Mediation In High Net Worth Divorces And Inheritance Litigation

Mediation is a form of alternative dispute resolution which offers a confidential, cost-effective, and dignified path to sort out divorces with substantial assets, and estate, trust and probate lawsuits, avoiding the financial and emotional toll of prolonged litigation.  Mediation can be utilized before litigation begins, or after it has already started. 

Why Mediation Matters in Complex Family Feuds Over The Family Fortune

High net worth divorces and inheritance litigation share a common challenge---complex financial structures intertwined with deeply personal relationships.  Traditional litigation often escalates conflict, drains resources, and exposes private matters to public scrutiny.  Mediation, by contrast, provides a structured yet flexible process that prioritizes resolution, privacy, and efficiency.

Mediation in High Net Worth Divorce

• Privacy and Discretion:  Court proceedings are public, but mediation remains confidential—critical for families with reputations or business interests at stake.

• Efficient Asset Division:  Complex portfolios—businesses, real estate, investments—can be evaluated with the help of financial experts during mediation, ensuring equitable distribution without lengthy court battles.

• Cost Savings:  Litigation can cost tens or even hundreds of thousands of dollars in attorney fees and expert testimony.  Mediation reduces expenses by streamlining negotiations.

• Control and Flexibility:  Couples retain decision-making power rather than leaving outcomes to a judge.  This autonomy often leads to more creative, tailored agreements.

• Preservation of Relationships:  Especially important when children, family businesses, or long-term partnerships are involved.  Mediation fosters collaboration rather than adversarial confrontation.

Mediation in Inheritance Litigation

Inheritance disputes often pit siblings, heirs, step-parents, step-children, or extended family against each other. Mediation can transform these conflicts by:

• Clarifying Intentions:  Mediators help interpret and achieve consensus regarding wills, trusts, and estate plans, reducing misunderstandings.

• Reducing Emotional Strain:  Family disputes over inheritance are emotionally charged, and mediation provides a neutral space to de-escalate tensions.

• Preserving Family Wealth:  Litigation can erode estates through legal fees and delays.  Mediation can protect assets for future generations.

• Maintaining Family Harmony:  By encouraging dialogue, mediation helps prevent permanent rifts among heirs.

Conclusion

Mediation is not just a softer alternative to litigation—it is a strategic, efficient, and dignified solution for families navigating high net worth divorces and inheritance disputes. By combining confidentiality, cost-effectiveness, and flexibility, mediation empowers families to resolve conflicts while safeguarding both wealth and relationships.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Understanding Procurement Under Arkansas Law

In estate, trust, and probate litigation, “procurement” generally refers to situations where a beneficiary is alleged to have actively participated in the creation of a will, trust, deed, beneficiary designation, etc. in a way that benefits them. When procurement is proven, in Arkansas the burden of proof may shift to the beneficiary to show that the document was validly executed and free from undue influence. 

What Is Procurement?

• Definition:  Procurement occurs when a beneficiary is directly involved in drafting, preparing, or arranging for the execution of a testamentary or similar documents that benefits them in some way (perhaps they receive a parcel of property, gain a larger share under a will or trust, become the payable-on-death or other beneficiary of an account, etc.).

• Legal significance:  Arkansas courts treat procurement as a “red flag” for undue influence. If procurement is established, the burden of proof shifts to the beneficiary to demonstrate that the testator acted freely and voluntarily.

Shifting Burden of Proof

• Normally, the challenger must prove undue influence or lack of capacity, which can be difficult. 

• However, if procurement is shown, the presumption can flip and the beneficiary may be required to prove the will, trust, deed, beneficiary designation, etc. is valid.

• This shift is critical in litigation because it forces the alleged influencer to defend their involvement rather than leaving the challenger to prove misconduct.

Examples Courts Often Consider Evidence of Procurement

• Drafting or arranging the will/trust:  Beneficiary hires the attorney or provides instructions.

• Selecting witnesses or notary:  Beneficiary chooses who will be present at execution.

• Transporting the testator:  Beneficiary drives the testator to the lawyer’s office or execution ceremony.

• Presence at execution:  Beneficiary is in the room when the will or trust is signed can be viewed with suspicion.

• Knowledge of contents:  Beneficiary knows the terms of the document before execution.

• Isolation of testator:  Beneficiary limits access to the testator by other family members and loved ones.

• Payment of legal fees:  Beneficiary pays for the attorney who drafts the will.

The foregoing list is by no means exhaustive, and many other facts and circumstances can evidence and provide a basis for procurement.

Situations That Might Not Constitute Procurement

• Mere presence:  Simply being in the room when a will is signed, without more, may not be enough.

• General assistance:  Helping an elderly parent with transportation or scheduling appointments, without directing the legal process, may not rise to procurement.

• Family involvement:  Children often assist aging parents; courts distinguish between normal caregiving and manipulative involvement.

• Beneficiary status alone:  Being named in a will or trust is not procurement unless coupled with active participation in its creation.

Litigation Implications

• Strategic leverage:  Alleging procurement can shift the burden of proof, giving challengers a stronger legal position and making a hard case easier to prove.

• Fact-intensive inquiry:  Courts generally examine the totality of the circumstances---who contacted the lawyer, who paid fees, who was present, whether the testator was isolated, etc.---rather than focusing upon one or two single facts or circumstances.   

• Common disputes:  Procurement claims often arise in blended families, caregiver-beneficiary relationships, or cases involving sudden changes to estate plans.

Conclusion

Procurement under Arkansas law can be a powerful doctrine in estate, trust, and probate litigation.  It basically recognizes that when a beneficiary plays too large a role in shaping the outcome of the asset owner’s document disposing of property, the fairness of that instrument is suspect.

By shifting the burden of proof, Arkansas courts ensure that beneficiaries must demonstrate the absence of undue influence.  For litigants, understanding what facts and circumstances do—and do not—constitute procurement is essential to building or defending a case in some types of inheritance disputes.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Discovery Of Assets And Other Issues In A High Net Worth Asset Divorce

In Arkansas high net worth divorce cases, discovery tools such as interrogatories, requests for production, requests for admissions, subpoenas duces tecum, and depositions are critical for uncovering marital income, hidden money, and financial and other misconduct.  Each method under the Arkansas Rules of Civil Procedure serves a unique role in identifying, verifying, and challenging information and documentation. 

These tools are indispensable for tracing assets, distinguishing marital from non-marital property, and uncovering financial irregularities.  Below is a brief explanation of each method of discovery: 

Interrogatories (Rule 33 of the Arkansas Rules of Civil Procedure)

Definition:  Written questions served on the opposing party, requiring sworn written answers.

Exemplary uses in divorce:  Identify sources of income (salary, bonuses, dividends).  Ask about ownership interests in businesses or partnerships.  Probe for gambling habits, offshore accounts, or transfers to third parties, including extramarital partners.

Strategic value:  Forces the spouse to commit to specific answers that can later be challenged if inconsistent.

Requests for Production (Rule 34 of the Arkansas Rules of Civil Procedure)

Definition:  Demands for documents, records, or electronically stored information.

Exemplary uses in divorce:  Obtain bank statements, credit card records, tax returns, and investment portfolios.  Request business financials, real estate deeds, and loan documents.  Trace dissipation of marital funds on paramours or gambling.

Strategic value:  Provides the paper trail necessary to prove hidden accounts or undisclosed movement of money, and valuing assets.

Requests for Admissions (Rule 36 of the Arkansas Rules of Civil Procedure)

Definition:  Written requests asking the opposing party to admit or deny specific facts.

Exemplary uses in divorce:  Confirm ownership of certain accounts or properties.  Establish whether funds were transferred to relatives or offshore entities.  Narrow disputes by forcing admissions about marital vs. non-marital property.

Strategic value:  Simplifies trial by locking in uncontested facts, authenticating documents, and exposing dishonesty.

Subpoenas Duces Tecum (Rule 45 of the Arkansas Rules of Civil Procedure)

Definition:  Court orders compelling third parties to produce documents or testify.

Exemplary uses in divorce:  Obtain records directly from banks, casinos, or employers.  Secure evidence of offshore accounts or gambling activity.  Access business records when one spouse controls the enterprise.

Strategic value:  Circumvents stonewalling by the opposing spouse and ensures independent verification.

Depositions (Rule 30 of the Arkansas Rules of Civil Procedure)

Definition:  Oral questioning of parties or witnesses under oath, recorded by a court reporter.

Use in divorce:  Cross-examine a spouse about suspicious transfers or hidden accounts.  Question accountants, business partners, or financial advisors.  Explore inconsistencies between testimony and documents.

Strategic value:  Provides real-time insights into credibility, assessment of parties and third parties as testifying witnesses at trial, and can expose evasive behavior.

Conclusion

Discovery under Arkansas law is the backbone of high net worth divorce litigation. By strategically using interrogatories, requests for production, requests for admissions, subpoenas duces tecum, and depositions, attorneys can uncover hidden assets, prove dissipation of funds, and ensure equitable division of property. The process is fact-intensive, but when leveraged correctly, it exposes the financial truth behind complex marital estates.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Why Relatively Few Attorneys Focus Upon Estate, Trust, and Probate Litigation As A Primary Focus Of Their Law Practice

Inheritance litigation is a unique area of practice which blends technical law, courtroom advocacy, and emotionally-charged family disputes.  Some attributes of this niche are as follows:

• Highly Specialized Knowledge

Estate and trust litigation requires intimate familiarity with the probate code, trust code, related statutes, rules of civil procedure and evidence, prior court decisions from the Arkansas Court of Appeals and Supreme Court, and experience with the unique issues arising in these cases.  While many attorneys focus on estate planning (drafting wills, trusts, etc.), not nearly as many deal with contested inheritance disputes. 

• Emotional Complexity

These wealth wars often involve family members fighting over inheritances and allegations of undue influence, fraud, incompetency or diminished capacity, procurement, forgery, and similar claims.  Attorneys must navigate not only the law but also volatile family dynamics, which can be draining and difficult.  We call these cases “divorces on steroids.”

• Time and Cost Intensive

Contested probate cases can sometimes last many months or years, requiring extensive discovery, forensic accountants and other types of expert witnesses, and trial preparation.  Many lawyers prefer other types of litigation, or no litigation at all, such as transactional estate planning work which is also challenging but more predictable and far less adversarial.

• Limited Market

Compared to areas like personal injury, family law, and criminal defense, inheritance litigation involves a much smaller niche.  While many attorneys dabble in these cases, the number of attorneys in Arkansas who focus primarily---much less exclusively---upon estate, trust and probate disputes is very small.

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Few attorneys choose the unique career path of inheritance litigation, but those who do can be invaluable when disputes arise over wills, trusts, estates, powers of attorney, beneficiary designations, etc.  By carefully researching the attorney’s experience, specialization, credentials, and strategy, you can find the right advocate to protect your interests during one of life’s most complex legal challenges.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Understanding Prenuptial And Postnuptial Agreements In High Net Worth Divorces

Prenuptial and postnuptial agreements frequently rear their head in high net worth divorce cases.  They are entered into so as to protect complex assets, reduce conflict, and provide clarity when significant wealth is at stake.  Below is a general overview:

• Prenuptial Agreements (“Prenups”)
  A prenuptial agreement is signed before marriage.  It outlines how assets, debts, and income will be divided if the marriage ends.  For high net worth couples, this often includes business interests, investments, real estate, and future earnings.

• Postnuptial Agreements (“Postnups”)
  A postnuptial agreement is signed after marriage.  It serves a similar purpose but is often used when circumstances change—such as one spouse starting a business, receiving a large inheritance, or for whatever reason when the couple wants to clarify financial arrangements mid-marriage.

Why They Matter in High-Net-Worth Divorces

• Complex Asset Portfolios:  Wealthy couples often own multiple properties, business interests, investment accounts, and luxury assets.  Without a prenup or postnup, dividing these can lead to prolonged litigation.

• Protection of Family Wealth:  Prenups and postnups can provide predictability and safeguard family businesses, generational wealth, or inheritances from being divided in divorce. 

• Income and Future Earnings:  High earners must consider not only current assets but also future income.  Income earned during marriage may likely be subject to division unless addressed in an agreement.

• Spousal Support / Alimony:  These agreements can set terms for spousal support, preventing disputes over lifestyle maintenance or long-term financial obligations.

• Children from Prior Marriages:  Agreements can protect assets intended for children from previous relationships, ensuring inheritance plans remain intact.

Key Considerations When Drafting

• Full Financial Disclosure:  Courts require transparency.  Hidden assets or incomplete disclosure can invalidate the agreement. 

• Fairness and Voluntariness:   Agreements must be fair and entered into willingly.  Coercion or extreme imbalance may render them unenforceable.  A prenup should be entered into well before the wedding, not right before the couple is walking down the aisle.

• Legal Representation for Both Parties:  Each spouse should have independent counsel to ensure fairness and avoid claims of undue influence.

• State Laws Matter:  Divorce laws vary widely.  What is enforceable in one state may not be in another, making local expertise essential. 

Benefits in High-Net-Worth Divorce

• Reduces Litigation Costs:  Clear agreements prevent drawn-out court battles.

• Preserves Privacy:  Sensitive financial details remain out of public court records.

• Provides Certainty:  Couples know in advance how assets will be divided.

• Protects Business Interests:  Prevents disruption of companies or partnerships during divorce.

Final Thoughts

For high net worth couples, prenuptial and postnuptial agreements are not just legal documents—they are strategic safeguards.  They protect wealth, reduce emotional strain, and ensure fairness in divorce proceedings.  While no one enters marriage expecting divorce, these agreements provide peace of mind and stability when significant assets are involved.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Resignation Of A Trustee Under The Arkansas Trust Code: Navigating Liability And Releases

Statutory Framework for Trustee Resignation 

The Arkansas Trust Code, at Ark. Code Ann. § 28-73-705, governs the issue of a trustee’s voluntary resignation:

• Notice Requirement:  A trustee may resign by giving at least 30 days’ notice to qualified beneficiaries, the settlor (if living), and co-trustees.

• Court Approval:  Alternatively, resignation may be approved by a court, which may impose conditions to protect trust property.

• Liability Continuation:  However, a trustee’s resignation does not discharge liability for prior acts or omissions.  Any sureties on the trustee’s bond remain liable for breaches committed before resignation.

• Applicability:  These rules apply to irrevocable trusts created on or after September 1, 2005, and revocable trusts that later become irrevocable.

Releases and Exculpation

Resignation often raises the question of whether a trustee can be released from liability. Arkansas law provides several mechanisms, but with strict limits:

• Exculpatory Clauses in Trusts:  Trust instruments may include clauses limiting trustee liability.  However, under Ark. Code Ann. § 28-73-1008, such clauses are unenforceable if they attempt to relieve liability for bad faith, reckless misconduct, or willful breaches of trust.

• Beneficiary Releases:  Under Ark. Code Ann. § 28-73-1009, beneficiaries may consent to or ratify trustee conduct, or release a trustee after full disclosure.  But, releases obtained through improper influence or without adequate information are invalid.

• Court-Ordered Releases:  Courts may condition resignation approval on an accounting or other protective measures, ensuring beneficiaries have recourse if misconduct is discovered later.

Practical Considerations for Trustees

Trustees considering resignation should keep in mind:

• Accounting Obligations:  Before stepping down, trustees should provide a final accounting to beneficiaries.  This transparency strengthens the enforceability of any release.

• Negotiated Releases:  Trustees often seek written releases from beneficiaries in exchange for resignation.  These documents should be carefully drafted to comply with Arkansas law.

• Risk Management:  Even with releases, trustees remain exposed to liability for undisclosed breaches.  Proper recordkeeping and disclosure are essential.

Example Scenario

Imagine a trustee of a family trust wishes to resign due to health issues.  They provide 30 days’ notice to beneficiaries and co-trustees.  Before resignation becomes effective, they deliver a final accounting.  Beneficiaries sign a release acknowledging the accounting and waiving claims.  While this release offers protection, it cannot shield the trustee from liability if later evidence shows intentional misconduct.

Conclusion

Trustee resignation under the Arkansas Trust Code is not a clean break.  Liability persists unless properly addressed through statutory compliance, transparent accountings, and carefully drafted releases.  Trustees should view resignation as a process requiring both legal precision and beneficiary cooperation.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Valuing And Dividing A Professional Practice In An Arkansas High Net Worth Divorce

Divorce can be complicated when one or both spouses own a professional practice. Whether it’s a medical clinic, law firm, dental office, accounting practice, or other type of professional business, they often represent both a livelihood and a significant marital asset. In Arkansas, courts must determine how to value the practice and then decide how to fairly divide or account for it in the divorce settlement. 

Legal Framework in Arkansas

• Marital Property:  Under Arkansas law, most property acquired during the marriage is considered marital property, subject to equitable division between the divorcing spouses.

• Professional Practices:  Even if only one spouse is licensed to operate the practice, the practice itself (including goodwill, equipment, and accounts receivable) may be considered marital property if it was built during the marriage.

• Equitable Division:  Arkansas courts divide property equitably, which usually but does not always mean equally—it means fairly, based on the facts and circumstances.

How a Professional Practice Is Valued

Valuing a professional practice is complex and often requires expert testimony. Common valuation methods include:

• Asset-Based Approach:  Focuses on tangible assets like office equipment, furniture, and accounts receivable.  Useful for practices with significant physical assets.

• Income Approach:  Examines the practice’s earning potential, often using capitalization of earnings or discounted cash flow.  Reflects the ongoing profitability of the practice.

• Market Approach:  Compares the practice to similar businesses that have been sold.  Can be difficult if there are few comparable sales in the region.

• Goodwill Consideration:  Personal Goodwill (tied to the professional’s reputation) is generally not divisible in Arkansas.  However, Enterprise Goodwill (value of the practice beyond the individual, such as brand recognition or staff) may be considered marital property.

Options for Dividing or Dealing with the Practice

Because one spouse usually cannot simply “hand over” part of a professional practice, Arkansas courts and couples often use creative solutions:

Buyout Arrangements

• The professional spouse keeps the practice.

• The non-professional spouse receives compensation (cash, property, or a structured payout) equal to their share of the marital value.

Offsetting Assets

• Instead of splitting the practice, the non-professional spouse may receive other marital assets (e.g., real estate, retirement accounts, etc.) to balance the division.

Structured Payments

• Courts may order ongoing payments to the non-professional spouse, similar to alimony (spousal support), to reflect their share of the practice’s value.

Co-Ownership (Rare)

• In very limited cases, spouses may continue co-owning the practice, though this is uncommon due to licensing restrictions and practical difficulties.

Practical Challenges

• Licensing Restrictions:  Only licensed professionals can own or operate certain practices (e.g., law firms, medical clinics, etc.).

• Valuation Disputes:  Experts may disagree on the value of the business, leading to contested litigation.

• Emotional Stakes:  The professional practice often represents years of effort, making negotiations highly charged.

Conclusion

Valuing and dividing a professional practice in an Arkansas divorce requires careful consideration of both financial and legal factors. Courts rely on expert valuations, distinguish between personal and enterprise goodwill, and often use buyouts or asset offsets to achieve fairness. For professionals and their spouses, understanding these options can help protect both the practice and the equitable distribution of marital property.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

The Role Of A Forensic Accountant In Inheritance Lawsuits

Inheritance disputes over estates and trusts can quickly become contentious. When large sums of money, valuable property, or complex investments are involved, beneficiaries may suspect mismanagement, fraud, or unfair distribution.  Fiduciaries may contend that nothing is amiss. 

In these cases, a forensic accountant often becomes a critical ally, helping to untangle financial complexities and ensure transparency.  A forensic accountant can be invaluable in inheritance lawsuits involving estates or trusts because they investigate financial records, uncover fraud or mismanagement, and provide expert testimony that clarifies complex financial issues for the court.

What Is a Forensic Accountant?

A forensic accountant is a financial professional trained to investigate, analyze, and interpret complex financial data. Unlike traditional accountants, they specialize in detecting fraud, tracing assets, and presenting findings in legal disputes. Their work often bridges the gap between accounting and law, making them often essential in inheritance litigation.

How They Help in Estate and Trust Disputes

• Investigating Mismanagement of Assets:  Trustees and executors have fiduciary duties to manage assets responsibly. A forensic accountant can review financial records to determine whether funds were misused, investments mishandled, or distributions improperly made.

• Tracing Hidden or Misappropriated Assets:  In some cases, assets may be concealed or transferred improperly. Forensic accountants use investigative techniques to track down missing funds, offshore accounts, or undervalued property.

• Analyzing Complex Financial Structures:  Estates often include businesses, investment portfolios, or multiple properties. Forensic accountants can provide valuations and clarify the financial picture, ensuring fair division among heirs.

• Detecting Fraud and Elder Exploitation:  Sadly, inheritance disputes sometimes involve exploitation of elderly individuals. Forensic accountants can identify suspicious transactions, such as sudden withdrawals or unusual transfers, that may indicate undue influence or fraud.

• Providing Expert Testimony:  Courts rely on forensic accountants to explain complicated financial matters in clear, understandable terms. Their testimony can be pivotal in proving mismanagement or validating rightful claims.

Real-World Examples

• Trustee Mismanagement:  A forensic accountant uncovers that a trustee diverted funds for personal use, leading to restitution for beneficiaries.

• Business Valuation:  In an estate dispute involving a family-owned company, the forensic accountant provides an impartial valuation to ensure equitable distribution.

• Fraud Detection:  An accountant identifies a pattern of unauthorized withdrawals from an elderly parent’s account, strengthening the heirs’ case against exploitation.

Benefits of Using a Forensic Accountant

• Ensures transparency in estate administration.

• Protects beneficiaries from financial abuse.

• Provides objective evidence in court.

• Helps resolve disputes more efficiently, potentially avoiding prolonged litigation.

Conclusion

Inheritance lawsuits are often emotionally charged and financially complex. By employing a forensic accountant, families and courts gain a trusted expert who can uncover the truth, safeguard assets, and support fair outcomes.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

High Net Worth Divorces: What Sets Them Apart From Typical Divorces

1.     Complex Asset Portfolios 

• Unlike typical divorces, high net worth cases often involve successful businesses, multiple properties, vacation homes, investment portfolios, stock options, retirement accounts, and luxury assets such as art, cars, jewelry and collectibles.

• Valuing these assets accurately---and sometimes locating them---requires financial experts, appraisers, and sometimes forensic accountants.

2.     Business Ownership & Professional Practices

• Many affluent couples own businesses or professional practices (medical, dental, legal, etc.).  Dividing or valuing these entities is far more complicated than splitting a house or car.

• Decisions must balance fairness with the need to keep businesses operational.

3.     Tax Implications

• High net worth divorces carry significant tax consequences. Transfers of property, stock liquidation, or alimony arrangements can trigger large tax bills if not structured carefully.

• Tax attorneys and financial planners are often brought in to minimize liabilities.

4.     International Assets & Jurisdiction Issues

• Wealthy couples may hold assets across multiple states or countries, raising questions of jurisdiction and applicable laws.

• Offshore accounts, trusts, and international real estate add layers of complexity.

5.     Child Support & Spousal Support (Alimony)

• High net worth divorces often involve debates over lifestyle maintenance for children, as well as spouses with a lower income or perhaps no income.

• The stakes are higher because members of the household are accustomed to a certain standard of living.

6.     Privacy & Reputation Management

• High-profile individuals must manage public scrutiny and media attention. Protecting privacy through sealed records or confidential settlements becomes a priority.

• Reputation concerns can influence negotiation strategies.

7.     Longer Timelines & Higher Costs

• Because of the complexity, these divorces often take longer to resolve and involve higher legal fees than typical divorces. 

• Multiple experts—lawyers, accountants, appraisers, financial advisors—may be required, making the process resource-intensive.

Final Thoughts

High net worth divorces are not just about ending a marriage—they’re about untangling a financial empire. The stakes are higher, the process is more complex, and the need for specialized guidance is critical. Couples facing this situation must prepare for a divorce that can look more like business litigation and a corporate negotiation than a mere family matter.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Reviewing, Or Reeling In, The Principal's Agent Under A Power Of Attorney

In Arkansas, the Uniform Power of Attorney Act (Ark. Code Ann. § 28-68-101, et seq.) provides grounds for reviewing an agent’s conduct. A possible cause of action arises when an agent breaches fiduciary duties—such as acting outside the scope of authority, self-dealing, or failing to act in the principal’s best interest. Courts may intervene to compel an accounting, revoke authority, or impose liability for damages.

Understanding the Agent’s Fiduciary Duties

Under the Arkansas Uniform Power of Attorney Act, an agent is not simply a helper—they are a fiduciary. This means they must:

• Act in good faith and in accordance with the principal’s reasonable expectations.

• Avoid conflicts of interest unless expressly authorized.

• Preserve the principal’s estate plan to the extent known.

• Keep records of transactions conducted on behalf of the principal.

• Act loyally and prudently, prioritizing the principal’s financial and personal well-being.

When these duties are violated, the law recognizes a cause of action to challenge the agent’s behavior.

Possible Causes of Action

A principal, family member, or interested party may seek judicial review if they suspect misconduct. Common grounds include:

• Exceeding authority: For  example, creating or revoking a trust without specific authorization. 

• Self-dealing or misappropriation:  Using the principal’s funds for personal benefit.

• Failure to account:  Refusing to provide records of financial transactions.

• Neglect of duty:  Ignoring the principal’s needs or failing to act when required.

These claims can lead to remedies such as removal of the agent, restitution, or damages.

Judicial Oversight and Remedies

Arkansas courts have authority to:

• Compel an accounting of the agent’s actions.

• Suspend or terminate authority if misconduct is proven.

• Order restitution for losses caused by the agent’s breach.

• Award damages against the agent personally.

This judicial oversight ensures that the power of attorney remains a tool of protection, not exploitation.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Families Of Deceased Celebrities Have Wealth Wars Too

Rich celebrities---who one might assume would have sophisticated, ironclad estate planning documents in place to avoid estate disputes and facilitate post-death transfers of assets to their desired beneficiaries---are not immune from wealth wars.  Rather, even the families of famous musicians, actors, etc. occasionally engage in years-long battles over their deceased loved one’s money and property.  For example, below are 8 randomly-selected celebrity inheritance disputes:

1.  Prince:  The purple-loving musician died without a will in 2016, leaving 6 half-siblings but no spouse or living children.  A 6-year long legal battle, apparently with thousands of Court filings, resulted among his heirs (ultimately settling) over his $156 million estate because they could not agree how to manage the estate moving forward.

2.  Stan Lee:  After the Marvel Comic Books co-creator's death in 2018, his daughter J.C. Lee and other parties engaged in a 4-year battle over his estate, worth around $50 million.  She was accused of intellectual property theft and elder abuse, while Stan’s former business partners were accused of exploiting him for financial gain.

3.  Aretha Franklin:  After the legendary singer's death in 2018, she left an estate estimated to be worth about $80 million.  In the months that followed her death, numerous wills were discovered---some of them handwritten, some of them found under couch cushions, and all of them contradictory in parts---which resulted in confusion and years of litigation over who her intended beneficiaries really were. 

4.  James Brown:  The iconic singer's estate was involved in a 15-year long legal battle after his death in 2006.  He left a will naming numerous beneficiaries---including children, grandchildren, and charities---but various other claims were made by other alleged children and relatives leading to multiple lawsuits that were ultimately resolved in 2021.

5.  Whitney Houston:  After the acclaimed singer's death in 2012, her daughter, Bobbi Kristina Brown, inherited her estate and was her sole beneficiary according to a 1993 will.  However, Bobbi Kristina died in 2015, just 3 years after Whitney, resulting in a legal dispute among multiple people scrambling over who would inherit the assets:  Bobbi Kristina’s father (bad boy Bobby Brown); her maternal grandmother, Cissy Houston; Whitney’s brothers; and even Bobbi Kristina’s boyfriend at the time, Nick Gordon (later found civilly liable for her death in 2016, and in turn he later died of a drug overdose in 2020).

6.  Michael Jackson:  After the singer's untimely death in 2009, his estate became involved in multiple legal battles, including disputes between his family and the estate's executors over control of his assets (estimated to be hundreds of millions of dollars at a minimum) and a lawsuit filed by Quincy Jones for unpaid producer royalties.  His mother and 3 children were the beneficiaries of his estate, and the primary dispute was one in which his will was alleged to be fraudulent and not properly executed, claims ultimately rejected by the Courts.

7.  Robin Williams:  Following the actor's 2014 death from suicide, his widowed 3rd wife and his children from previous marriages were involved in a legal dispute over the interpretation of his estate planning documents.  The case ultimately settled, with both sides accusing the other of “greed,” and is a Hollywood example of one of the most common scenarios in estate and trust litigation, i.e., the children of the deceased locking horns with a subsequent spouse of the deceased. 

8.  Philip Seymour Hoffman:  After the actor's death in 2014 from a drug overdose, his estate was embroiled in legal battles involving will contests and disputes over the rights of his estate.  While understandably not wanting to leave behind “trust fund kids” without incentive to work, he left a will naming his girlfriend as sole beneficiary of his estate, trusting that she would purportedly provide for his children.  He also failed to have sound estate planning in place, subjecting his assets to millions of dollars of otherwise avoidable taxes.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Mediation As An Option In---Or As An Alternative To---Litigation In Estate, Trust And Inheritance Disputes

          Estate, trust, and inheritance litigation can be a complex process.  Family members are often involved in these disputes, and they may have strong emotions and conflicting interests.  Resolving these “wealth wars” can be challenging, and traditional court proceedings may not always be the best solution.

          Mediation has become an increasingly popular alternative for resolving disputes in these and all types of litigated matters, and here are few reasons why:

1.     Mediation is cost-effective

          Traditional court proceedings can be very expensive.  Mediation is often a more cost-effective solution.  Mediation can be completed faster, and the cost is far lower than full-blown litigation.  By avoiding lengthy court battles, and the discovery process leading up to trial, costs can be kept to a relative minimum.

2.     Mediation is less adversarial

          Inheritance disputes are uniquely emotionally-charged.  Litigation itself is inherently stressful and adversarial, which can further exacerbate emotions.  Mediation is far less adversarial, and it allows parties to work together to find a resolution that meets everyone's needs.

          This less adversarial approach can help reduce tensions, ease the overall dispute resolution process, and result in a win-win solution.  However, mediation requires everyone working in good faith to find a solution, and if one or more parties do not share that aim or are not invested in the process, then mediation will probably fail.

3.     Mediation is confidential

          The court process is generally public, and court documents are often available to the public over the Internet.  However, mediation is confidential, and the details can be kept private.  This can be an important consideration for families who wish to keep their disputes, or assets, confidential.

4.     Mediation is flexible

          Mediation is flexible, and the process can be tailored to meet the specific needs of the parties.  This flexibility allows for more creativity in finding a solution that works for everyone.  Mediation also allows for more informal discussions, which can help parties communicate more freely and come to an agreement that works best for everyone.

5.     Mediation is faster

          The court system can be notoriously slow, and litigation can take many months or even years to conclude.  Mediation is generally faster, and can typically be scheduled and completed in a matter of weeks or months.  This expedited process can reduce the amount of time and stress involved in the dispute resolution process.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Estate And Trust Litigation’s Resemblance To Family Law: “Divorces On Steroids”

Estate and trust litigation, and family law, may seem like two distinct areas of law, but in truth they share some significant similarities and parallels---perhaps that is why at least 75% of my clients and cases fall in these two legal fields.  Separate and distinct from the basic fact that they often involve family members fighting about money and property, below are a few key areas where the two areas overlap:

1.     Emotional Complexity

Both family law, and estate and trust litigation, frequently involve complex and emotionally-charged situations.  In family law, for instance, divorce, child custody, and child or spousal support issues can provoke strong feelings from all parties involved.  In estate and trust litigation, family members may likewise have passionate emotions when dealing with the death of a loved one or the distribution of an inheritance.  

Probably the two most common scenarios that I see in estate and trust litigation are (a) sibling disputes between brothers and sisters and (b) a deceased person’s children of the first marriage having disagreements with a subsequent spouse of the deceased person.  In both areas of law, it is important to understand the emotional complexity of the situation and work to find solutions that are fair and practical.

2.     Mediation And Alternative Dispute Resolution

Mediation, arbitration, and alternative dispute resolution (ADR) are increasingly popular methods for resolving conflicts in both family law and estate and trust litigation.  Mediation can help parties come to a mutually beneficial agreement without the need for a lengthy court battle.  In both areas of law, mediation and arbitration (submission of a dispute to a private party who resolves the dispute by making a binding decision) can sometimes be faster, less expensive, and less adversarial than traditional litigation.

3.     Legal Documentation

Both family law, and estate and trust litigation, often involve detailed documents and disputes that result from interpretation or violation of the terms of those documents.  In family law, this may include documents such as prenuptial agreements, postnuptial agreements, custody agreements, and divorce settlements.  In estate and trust litigation, such documents may include wills, trusts, and powers of attorney.

4.     Family Dynamics

In both family law, and estate and trust litigation, it is important to understand family dynamics and how they may impact legal proceedings.  In family law, the relationships between parties (certainly divorcing parties, but often children or grandparents as well) may be strained or contentious, which can make communication and cooperation very challenging.  In estate and trust litigation, the distribution of money and property may lead to tension among family members who have different ideas about how assets should be distributed or what the deceased person truly intended.  Occasionally the disputes are not even really about the money and property, but rather about jealousy or unresolved grudges and arguments going back years or decades.

5.     Advocacy

Family law, and estate and trust litigation, require skilled advocates to help parties navigate the courts and find fair solutions.  Occasionally there is no settlement between the parties and a third party (judge, jury, arbitrator, etc.) must become involved to conclusively resolve the dispute for them, which can be both risky and expensive.

Regardless, attorneys in both areas of law must understand the complex nuances of the law and be able to effectively communicate with clients and other parties involved in the case. They must also be able to advocate for their clients and help them achieve their desired outcomes while keeping in mind the emotional complexity and family dynamics involved.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

"Are Millions Missing? Some Relatives Want To Know. Others Don't."

            One of the premises of this Blog is that estate and trust disputes will become more common over the coming years and decades, in large part due to the graying of America given the large baby boomer generation actively retiring, the fact that people are living longer and many of them will develop dementia and Alzheimer’s Disease, and because we are in the midst of the largest inter-generational transfer of wealth in human history.  Accordingly, there will be increasingly more attention given to this subject. 

            A recent example of that is a New York Times article entitled “Are Millions Missing?  Some Relatives Want To Know.  Others Don’t” that features our law firm’s clients, Virginia and Curt Noel, and their years-long struggle to discover the truth surrounding their family’s wealth. We were privileged to represent Virginia and Curt in multiple legal proceedings both in federal court and state court, as they sought to unravel the mysterious and unfortunate events that surrounded the whereabouts of the assets left by Virginia’s mother, Rose McKee, and father, Dr. Bobby McKee, a prominent Jonesboro, Arkansas ophthalmologist and entrepreneur.  

            As the article states, between our law firm, our co-counsel, Asa Hutchinson, III, other law firms across the country, and a myriad of other financial experts and other consultants, the Noels have spent over a million dollars pursuing their investigation and litigation through the courts.  Most people are not blessed with the Noels’ resources to pursue such matters for the years which it has taken, but for them it was never about the money but was rather about the truth.  Their quest continues and can be followed at www.misplacedtrust.com. 

            I encourage you to read the New York Times article and then consider whether or not you might have a similar experience with regard to your wealth or your family.  If you are the potential beneficiary of a will or trust it pays to be diligent about your rights and be attentive to other beneficiaries and fiduciaries who may be less than diligent, attentive, or transparent.  If you are an executor or a trustee, this story is a good reminder that you must be attentive to your fiduciary obligations, mindful of the estate planning documents, and cognizant of your duties and obligations under the pertinent law. 

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Downing & Lueken, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Avoiding Estate, Trust, Probate & Inheritance Litigation?

As one who largely makes his living assisting fiduciaries and beneficiaries in disputes arising out of the contested disposition of a deceased person's money and property, it is probably not in my personal economic interest to dispense advice on how to avoid estate, trust, probate & inheritance litigation.  After all, such litigation is how I pay the bills and put food on the table.

However, first and foremost as an attorney I am in the business of trying to help people with their legal problems.  I am therefore reminded of what President Abraham Lincoln, a former lawyer himself, once said:  "Discourage litigation.  Persuade your neighbors to compromise whenever you can.  Point out to them how the nominal winner is often a real loser -- in fees, expenses, and waste of time.  As a peacemaker the lawyer has a superior opportunity of being a good man.  There will still be business enough."

With that admonition in mind, in researching an issue lately I came across the following linked article written by a Texas lawyer and published a few years ago by the American Bar Association:  "A Message To Clients:  Avoiding Probate Court Litigation."   It contains a good summary of situations which are susceptible to these types of disputes (dysfunctional families, subsequent marriages, sloppy or stale estate planning,  etc.).  It also includes solid suggestions for proactively preventing such disputes from arising in the first place.  

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Petitions For Instructions And Declarations Of Rights---Not All Trust Litigation Is Necessarily Nasty

Frequently trust litigation stems from a heated dispute between trustees and beneficiaries, or co-trustees who cannot agree on the trust administration, or beneficiaries who cannot agree on their respective rights under a trust instrument, or other disagreements between various parties incident to a trust.  When such disputes cannot be resolved amicably by the parties themselves, with or without the assistance of legal counsel, sometimes the only practical recourse is to file suit and let a judge or jury decide who should prevail depending upon the facts,  circumstances and evidence. 

With this in mind, Ark. Code Ann. § 28-73-201(b)  does not mandate continuing court supervision of trusts.  Rather, a court may intervene in the administration of a trust whenever it is asked to by an “interested person or as provided by law.”  Ark. Code Ann. § 28-73-201(a).  Such judicial proceedings involving a trust “may relate to any matter involving the trust’s administration, including a request for instructions and an action to declare rights.”  Ark. Code Ann. § 28-73-201(c) (emphasis added). 

In sum, occasionally trust-related judicial proceedings do not involve an alleged breach of trust, breach of fiduciary duty, misappropriation of assets, etc.  That's a good thing because such disputes---often involving family members fighting over money---can turn into some of the ugliest and most contentious wealth wars imaginable. 

Rather, petitions for instructions and requests for declaratory judgments---such as the ones contemplated in Ark. Code Ann. § 28-73-201(c)---are typically less heated because theoretically they involve an innocuous request that the court merely provide instructions or guidance to the trustee or beneficiaries. Perhaps the proceeding stems from an alleged ambiguity in the trust terms, maybe there is a question regarding which beneficiaries are supposed to receive trust income or principal, or possibly the court is simply being asked to declare the rights and obligations of various individuals associated with the trust.  

While these matters can still be adversarial in nature, they are usually not the classic battles in which someone is claiming that another party necessarily engaged in intentional fraud or other wrongdoing.  Accordingly, when appropriate this type of proceeding should be considered as an option whenever there is a need for court intervention in a situation which does not necessarily rise to the level of a full-blown  "divorce on steroids," as we sometimes call the nastiest of the inheritance-related disputes in which we are frequently asked to become involved. 

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Financial Elder Abuse And Exploitation In Arkansas

I have written before about our aging population and the effect that it will have on estate, trust, probate and inheritance litigation in the decades to come.  This stems from a number of demographic trends including (1) massive numbers of Baby Boomers entering retirement age and (2)  medical advances allowing people to live longer than ever before (but often with decreased physical and mental abilities).

An increasing number of older and incapacitated people will naturally result in an increasing number of elderly adults who are susceptible to, and actually subjected to,  abuse and exploitation.  This elder abuse can take a number of different forms, including physical, emotional, sexual and financial.  While all of these are bad, my focus for purposes of this blog post is on financial elder exploitation.  

There are agencies and organizations which play an educational and preventive role when it comes to elder abuse, but while doing good work they are often   overworked, understaffed and underfunded.  For example, Arkansas Adult Protective Services---a division of the Arkansas Department of Human Services---has a hotline number and is charged with the responsibility of investigating and intervening where there are reports of abuse, neglect, and exploitation of adults who are physically or mentally impaired and unable to protect themselves from harm.  

According to the National Committee for the Prevention of Elder Abuse, 

"Elder financial abuse spans a broad spectrum of conduct, including:

• Taking money or property

• Forging an older person's signature

• Getting an older person to sign a deed, will, or power of attorney through deception, coercion, or undue influence

• Using the older person's property or possessions without permission

• Promising lifelong care in exchange for money or property and not following through on the promise

• Confidence crimes ("cons") are the use of deception to gain victims' confidence

• Scams are fraudulent or deceptive acts

• Fraud is the use of deception, trickery, false pretence, or dishonest acts or statements for financial gain

• Telemarketing scams. Perpetrators call victims and use deception, scare tactics, or exaggerated claims to get them to send money. They may also make charges against victims' credit cards without authorization

Who are the perpetrators?

Family members, including sons, daughters, grandchildren, or spouses. They may:

• Have substance abuse, gambling, or financial problems

• Stand to inherit and feel justified in taking what they believe is "almost" or "rightfully" theirs

• Fear that their older family member will get sick and use up their savings, depriving the abuser of an inheritance

• Have had a negative relationship with the older person and feel a sense of "entitlement"

• Have negative feelings toward siblings or other family members whom they want to prevent from acquiring or inheriting the older person's assets

Predatory individuals who seek out vulnerable seniors with the intent of exploiting them. They may:

• Profess to love the older person ("sweetheart scams")

• Seek employment as personal care attendants, counselors, etc. to gain access

• Identify vulnerable persons by driving through neighborhoods (to find persons who are alone and isolated) or contact recently widowed persons they find through newspaper death announcements

• Move from community to community to avoid being apprehended (transient criminals)

Unscrupulous professionals or businesspersons, or persons posing as such. They may:

• Overcharge for services or products

• Use deceptive or unfair business practices

• Use their positions of trust or respect to gain compliance

Who is at risk?

The following conditions or factors increase an older person's risk of being victimized:

• Isolation

• Loneliness

• Recent losses

• Physical or mental disabilities

• Lack of familiarity with financial matters

• Have family members who are unemployed and/or have substance abusers problems

Why are the elderly attractive targets?

• Persons over the age of 50 control over 70% of the nation's wealth

• Many seniors do not realize the value of their assets (particularly homes that have appreciated markedly)

• The elderly are likely to have disabilities that make them dependent on others for help. These "helpers" may have access to homes and assets, and may exercise significant influence over the older person

• They may have predictable patterns (e.g. because older people are likely to receive monthly checks, abusers can predict when an older people will have money on hand or need to go to the bank)

• Severely impaired individuals are also less likely to take action against their abusers as a result of illness or embarrassment

• Abusers may assume that frail victims will not survive long enough to follow through on legal interventions, or that they will not make convincing witnesses

• Some older people are unsophisticated about financial matters

• Advances in technology have made managing finances more complicated

What are the indicators?

Indicators are signs or clues that abuse has occurred. Some of the indicators listed below can be explained by other causes or factors and no single indicator can be taken as conclusive proof. Rather, one should look for patterns or clusters of indicators that suggest a problem.

• Unpaid bills, eviction notices, or notices to discontinue utilities

• Withdrawals from bank accounts or transfers between accounts that the older person cannot explain

• Bank statements and canceled checks no longer come to the elder's home

• New "best friends"

• Legal documents, such as powers of attorney, which the older person didn't understand at the time he or she signed them

• Unusual activity in the older person's bank accounts including large, unexplained withdrawals, frequent transfers between accounts, or ATM withdrawals

• The care of the elder is not commensurate with the size of his/her estate

• A caregiver expresses excessive interest in the amount of money being spent on the older person

• Belongings or property are missing

• Suspicious signatures on checks or other documents

• Absence of documentation about financial arrangements

• Implausible explanations given about the elderly person's finances by the elder or the caregiver

• The elder is unaware of or does not understand financial arrangements that have been made for him or her."

In Arkansas, if the elder abuse is bad enough it can actually constitute a criminal offense and be prosecuted.  For example, Ark. Code Ann. Sec. 5-28-103 prohibits the abuse or exploitation of an endangered or impaired person, and Ark. Code Ann. Sec. 5-28-101 defines certain terms in the statute which encompass many types of wrongdoing, including financial abuse and exploitation.  Depending upon the amount of money or property misappropriated, the crime can constitute (1) a misdemeanor warranting a substantial fine or (2) a felony punishable by substantial prison time.  

However, it seems that prosecutors are often so overwhelmed with "street crimes" involving drugs, violence, sex, theft, etc. that "white collar" crimes involving financial exploitation (which often can be more difficult to prove) are frequently not pursued as a practical matter.  Accordingly,  the person aggrieved---or commonly someone acting for or on their behalf (because the elderly person may be incapacitated, or unable or unwilling to take action)---may necessarily be forced to resort to a civil court rather than a criminal court.  While such legal action will not result in the wrongdoer being criminally punished, depending upon the facts, circumstances and evidence they may be assessed with compensatory or potentially even punitive damages, along with attorney's fees, costs, and interest on the amounts misappropriated. 

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Understanding Estate, Trust, Probate And Inheritance Litigation In Terms Of "Pie"

I love pie, and it's probably my favorite type of dessert.  I have fond childhood memories of my Grandmother making fantastic butterscotch meringue pies whenever we would travel to her house back when I grew up in Oklahoma.  Every Fall I look forward to eating pecan pie, and I can cook a pretty good one using a recipe and method that I read about in Southern Living magazine many years ago.  In my opinion, cakes, cookies and other desserts pale in comparison to a big slice of pie accompanied by a big scoop of Blue Bell ice cream (or Arkansas-based Yarnell's).  

That said, I find that when talking to clients it is often helpful to explain estate, trust, probate and inheritance litigation and disputes  in terms of "pie."  For example, sometimes the question is "who gets a piece of the pie?"  There could be a conflict   about who the beneficiaries are in a will or trust.  Or, if there was not a will or trust a Court could need to determine who the deceased's heirs are for purposes of intestate succession.  If a will or trust sought to exclude someone and they challenge it, the enforcement or non-enforcement of that term could dictate whether or not they get a piece of the pie at all.

Sometimes the issue revolves around "how big a slice does everyone get?"  For example, a will or trust often leaves different types or percentages of property to different people or entities.  In an intestate estate where the deceased did not leave a will or trust (or perhaps those documents were found to be invalid), one's status as a surviving spouse, surviving child, surviving parent, surviving sibling, surviving grandchild, etc. will determine the size and extent of one's piece of the pie.

Other times the question involves "what is even in the pie?"  What I mean by  that is that property formally conveyed to a trust should pass through the trust, but property not conveyed to that trust will pass outside the trust (typically through the estate).  Likewise, whether or not an estate is formally opened or a trust even exists, some property can automatically pass by beneficiary designations (IRA's, life insurance, etc.) or operation of law (transfer on death accounts, joint tenants with right of   survivorship accounts, etc.) instead of passing to or through a trust, estate, etc.  

Finally, occasionally the concern focuses upon "whether anyone ate some (or all) of the pie before it got sliced  up?"  In other words, if there was a misappropriation of monies or assets the dispute may necessarily be primarily concerned with (1) attempting to investigate, locate and recover the missing property, and (2) holding whomever took it civilly or criminally responsible, if appropriate.  

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Power Of Attorney Problems---Who Has The Right To Try And Fix Them?

I have previously written about powers of attorney, which can be great estate planning tools in the right hands and terrible estate planning hands in the wrong hands ("licenses to steal").  

In other words, powers of attorney can be very useful for assisting persons with making financial and health care related decisions.  On the other hand, if the "agent" ends up taking advantage of the "principal" by carrying out acts which are not in the principal's interest (and which, for example, are instead in the agent's interest), the principal can be financially devastated (e.g., the agent could clean out the agent's bank account or sell their real estate, etc.)  or their health can be prejudiced (e.g., the agent could withhold treatment, etc.).  

Sometimes people other than the principal (perhaps the principal is incapacitated or deceased)  want to challenge the agent's actions, and a question of "legal standing" is raised.  Put another way, there is occasionally an issue regarding who if anyone besides the principal  has the right to challenge certain conduct carried out pursuant to a power of attorney.

In Arkansas that question is often answered by Ark. Code Ann. Sec. 28-68-116, which is the "Judicial Relief" section of the Uniform Power Of Attorney Act codified at Ark. Code Ann. Sec. 28-68-101, et seq.  The Uniform Law Comment to Ark. Code Ann. Sec. 28-68-116 states that "[t]he primary purpose of this section is to protect vulnerable or incapacitated principals against financial abuse."  

The statute says that:

(a)   The following persons may petition a court to construe a power of attorney or review the agent's conduct, and grant appropriate relief:

(1)   the principal or the agent;

(2)  a guardian, conservator, or other fiduciary acting for the principal;

(3)   a person authorized to make health-care decisions for the principal;

(4)   the principal's spouse, parent, or descendant;

(5)   an individual who would qualify as a presumptive heir of the principal;

(6)   a person named as a beneficiary to receive any property, benefit, or contractual right on the principal's death or as a beneficiary of a trust created by or for the principal that has a financial interest in the principal's estate;

(7)   a governmental agency having regulatory authority to protect the welfare of the principal;

(8)   the principal's caregiver or another person that demonstrates sufficient interest in the principal's welfare; and

(9)   a person asked to accept the power of attorney.

(b)   Upon motion by the principal, the court shall dismiss a petition filed under this section, unless the court finds that the principal lacks capacity to revoke the agent's authority or the power of attorney.

As one can see, a wide variety of individuals has the power to challenge actions taken under a power of attorney.  The Uniform Law Comment to this statute says that such "broad categories" serve the purpose of "[a]llowing any person with sufficient interest to petition the court" and this "is the approach taken by the majority of states that have standing provisions."

I have represented (1)  power of attorney agents, (2)  power of attorney principals, and (3)  family members and friends of power of attorney principals.   For the first group,  this statute is a good reminder that they need to be careful  acting under a power of attorney because any number of people have legal standing to challenge their conduct.  For the second and third groups, this statute allows for a wide array of persons to contest agent behavior which they perceive to be unfair to or indicative of exploitation of a principal.  

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Presentation At The 2016 Arkansas Bar Association Annual Meeting

Today one of my law partners, Pat James, and I will be privileged to make a presentation at the Arkansas Bar Association Annual Meeting in Hot Springs, Arkansas, where over 1,200 lawyers and judges congregate every June for 4 days of continuing education seminars,  meetings, and socializing.   The title of our presentation is---not surprisingly given that you are reading this blog---"WEALTH WARS:   Arkansas  Estate, Trust, Probate And Inheritance Litigation."

The hour-long presentation is designed to be a broad overview, for the general practitioner, of numerous topics arising in this area of law.   For an A to Z listing of the topics to be discussed, inclusive of some written materials containing a checklist of common claims and causes of action; a checklist of common defenses; an exemplary case theme (the “fraud triangle”); a lengthy list of Arkansas statutes frequently arising in litigated estate and trust matters; and citations to a few helpful general and Arkansas-specific secondary materials,  please click on the following link:    Written Materials For June 2016 CLE Presentation 

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.