USA – ARKANSAS Law and Practice Contributed by: Aaron Bundy and Danya Bundy, Bundy
atory adoption or parentage order is recommended rather than reliance on presumptions and birth cer - tificates alone. 9.3 Cohabitation and Unmarried Couples Arkansas does not recognise common law marriage, no matter how long a couple cohabits or how they hold themselves out, although marriages validly cre - ated in states that permit common law marriage are recognised here. Cohabitation creates no property rights, no inheritance rights, no spousal allowances, and no support obligations. An unmarried partner is a stranger to intestacy and takes no dower or elective share, and lifetime transfers between partners are tax - able gifts beyond the annual exclusion, with no marital deduction. Rights between unmarried partners arise only from title and contract. Real estate follows the deed, so survivorship must be created deliberately through joint tenancy titling, beneficiary deeds, payable-on-death designations, or trust ownership, and cohabitation agreements are enforceable under ordinary contract principles and worth writing whenever finances are intertwined. The planning is mandatory rather than optional. Wills or trusts naming the partner, benefi - ciary designations, powers of attorney, and health - care documents are the entire safety net, because no default rule protects an unmarried partner, and the default rules affirmatively favour blood relatives the client may barely know. Charitable planning is organised around the federal deductions, and the gift and estate tax charitable deductions are unlimited. On the income tax side, non-itemisers may deduct cash gifts up to USD1,000 for single filers and USD2,000 for joint filers, although gifts to donor advised funds and most private founda - tions do not qualify. Itemisers face a new floor equal to 0.5% of adjusted gross income, which rewards bunching gifts into alternate years, and top-bracket donors face a new ceiling as well, since itemised deductions now deliver at most 35 cents of benefit per dollar for taxpayers in the 37% bracket. The 60% of 10. Charitable Planning 10.1 Charitable Giving
adjusted gross income ceiling for cash gifts to public charities is permanent. Qualified charitable distribu - tions from IRAs after age 70 and a half remain the retiree favourite, USD111,000 per person for 2026, satisfying required minimum distributions without rec - ognising income and sailing past both the new floor and the new ceiling. Arkansas permits itemised deductions for charitable contributions on the state return under rules that gen - erally track the federal framework, and a taxpayer may itemise for Arkansas purposes even when the fed - eral standard deduction is used, a state-level incen - tive many clients overlook. Gifts of appreciated stock avoid capital gain, charitable remainder trusts con - vert concentrated low-basis holdings into diversified lifetime income, and charitable bequests reduce the taxable estate dollar for dollar. Retirement accounts are routinely directed to charity at death, since they are the most heavily taxed asset a family can inherit and the cheapest one to give away. 10.2 Common Charitable Structures Donor advised funds are the default for most fami - lies, typically through community foundations, and the Arkansas Community Foundation’s statewide affiliate network makes local giving easy to organise. Advan - tages are immediate deduction, no minimum payout, low cost, light administration, and anonymity when desired. The disadvantage is the absence of legal control, since the sponsoring organisation owns the fund and the family holds advisory privileges. Private foundations suit families who want control, board roles for children, staff of their own, and a per - manent institutional identity for their giving. The costs are the 5% minimum distribution requirement, the excise tax on net investment income, the self-dealing and related restrictions, and public disclosure through returns anyone can read. Charitable remainder trusts serve donors needing retained income, and charita - ble lead trusts leverage transfer tax benefits for fam - ily remainders. Supporting organisations fill a narrow niche for major gifts tied to particular institutions. Many families blend the structures, using a founda - tion for identity and governance alongside a donor advised fund for convenience and privacy.
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