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Arkansas Living Trust Forms – Irrevocable & Revocable

The Arkansas living trust is a form that allows a Grantor to transfer their assets and property to a separate entity to be distributed to a Beneficiary upon the Grantor’s death. Any interest or income accrued from the Grantor’s assets may still be distributed to the Grantor during their lifetime (with a Revocable Trust). An Irrevocable Trust does not permit the Grantor to manage his/her assets, however, this type of trust offers various tax advantages. Regardless of which type of Trust is created, all assets of the Trust will not be subject to the probate process, meaning that the assets will be distributed to the Beneficiary immediately after the Grantor dies.

LawsTitle 28, Subtitle 5, Chapter 23 (Arkansas Trust Code)

Will (Last Will and Testament) – Recommended to be created as it will outline the distribution of all assets not mentioned in a Living Trust.

Types

Irrevocable Living Trust – Cannot be modified by the Grantor after it has been created and offers tax advantages over a Revocable Trust. Often, an Irrevocable Trusts will require its own tax identification number (EIN).

Revocable Living Trust – Provisions of a Revocable Trust may be altered or terminated by the Grantor at any time during their lifetime. The Grantor may also act as the Trustee in the case of a Revocable Trust, permitting them to manage their assets as they see fit.

Individual Roles

There are four (4) main roles in a Living Trust:

Grantor (or “Settlor”) – Person who is making the trust and is the owner of all real estate and property.

Trustee – A Trustee is an individual placed in charge of the Grantor’s assets during the Grantor’s lifetime. Upon the Grantor’s death, the Trustee will distribute the assets to the Beneficiary as described in the Trust. The Grantor may also act as the Trustee.

Successor Trustee – If the initial Trustee becomes incapacitated or dies, the Successor Trustee will assume control of the Trust. The Successor Trustee will then be required to act within the scope of the terms described in the Trust.

Beneficiaries – Person(s) to receive real estate and/or property upon the death of the Grantor.

How to Make a Living Trust in Arkansas

Creating a Living Trust in the State of Arkansas is done by establishing which assets are to be placed within the Trust as well as naming the Beneficiaries who are to receive said assets upon the Grantor’s death. The type of Trust must then be chosen (see types above). A living Trust must comply with the specifications described in § 28-73-402 and it’s recommended that it be signed in front of a Notary Public. Once notarized, the Trust becomes legal and the personal property and real estate described within the Trust must be handled by the Trustee.

Motor Vehicles – A Bill of Sale is required when transferring a vehicle to a new owner in Arkansas.

Real Estate – When transferring property using a Trust, the Grantor should fill out an Arkansas Deed and have it filed with the Circuit Court.

Websites – The Grantor must adjust their ownership information with ICANN / WHOIS. This can be accomplished by logging into the account to which the domain is registered and altering the administration and contact details there.

Do I Need a Living Trust?

A Living Trust should be created if the goal is to avoid the probate process implemented upon the death of the Grantor, and if the estate of the Grantor is sizeable. However, certain scenarios may be more cost effective without the use of a Living Trust. For example, the probate process is simplified when entrusting an estate valued below $100,000 and therefore those falling into this category will not be required to employ a Living Trust (see § 28-41-101 for more information). An estate that is valued below the aforementioned amount can be collected by an individual upon the filing of a Small Estate Affidavit within forty-five days (45) after the Grantor’s death.

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