Higey Law LLC

FCRA Compliance Mistakes Businesses Make and How to Avoid Them

2026-04-09T14:42:20Z

Most businesses that run background checks believe they follow the rules. They have a process, they have forms and someone on the team handles it. Then a lawsuit arrives. The gaps become impossible to ignore. The Fair Credit Reporting Act does not grade on effort. It grades on execution. Here are five mistakes businesses make repeatedly and what you need to do differently.

Mistake 1: Burying the disclosure in a stack of forms

The law requires a clear, standalone disclosure before you pull a consumer report on any applicant. Standalone means one document, one purpose, nothing else on the page. Many businesses fold this disclosure into their general employment application or new hire packet. Courts do not accept that. The moment you add anything else to that page, including a liability waiver or a company policy summary, you have a defective disclosure. It does not matter that the applicant signed it. Separate the document and keep it clean. This is not a technicality. It is the foundation of your entire compliance process.

Mistake 2: Skipping the pre-adverse action step

Before you act on anything negative in a consumer report, federal law requires you to send a pre-adverse action notice first. This gives the individual time to review the report and dispute any errors before your decision becomes final. Here is what happens in practice. A hiring manager sees a criminal record, decides the candidate is out and rescinds the offer that same afternoon. No notice sent, no waiting period observed. That sequence creates legal liability regardless of what the report said or how reasonable the decision was. Send the pre-adverse action notice. Attach a copy of the report and the summary of rights. Wait a reasonable period, then make your final call.

Mistake 3: Pulling reports without a clear permissible purpose

The FCRA only allows you to request a consumer report for specific, legally defined reasons: employment, credit, insurance and a handful of others. Pulling a report on a former employee, a business partner or anyone outside those categories puts you on the wrong side of the law. Before you request any report, confirm your purpose fits within those defined categories and document it. If you cannot articulate a permissible purpose in plain language, you should not be pulling the report.

Mistake 4: Ignoring the rules around investigative consumer reports

Investigative consumer reports, which include interviews with references, neighbors or personal contacts, carry additional obligations that many businesses overlook entirely. You must notify the subject within three days of requesting the report and inform them of their right to request a full description of the investigation's scope. Businesses run these reports without sending the required notice and open themselves up to a separate set of legal claims on top of any standard FCRA violation. Know what kind of report you are ordering before you order it.

Mistake 5: Building a process once and never revisiting it

This is the mistake that builds on all the others. A compliance process is not a filing cabinet item. Courts and regulators update their interpretations regularly and what held up three years ago may not hold up today. Watch for these recurring gaps:

Disclosure forms that have grown over time and no longer qualify as standalone documents.
Adverse action timelines applied inconsistently across departments or locations.

Set a review schedule, audit your forms annually and update your procedures whenever your screening practices change.

What the stakes look like

FCRA violations do not require intent. A procedural gap in an otherwise well-run process carries the same legal exposure as deliberate noncompliance. Statutory damages can reach $1,000 per violation and class action exposure multiplies that number fast. An attorney who knows this statute well can review your current process and find the gaps before a complaint does it for you. This publication is provided only for educational purposes; it should not be relied upon as legal advice, and it should not be used, in whole or in part, as a basis for engaging in estate planning or estate administration. Every reader’s circumstance is unique, and legal advice should be obtained only from a lawyer with whom the reader has established an attorney-client relationship. Copyright 2026 © Higey Law LLC. All material contained within this publication is protected by copyright law and may not be reproduced without the express written consent of Higey Law.

The Estate Planning Checklist: 10 Steps to Protect Your Legacy

2026-03-05T10:28:36Z

Spring cleaning often includes tidying your home and organizing your finances. However, securing your family’s future requires a different kind of preparation. Estate planning ensures your assets reach the right people and provides lasting peace of mind. This checklist could help in building a solid foundation for your legacy..

Create a Will

A will dictates how the court distributes your property according to your specific wishes. Alabama law decides who inherits your assets if you die without one.

Name Beneficiaries

Assign beneficiaries to your life insurance policies and retirement accounts immediately. These designations override your will so you must keep them current as your life changes.

Establish a Power of Attorney

Designate a trusted person to manage your financial affairs if you lose capacity. This document prevents a court-appointed guardian from taking control of your private matters.

Set Up an Advance Healthcare Directive

Outline your medical preferences clearly using the Alabama Advance Directive for Health Care. Name a proxy and state your end-of-life wishes to guide your family.

Consider a Trust

Create a trust to bypass the public and often lengthy Alabama probate process. Trusts offer privacy and grant you greater control over exactly when heirs receive assets.

Inventory Your Assets

List all real estate, bank accounts and investment portfolios. Include valuable personal items like jewelry, artwork or family heirlooms to simplify the distribution process.

Plan for Digital Assets

Catalog your online accounts and secure your passwords in a safe location. Ensure your executor can access your digital property without facing significant legal hurdles.

Address Tax Implications

Consult a professional to minimize potential federal tax burdens on your estate. While Alabama has no inheritance tax, smart planning protects your heirs from unnecessary financial loss.

Communicate Your Wishes

Share your plan with family members to set clear expectations. Open dialogue prevents confusion and reduces the risk of emotional conflict after you pass.

Review and Update Regularly

Update your documents after major life events like marriage, birth or divorce. Regular reviews ensure your plan reflects your current situation and goals accurately.

Secure Your Hard-Earned Assets

Every family has unique needs and complex financial goals. Alabama laws change frequently and one small mistake can invalidate your entire plan. A skilled lawyer can ensure that your documents meet strict legal standards. This secures your family's future, providing your loved ones with lasting stability before another season passes.

Why the New Year is the Perfect Time to Revisit Your Estate Plan

2026-02-19T12:01:22Z

The new year comes with a chance to make a symbolic fresh start in various areas of life. For adults, one of these should be ensuring that their estate plan is set up and current. Anyone who doesn’t have one should take the time to make one. If you’re one of the adults who already has an estate plan in place, now is the time for you to review it to ensure that it fully meets your current wishes. It’s especially important for you to do this if you’ve had any major changes in your life since the last time you looked at it.

Reasons to review your estate plan

There are many life events that trigger the need to check your estate plan. This includes changes in family dynamics, such as marriages, divorces, births, deaths and adoptions. Changes in finances, such as selling or purchasing assets, will also mean you need to review your estate plan. This is also a good opportunity to ensure that your estate plan takes the most current tax and estate planning laws into account.

Review the entire plan

When you review the estate plan, you can’t just glance over it. Instead, consider each component individually and then look at how it will work as a whole. As you’re going over everything, make sure that beneficiaries’ names are spelled correctly. Check your power of attorney designations and the estate administrator to ensure you will want those individuals in those positions. If you have children, double-check guardianship information. Ensuring that you have a comprehensive estate plan in place is important because it provides your loved ones with guidance after you pass away. Working with someone who can assist with setting up the plan can help give you peace of mind. This publication is provided only for educational purposes; it should not be relied upon as legal advice, and it should not be used, in whole or in part, as a basis for engaging in estate planning or estate administration. Every reader’s circumstance is unique, and legal advice should be obtained only from a lawyer with whom the reader has established an attorney-client relationship. Copyright 2026 © Higey Law LLC. All material contained within this publication is protected by copyright law and may not be reproduced without the express written consent of Higey Law.

4 common estate planning mistakes to avoid

2025-11-25T09:45:07Z

Proper estate planning secures your family’s future. However, many people make basic errors that can complicate matters later. Here are four common mistakes Alabamians should actively work to prevent ensuring their wishes are clearly followed.

Failing to update your will after major life events.

Life constantly changes yet people often neglect their will after creation. Marriage divorce, birth of a child or a significant change in assets demands an update. An outdated will may not reflect your current relationships or desires potentially leaving the wrong people with your property. Review and revise your documents immediately following any major life change.

Not naming alternate beneficiaries.

You name a primary person to receive your assets. What happens if that person dies before you? Failing to name an alternate beneficiary forces your assets into probate costing time and money. Always specify a secondary recipient to prevent legal complications and ensure smooth transfer of property.

Overlooking digital assets.

In this modern age we all possess digital assets like social media accounts, email funds in online payment systems and cryptocurrency. These assets hold real value and require a plan. Your estate plan must explicitly address who accesses, manages and eventually deletes these accounts. Ignoring them leaves a confusing mess for your inheritors.

Misunderstanding the role of trusts.

Many people think trusts only benefit the extremely wealthy. In Alabama, trusts offer powerful benefits like avoiding probate, protecting assets from creditors and controlling the distribution of property after your death. You should explore how a trust can provide greater flexibility and security than a simple will.

Securing your legacy

Estate laws are intricate and specific to Alabama. Small errors in drafting or execution create significant legal problems for your loved ones. You may need specialized counsel to draft accurate documents that perfectly align with state requirements and your personal objectives. Professional guidance protects your legacy and gives your family peace of mind.

Estate Planning for Blended Families: Avoiding Conflicts After Divorce

2025-10-29T16:53:32Z

Blended families face distinct challenges when it comes to estate planning. After a divorce, new marriages often bring together children, stepchildren, and new spouses, all with unique legal and financial considerations. Without a comprehensive estate plan, your assets may not be distributed as intended, increasing the risk of family conflict and costly legal battles.

Common Issues in Blended Family Estate Planning

Outdated estate documents and unclear beneficiary designations can quickly escalate into disputes among family members. If your existing will or trust was created for a prior family structure, it’s easy for assets to end up in the wrong hands, causing unnecessary tension. Proactively addressing these issues helps maintain control over your legacy and minimizes potential friction.

Effective Strategies to Protect Your Legacy

Consider implementing the following approaches for a clear, enforceable estate plan:

Update Your Will or Trust: Ensure all documents reflect your current family situation. Specifically name your spouse, children, and stepchildren, and clarify asset distribution to avoid ambiguity.
Review and Revise Beneficiary Designations: Life insurance policies, retirement accounts, and payable-on-death accounts do not follow your will. Double-check each account to guarantee your current intentions are honored.
Use Nuptial Agreements Strategically: A prenuptial or postnuptial agreement can define financial responsibilities and help safeguard assets for children from previous relationships, reducing the likelihood of future disputes.

Secure Your Family’s Financial Future

Estate planning in blended families requires specific legal knowledge and attention to detail. Don’t leave the outcome to chance. Work with an experienced attorney who understands the complexities of family dynamics and Alabama law. Fill out our contact form or call [nap_phone id="LOCAL-CT-NUMBER-1"] to schedule a consultation.

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This publication is provided only for educational purposes; it should not be relied upon as legal advice, and it should not be used, in whole or in part, as a basis for engaging in estate planning or estate administration. Every reader’s circumstance is unique, and legal advice should be obtained only from a lawyer with whom the reader has established an attorney-client relationship. Copyright 2025 © Higey Law LLC. All material contained within this publication is protected by copyright law and may not be reproduced without the express written consent of Higey Law.

What Does and Doesn’t Go Through Probate?

2025-09-02T17:04:04Z

Probate plays a key role in settling an estate, but not all assets go through this process. Knowing what does and what doesn't go through probate in Alabama can help you plan more efficiently and avoid delays or extra costs in distributing your estate to your beneficiaries.

What is probate and why does it matter?

Probate is a court-supervised process for settling a deceased person’s estate. When a will exists, the court authenticates it and gives the named executor legal authority to manage the estate. If there’s no will, the court appoints an administrator to do the job. Probate ensures the estate pays its debts and transfers assets to the rightful heirs. Because probate involves legal steps, court fees and potential delays, many people look for ways to reduce or avoid it altogether.

Which assets go through probate?

Assets typically go through probate when the deceased person was the sole owner and no beneficiary was named. These include:

Individually owned real estate: Property held solely in the decedent’s name.
Jointly owned real estate: Property held jointly by two or more people without right of survivorship.
Bank accounts without beneficiaries: Accounts lacking a payable-on-death (POD) designation.
Personal property: Items like jewelry, electronics, vehicles, and furniture.
Business interests: Ownership in a sole proprietorship or privately held business.
Investments without TOD designations: Stocks or bonds without transfer-on-death instructions.

If the deceased didn’t set up alternate arrangements, these assets require court approval before heirs can receive them.

Which assets avoid probate?

Many assets skip probate entirely when the owner uses certain legal tools. These include:

Assets with named beneficiaries: Life insurance, retirement accounts and POD bank accounts transfer directly to beneficiaries.
Assets held in a trust: Living trusts let you transfer property without court involvement.
Transfer-on-death (TOD) designations: Real estate or investment accounts with TOD clauses pass directly to the named recipient.
Jointly owned property: Property with rights of survivorship automatically passes to the surviving co-owner.

By setting up these tools, you can simplify the estate transfer process and help your family avoid legal costs and delays.

Why you need legal guidance

Alabama’s probate laws are complex, and even simple estates can get complicated without the right planning. A qualified probate attorney can guide you through the process, ensure your paperwork is in order and help you avoid unnecessary expenses. An attorney can also help you:

Draft and file the necessary documents
Identify ways to reduce costs and shorten the timeline
Build an estate plan that shifts assets outside of probate

You can also consider using tools like trusts and TOD designations to reduce probate’s impact.

Plan ahead to avoid probate problems

Whether you're writing your own will or managing someone else's estate, understanding which assets go through probate and what executors do helps you make smart, forward-thinking decisions. Working with an estate planning attorney now can protect your assets, reduce your family’s stress and ensure your wishes are honored. ________________________________________________________________ This publication is provided only for educational purposes; it should not be relied upon as legal advice, and it should not be used, in whole or in part, as a basis for engaging in estate planning or estate administration. Every reader’s circumstance is unique, and legal advice should be obtained only from a lawyer with whom the reader has established an attorney-client relationship. Copyright 2025 © Higey Law LLC. All material contained within this publication is protected by copyright law and may not be reproduced without the express written consent of Higey Law.

5 Reasons to Avoid Probate

2025-06-17T18:19:44Z

Probate is the term we use to describe the legal process of disposing of a deceased person’s assets through the court system under court supervision. Probate can occur with or without a will. When there is a will, probate is less complicated and – typically – involves less court supervision. That being said, probate can become a protracted and costly ordeal, even with a will. By steering clear of probate, you shield your loved ones from enduring this often complex legal process that can drag on unnecessarily.

Saves time & Money

If a married couple organizes their joint estate correctly, the surviving spouse can avoid probate altogether. This saves time and money for the surviving spouse. In Alabama, probate requires at least six months from the issuance of the letters of administration to the final settlement and closure of the probate process; usually, it takes much longer. If married couples plan properly, only one probate will need to occur – after the last spouse dies. Avoiding probate when the first spouse dies saves money too. The probate process typically incurs various fees, including court costs and attorneys’ fees, which diminish the value of the estate. Avoiding probate helps preserve more of your estate's worth for your beneficiaries by eliminating or reducing these expenses, which can be substantial depending on the size of the estate.

Reduces the Burden on Your Beneficiaries

Most older adults leave their estate to their adult children. If your adult children live out of state, managing the probate of an estate is quite burdensome, even if the decedent had a will. Multiple trips will have to be made to Alabama to attend court hearings and to handle the sale and disposition of real and personal property. By placing your assets in a trust, your adult children can avoid the expense, burden, and inconvenience of having to run your estate through probate.

Privacy protection

Probate is a public process, which means personal and financial details become part of the public record. This exposure can compromise your family's privacy and expose sensitive information to strangers. By avoiding probate, you keep sensitive information about your assets confidential within your family circle.

Flexibility in Property Ownership

If you own real property, e.g., a beach house, in another state, like Florida, your executor will not only have to open a probate in Alabama, but they will have to open a probate proceeding in that other state in order to transfer the property to your beneficiaries. By using a trust, you can gain the flexibility of owning land and homes in other states without adding to the burden of multiple probate proceedings.

Avoiding Family Disputes

Probate often sparks disputes among family members regarding inheritance, sometimes leading to long-lasting rifts. By using a trust to avoid probate, you can provide clear instructions to your trustee on asset distribution ahead of time, reducing misunderstandings, preventing conflicts, and preserving family harmony. Avoiding probate offers a range of benefits, including time and cost savings, enhanced privacy, and more control over your estate's distribution. It also plays a crucial role in minimizing potential family disagreements, allowing your wishes to be honored with clarity and respect.

Preparing for the Unexpected: Why Everyone Needs an Estate Plan

2025-01-14T22:28:07Z

An estate plan helps to better ensure the distribution of your assets according to your wishes. An effective estate plan uses several key elements, often including:

Wills and Trusts: These legal tools allow the creator to specify asset distribution and care for minor children.
Powers of Attorney: This document can designate individuals to make decisions on your behalf if you are unable.
Healthcare Directives: Outline your wishes for medical care if you cannot communicate them yourself.

These components help to address both the distribution of your assets as well as your health preferences in the event of incapacitation.

How do I create an effective and comprehensive estate plan?

One of the first steps involves a thorough inventory of your assets. This helps you to understand what you will want to include in your estate plan. It is also helpful to decide on your beneficiaries and how you wish to distribute your assets. Once you have this information ready, you can review the various legal tools noted above to start putting together a plan tailored to your specific needs.

What happens if I do not have an estate plan?

Those who neglect to establish an estate plan can leave behind legal and emotional challenges for loved ones. Without a will, your assets go through probate, potentially delaying distribution and without clear directives, family disputes over assets and care decisions can arise. There is also the possibility of additional financial burdens as there is potential for increased taxes and legal fees.

When should I update my estate plan?

An estate plan is not a one-time task but an ongoing process to reflect life changes. It is important to review and update your estate plan regularly or after major life events. Examples can include the addition of a family member through birth or marriage or removal of intended beneficiaries due to death or divorce. An estate plan is a vital tool for managing your assets and health decisions. It protects your interests and those of your loved ones. Remember, an estate plan provides peace of mind and security, not just for you but also for those you care about. Begin the process today to safeguard your future and legacy.

3 common causes of boundary disputes

2024-08-27T21:22:14Z

When people own land, they deserve to have that property ownership respected. Unfortunately, you may run into problems when misunderstandings or disagreements cause conflict about the true extent of your property or the ways you use that land. Understanding these issues can help landowners avoid or resolve disputes.

Unclear property lines

Disputes about property boundaries often arise when the property's deed does not clearly or accurately describe the property's borders. This document should outline the borders clearly. However, if the description is vague, incomplete or incorrect, it might overlap with a neighbor's property. This issue can come up during property sales, improvements, or new land surveys. It's important for landowners to ensure their property's description is accurate and to clear up any uncertainties with the help of a surveyor and a lawyer.

Issues with easements

An easement allows someone to use another person's property for a specific purpose, like accessing a shared driveway or for utility work. Disagreements can occur over the terms of the easement or whether it should exist at all. Common problems include disputes over how much of the easement can be used, blocking access to the easement, or needing to change the easement because the property is being used differently.

Encroachment

Encroachment occurs when a property owner builds something or uses land that extends beyond their property line, such as a fence, shed, or driveway that stretches into a neighbor's land. This can lead to disputes if the neighbor wants the structure removed or seeks compensation for the land use. Resolving these issues might involve negotiating an easement, removing the offending structure, or compensating the affected neighbor. Dealing with boundary and easement disputes can be complex and stressful. To prevent these issues, it is crucial to have detailed surveys, clear legal descriptions and specific easement agreements. It is also vital for property owners to understand the issues that might arise so they can protect their rights.

What is the difference between guardians and conservators?

2024-07-19T14:14:12Z

Guardians and conservators are both roles appointed by a court to assist individuals who cannot care for themselves or manage their affairs, but the roles have different responsibilities. In some cases, the same person can be appointed as both a conservator and guardian, taking on both sets of responsibilities. They are typically a family member, someone who has power of attorney or a candidate chosen by the person’s caretaker. Guardians are responsible for the personal well-being of an individual, often called the ward. They make decisions about the ward's daily life, including healthcare, living arrangements, education and general welfare. Guardians are often appointed for minors or adults who are incapacitated and unable to make personal decisions for themselves. Conservators are responsible for managing the financial affairs and assets of a person, often referred to as the conservatee. Typical tasks include paying bills, managing investments and protecting the financial interests of the conservatee's estate. While their duties are different, they are often appointed for a similar reason—the conservatee can no longer manage their financial matters due to age, disability or incapacity.

What is the process of appointing one?

In Alabama, appointing a Guardian or Conservator involves several steps. Here's a general overview:

File a petition: The process begins with filing a petition in the probate court.
Appoint a guardian ad litem: The court appoints a guardian ad litem to represent the interests of the person for whom guardianship or conservatorship is for.
Medical examination: The individual, often referred to as the respondent, is examined by a physician to assess their mental and physical condition.
Appointment of a court representative: The court appoints a representative to investigate and report on the need for the conservator or guardian.
Hearing: The court holds a hearing during which a jury may be present if requested.
Bond for conservator: The conservator may need to post a bond if they are appointed.
Order granting petition: If the judge determines that guardianship or conservatorship is necessary, an order is issued granting the petition.

Outside legal guidance is often helpful

The legal complexity of each job often requires the services of a trained estate law attorney. Morevoer, the Probate Judge cannot advise the petitioner of the law or provide you with forms. The attorney can guide families, loved ones and candidates through the entire process.