptocurrency Challenge: Securing and Sharing Your Keys The most important step in ensuring your cryptocurrency is accessible to your heirs is safeguarding your private keys . These keys are the keys to your digital wallet, and without them, nobody—not even the most skilled hacker—can access your coins. Here’s the catch: Private keys are not like regular bank account login details. If you lose your private key, there is no password recovery system to fall back on. Therefore, it is imperative that you store your keys securely and make sure your family knows how to access them when the time comes. What You Need to Do Now: Planning for Your Digital Wealth When it comes to planning for Bitcoin or other cryptocurrencies, there are a few practical steps you can take right now to ensure that your assets are passed down smoothly: 1. Create a Detailed Cryptocurrency Inventory : List all of your cryptocurrency holdings, including any Bitcoin, Ethereum, Litecoin, and other tokens you own. Don’t forget to include where these assets are stored (whether on a hardware wallet, a software wallet, or an exchange platform like Coinbase). 2. Store Your Private Keys Securely : Your private keys are the cornerstone of your crypto holdings. There are multiple ways to store them securely: ○ Hardware wallets (such as Trezor or Ledger) are physical devices that store your keys offline, providing the highest level of security. ○ Paper wallets involve printing out the private key and storing it in a safe location. ○ Password managers can also securely store private keys, but make sure the password manager itself is protected by multi-factor authentication. 3. Whichever method you choose, make sure your family knows where to find these keys. 4. Designate a Trusted Executor for Your Cryptocurrency : A digital executor is someone you trust to manage your digital assets upon your passing. This person should have clear instructions on how to access your crypto holdings. You can even choose a backup executor in case your first choice is unavailable. By taking proactive steps—creating an inventory of your crypto holdings, securing your private keys, designating a trusted executor, and communicating your plans with your family—you can ensure that your digital wealth is passed on seamlessly to the next generation. The future of money is digital, but the future of your wealth doesn’t have to be uncertain. Start planning today to secure your cryptocurrency legacy for tomorrow. Ryan Villano is an attorney at Farrar and Williams PLLC which is conveniently located at 1720 Higdon Ferry Rd., Hot Springs, AR .

When most people hear the words “estate planning,” they picture millionaires, complicated trusts, or stacks of legal paperwork sitting in a banker’s office. In reality, estate planning is much simpler than that. At its core, it is about making life easier for the people you love during some of the hardest moments they may ever face. Unfortunately, many families do not realize how important planning is until a crisis happens. Over the years, I have seen the same issues arise again and again, and many of them could have been avoided with a little preparation. Here are some of the most common estate planning mistakes families make: 1. Thinking “I Don’t Have Enough Assets to Need a Plan” One of the biggest misconceptions is that estate planning is only for wealthy people. The truth is, if you own a home, have a bank account, life insurance, retirement savings, or even just personal belongings you care about, you already have an estate. Without proper planning, families are often left dealing with court proceedings, confusion, delays, and unnecessary expenses. Even modest estates can become complicated when there is no clear plan in place. 2. Waiting Too Long Many people intend to “get around to it someday.” Then someday becomes next year. Then the next. Estate planning is one of those things people tend to put off because it involves difficult conversations and uncomfortable topics. But incapacity can happen unexpectedly through illness, injury, or cognitive decline. A good estate plan is not just about death, it is also about protecting yourself while you are living. Documents like powers of attorney and healthcare directives can allow trusted family members to help manage finances or make medical decisions if you are unable to do so yourself. 3. Forgetting to Update Beneficiaries People often assume their will controls everything. However, many assets pass according to beneficiary designations instead. That includes life insurance policies, retirement accounts, and certain bank accounts. If those designations are outdated, assets may unintentionally pass to an unintended person regardless of what the will says. Reviewing beneficiaries every few years, especially after marriages, divorces, births, or deaths in the family, is extremely important. 4. Failing to Discuss the Plan with Family Sometimes the legal documents themselves are fine, but the family has no idea where anything is or what the person wanted. That lack of communication can create confusion, conflict, and hurt feelings. You do not necessarily need to share every financial detail with your children or relatives, but it is wise to let trusted people know:  1. Where important documents are located, 2. Who has been appointed to act on your behalf, 3. What your general wishes are. Clear communication often prevents future disputes. 5. Assuming “The Kids Will Work It Out” Sadly, families do not always work things out peacefully after a loved one passes away. Even close families can experience disagreements when grief, stress, finances, and uncertainty collide. Ambiguity often creates conflict. A thoughtful estate plan removes guesswork and gives families a roadmap during difficult times. Planning Is a Gift to Your Family If you have not reviewed your estate plan in several years, or if you have never created one at all, now is a good time to start the conversation. After all, planning ahead is one of the greatest gifts you can leave your family. If you have any questions about estate planning, please give me a call. I would be happy to speak with you about your situation and help you understand your options. Ryan Villano Farrar & Williams, PLLC 1720 Higdon Ferry Road Hot Springs, Arkansas 71913 (501) 525-4401.

There are certain conversations families tend to put off—not because they don’t care, but because they care deeply. Topics like aging, illness, finances, and end-of-life decisions can feel uncomfortable, even overwhelming. It’s often easier to say, “We’ll deal with that later.” The problem is, “later” has a way of becoming “too late.” In my work, I regularly see families forced into making urgent decisions during moments of crisis—after a hospitalization, sudden decline, or an unexpected diagnosis. In those situations, emotions are high, time is limited, and options can be more restricted. What could have been a thoughtful, planned conversation becomes a rushed and stressful one. Here are some of the most common conversations families avoid—and why having them early can make all the difference. “What happens if you can’t make decisions for yourself?” No one likes to think about losing independence. But without a plan in place, families may have no legal authority to help when it matters most. This can lead to court involvement, delays, and added expense. A simple discussion about who should step in—and putting the proper documents in place—can prevent a great deal of difficulty. “How will care be paid for?” Long-term care is expensive, and many families underestimate the cost. Avoiding the financial conversation doesn’t make the issue go away, it just limits the available options later. Talking openly about savings, income, and planning strategies allows families to protect assets and reduce stress down the road. “Where do you want to live if you need help?” Some individuals prefer to stay at home as long as possible, while others are open to assisted living or nursing care. Without discussing these preferences in advance, families are left guessing—and sometimes disagreeing—during critical moments. Clear communication helps ensure that decisions reflect the individual’s wishes. “Who will take on responsibility?” Caregiving is a significant commitment, and assumptions can lead to tension. One family member may expect another to step in, only to find they are unable or unwilling. Having an honest conversation about roles and expectations can prevent resentment and confusion later. “What are your wishes at the end of life?” This is often the hardest conversation of all. Yet understanding someone’s wishes regarding medical care, quality of life, and end-of-life decisions is one of the greatest gifts a family can receive. It provides clarity and peace of mind during incredibly difficult times. Why these conversations matter Avoiding these topics doesn’t protect families, it leaves them unprepared. On the other hand, having these discussions early allows for thoughtful decision-making instead of rushed choices, greater control over legal and financial outcomes, reduced conflict among family members, and peace of mind for everyone involved. These conversations don’t have to happen all at once, and they don’t have to be perfect. What matters is starting. A simple way to begin You don’t need a formal setting or a detailed plan. Sometimes it starts with a simple question: “If something unexpected happened, what would you want us to do?” From there, the conversation can grow naturally over time. Planning ahead isn’t about expecting the worst, it’s about making sure that, no matter what happens, your family is prepared, protected, and able to support one another with clarity and confidence.  Because the hardest conversations are often the ones that matter most.

One of the most common concerns I hear from clients is the cost of long term care. Nursing home care can exceed $7,000 to $9,000 per month in Arkansas, and many families worry that a lifetime of savings could disappear quickly if care becomes necessary. Fortunately, there are planning tools available that can help protect assets while still allowing individuals to qualify for long term care Medicaid benefits when needed. One of the most effective tools is an irrevocable trust. What Is an Irrevocable Trust? An irrevocable trust is a legal arrangement where a person transfers ownership of certain assets into a trust that cannot be easily changed or revoked. Once assets are placed into the trust, they are no longer legally owned by the person who created it. Instead, the trust holds and manages those assets for the benefit of designated beneficiaries. Because the person who created the trust no longer owns those assets, they may not be counted when determining eligibility for Medicaid long term care benefits, provided the trust was established early enough. Understanding the Five Year Look Back Period Medicaid has strict rules designed to prevent individuals from transferring assets at the last minute simply to qualify for benefits. One of the most important rules is known as the five year look back period. When someone applies for long term care Medicaid, the state reviews all financial transactions made during the previous five years. If assets were transferred or gifted during that time without receiving fair market value in return, Medicaid may impose a penalty period during which benefits are delayed. This is why advance planning is so important. Assets placed into an irrevocable trust more than five years before applying for Medicaid are generally outside the look back period and may not affect eligibility. How Irrevocable Trusts Can Help When used properly, an irrevocable trust can provide several advantages: It can protect certain assets, such as a home or investment accounts, from being spent down on nursing home costs. It allows families to preserve assets for children or other beneficiaries. It can provide peace of mind knowing that long term care needs have been considered in advance. It is important to understand that irrevocable trusts are not appropriate for every situation, and they require careful planning. Once assets are transferred into the trust, the person creating it generally cannot take those assets back. Planning Before a Crisis The key takeaway is that Medicaid planning works best when done early. Waiting until someone is already in a nursing home or facing immediate long term care needs can limit the available options.  If you have questions about long term care planning, irrevocable trusts, or Medicaid eligibility, give me a call. I would be happy to speak with you about your situation and help you understand your options. Ryan Villano Farrar & Williams, PLLC 1720 Higdon Ferry Road Hot Springs, Arkansas 71913 (501) 525-4401

For many people, the phrase estate planning conjures images of sprawling estates, complex trusts, and wealthy families and individuals. In reality, estate planning is something almost every adult should consider, regardless of income or asset level. At its core, estate planning is about control, protection, and peace of mind for you and for the people you care about most. Estate planning involves making legal arrangements for what happens to your property, finances, and personal decisions if you pass away or become unable to manage your affairs. Without a plan in place, those decisions are often left to the courts, state law, or family members who may not agree on what should be done. What Happens Without a Plan When someone dies without an estate plan, their estate is typically handled through probate, which is a court-supervised process that determines who inherits property, who pays debts, and who has authority to act on behalf of the estate. While probate is not always inappropriate or avoidable, it can be time-consuming, costly, and emotionally draining for families, particularly when no clear instructions exist. Incapacity planning is another commonly overlooked issue. If a person becomes ill or injured and is unable to make decisions, a court may appoint a guardian or conservator to manage financial or personal affairs. With proper planning, this process can often be avoided entirely. The Core Pieces of an Estate Plan A basic estate plan often includes several key documents: A Will , which directs how property should be distributed and who should manage the estate Powers of Attorney , which allow a trusted individual to handle financial or legal matters if you are unable to do so Healthcare Directives , which outline medical wishes and appoint someone to make healthcare decisions on your behalf Trusts , in certain situations, which can be used to manage assets, protect beneficiaries, or reduce court involvement Estate planning is not a one-size-fits-all process. A young professional, a married couple, a blended family, and a retiree will all have different needs. The goal is clarity, not unnecessary complexity. More Than Money While finances are an important part of the process, estate planning involves far more than deciding who receives what. It allows parents to nominate guardians for minor children, helps protect beneficiaries with special needs, and provides guidance that can prevent family conflict during an already difficult time. Estate planning also gives individuals the opportunity to plan for long-term care, nursing home expenses, and medical decision-making. These are issues that affect far more families than many expect. When to Start and When to Update  The best time to create an estate plan is before you need one. Major life events such as marriage, divorce, the birth of a child, purchasing property, or changes in health are all signs that a plan should be created or reviewed. Even an outdated plan is often better than no plan at all, but regular updates are essential to ensure documents reflect current wishes and circumstances. Peace of Mind for the Future Estate planning is ultimately an act of responsibility and care. It reduces uncertainty, eases stress for loved ones, and ensures that your wishes, rather than default legal rules, guide important decisions. No matter your age or financial situation, having a thoughtful estate plan in place can make a meaningful difference. It is not about preparing for the worst. It is about protecting what matters most. Ryan F. Villano is an associate attorney at Farrar & Williams, PLLC, a law firm focusing its practice on trusts, estate planning, and elder law. The firm is located at 1720 Higdon Ferry Road, Suite 202, Hot Springs, Arkansas. For more information or to schedule a complimentary 30-minute estate planning consultation, call (501) 525-4401 or email ryan@farrarwilliams.com.

If you pass away in Arkansas without leaving a valid will, you are considered to have died “intestate.” In that case, Arkansas intestacy laws, not your personal wishes, control how your property is divided, who manages your estate and who cares for your minor children.  Under Arkansas law, the distribution of property without a will depends on your family situation. If you are married with children, your spouse does not automatically receive everything. Instead, your spouse typically inherits one-third of your personal property and a life estate in one-third of your real estate, while the remainder passes directly to your children in equal shares. If you are married but have no children, your spouse may inherit all of your personal property and a life estate in your real estate, but if your parents, siblings, or nieces and nephews are living, they may also inherit part of your estate. If you have children but no surviving spouse, your entire estate passes to your children in equal shares, with grandchildren inheriting their parent’s share if a child has already passed away. Blended families face unique challenges when it comes to estate planning, which makes having a will especially important. In Arkansas, stepchildren do not inherit from a stepparent under intestacy laws. This means that if you die without a will, your stepchildren will not receive any part of your estate, even if you raised them as your own or intended for them to share equally with your biological children. Similarly, without clear planning, children from a prior marriage and a current spouse may end up in conflict over how property is divided. A carefully drafted will allows you to provide for both your spouse and all children, biological and step, according to your wishes. In addition to determining who inherits your property, intestacy also affects who manages your estate. If you have a will, you get to appoint an executor, also called a personal representative, to handle probate, pay debts and distribute your assets. Without one, the court appoints someone, often a surviving spouse, adult child, or another relative. This can create delays, additional expenses, and sometimes conflict if family members disagree over who should serve. Perhaps the most serious consequence of dying without a will involves your minor children. A will allows you to designate a guardian, someone you trust to raise your children if something happens to you. Without that guidance, the court must decide who will serve as guardian, and the result may not reflect your wishes. The burden on your family can be significant when there is no will in place. Fortunately, these problems are preventable. By creating a valid Arkansas will, you can decide exactly who should inherit your property, appoint a trusted person to manage your estate, and choose the guardian who will raise your children. Even better, a comprehensive estate plan that includes not only a will but also trusts, powers of attorney and health care directives can provide further protection and peace of mind. Bottom line: If you die without a will in Arkansas, state law decides what happens, and the results may not be what you intended. Taking the time to create a will ensures that your wishes are followed, your family is protected, and your legacy is preserved. Ryan Villano is an attorney at Farrar and Williams PLLC which is conveniently located at 1720 Higdon Ferry Rd., Hot Springs, AR. To discuss your estate planning needs or to schedule a consultation, give us a call at 501525-4401 or visit our website at www.farrarwilliams.com.

Many people make costly estate planning mistakes when it comes to individual retirement accounts. Unlike other assets, IRAs and 401(k)s are not typically covered by a will or a standard type of trust. Instead, the funds go to inheritors according to beneficiary designation forms that are on file with the IRA custodian. Oftentimes individuals do not know who is listed on their beneficiary forms because the account and beneficiary designations were created many years ago.  It is a good idea to make sure all of your beneficiary forms are in order and up to date. You should check the designation on file to make sure it’s what you intend. You should also be sure to name both primary and contingent beneficiaries on your plans in case the primary beneficiary predeceases you. You can name any beneficiaries you want with an IRA or 401(k), including family members, friends, a trust or charity. Alternatively, with a 401(k) or other workplace plan, your spouse must give written permission for you to leave the account to anyone else. If there is no beneficiary form on file, your heirs must use the IRA custodian’s default policy. This may also mean someone other than the person you intended will receive your IRA (i.e. your heirs- at-law). Typically the custodian will award an IRA first to a living spouse and then to your estate. Sometimes the custodian may send it straight to the estate, which will cut short the tax benefits and most likely require a probate proceeding. If you list your children as beneficiaries, it is often a good idea to provide for “per stirpes” distributions (if the form allows this designation). This means that if your child predeceases you, their children would become the beneficiaries, instead of your other children, or the co-beneficiaries. Sometimes clients wish to leave their IRA to a trust to accept retirement assets. There can be many reasons for leaving your IRA to a trust, which include: • If your intended beneficiaries are minors. • If you are fearful of creditors or in-laws. • If you wish to control the cash flow to beneficiaries with money management problems. • Second-marriage planning. Many complex IRS rules govern IRA trusts. Therefore, it is critical that you speak with your trusted advisors to ensure that an IRA trust meets your goals as well as the government criteria. Regardless of who you ultimately decide to name as beneficiary of your retirement accounts or plans, it is crucial that those assets make their way to your intended beneficiary. A proper beneficiary designation form should accomplish this. Wesley W. Harris is an associate attorney at Farrar & Williams, PLLC, a law firm limiting its practice to trusts, estate planning, and elder law, located at 1720 Higdon Ferry Road, Suite 202, and can be contacted at 501-5254401 or by email at wesley@farrarwilliams. com. The firm’s website is farrarwilliams. com.

It is a reality that as we live longer, the need for long-term medical care continues to rise. A question I often get asked is, “How do we plan for the cost of long-term care, including nursing home costs?” Long-term care insurance is by far the preferred option, since it offers the possibility of keeping people out of nursing homes by paying for care in the home or in assisted living facilities. Statistics show that the vast majority of people do not purchase long-term care insurance and are forced to rely on other alternatives to pay for long-term care costs. Unfortunately, the other alternatives often do not include care in the home and instead require the long-term care to be in a nursing home. Without insurance, there are two primary options for the payment of nursing home costs. First, a person may have sufficient income and assets to pay for such costs on a private pay basis. However, since such costs average in excess of $6,500 per month, the private pay option is not a long-term solution for most people. The second option is the Long Term Care Medicaid Program. Since this is a government benefit program, there are asset and income requirements to be met in order to qualify. The rules differ depending on if you are single or married. As a result of the eligibility determination process, many clients structure their estate plans in a way to enhance their eligibility in the event such costs become necessary. The remainder of this article will focus on one of the more popular estate planning tools used to enhance Medicaid eligibility for long-term care costs. A special type of trust often referred to as an “irrevocable trust” is a popular planning option. I prefer to call this trust a Medicaid Asset Protection Trust. It is important to note that most trusts that are set up are revocable trusts which offer no protection from nursing home costs. In most cases, in order to gain eligibility, one must either give away assets or structure assets in a MAPT. Gifting assets to your children is usually a poor option, since those assets then become exposed to the children’s debts and liabilities, divorces, etc. For these reasons, the MAPT may be a preferred option as it leaves you in control. The primary disadvantage of the MAPT is that it limits you and your spouse to the income earned on the trust assets, as the principal is restricted and protected for the benefit of your remainder beneficiaries, usually your children. The MAPT does allow you to have full use and benefit of your home and real property, including the right to sell it (provided the proceeds stay in the trust). As with most asset transfers the creation of a MAPT is subject to a Medicaid “look back” of five years. This means the trust should be created and funded at least five years prior to applying for any Medicaid benefits. It is important to note that most clients who set up a MAPT elect to keep a sufficient amount of assets out of the trust so they will have full access and control to a comfortable level of assets for their lifestyle. IRA’s and other retirement plans are usually left out of a MAPT. In summary, planning for the cost of long-term care is an important issue that many people need to consider when setting up their estate plan. This type of planning is very specialized and should only be implemented with the help of an experienced elder law attorney.