Title 28 — — Appendix Administrative Order Number 12 — Official Probate Forms
41 chapters · 852 sections in this title.
Ark. Code Ann. § 28-73-412 Modification or termination because of unanticipated circumstances or inability to administer trust effectively
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(a) In addition to the procedure available under § 28-69-401 et seq., a court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of…
Ark. Code Ann. § 28-73-413 Cy pres
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(a) Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:(1) the trust does not fail, in whole or in part;(2) the trust property does not revert to the settlor or the settlor's succe…
Ark. Code Ann. § 28-73-414 Modification or termination of uneconomic trust
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(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than one hundred thousand dollars ($100,000) may terminate the trust if the trustee concludes that the value of the trust property is insufficient to jus…
Ark. Code Ann. § 28-73-415 Reformation to correct mistakes
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A court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expressio…
Ark. Code Ann. § 28-73-416 Modification to achieve settlor's tax objectives
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To achieve the settlor's tax objectives, a court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.
Ark. Code Ann. § 28-73-417 Combination and division of trusts
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(a) (1) After notice to the qualified beneficiaries, a trustee may combine two (2) or more trusts into a single trust or divide a trust into two (2) or more separate trusts, if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of…
Ark. Code Ann. § 28-73-501 Rights of beneficiary's creditor or assignee
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To the extent a beneficiary's interest is not protected by a spendthrift provision, a court may authorize a creditor or assignee of the beneficiary to reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary or oth…
Ark. Code Ann. § 28-73-502 Spendthrift provision
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(a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest. (b) A term of a trust providing that the interest of a beneficiary is held subject to a “spendthrift trust”, or words of similar import, is sufficient to…
Ark. Code Ann. § 28-73-503 [Reserved.]
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A.C.A. § 28-73-503Current through all legislation of the 2025 Regular Session.Arkansas Code of 1987 Annotated Official EditionCopyright © 2026 by the State of Arkansas All rights reserved
Ark. Code Ann. § 28-73-504 Discretionary trusts — Effect of standard
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(a) Whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if:(1) the discretion is expressed in the form of a standard of distribution; or(2) the trustee has abused the …
Ark. Code Ann. § 28-73-505 Creditor's claim against settlor
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(a) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors. If a trust has more than one (1) settlor, the amount the c…
Ark. Code Ann. § 28-73-506 Overdue distribution
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Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary with…
Ark. Code Ann. § 28-73-507 Personal obligations of trustee
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Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
Ark. Code Ann. § 28-73-601 Capacity of settlor of revocable trust
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(a) The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. (b) Notwithstanding subsection (a), action taken by an agent under a power of attor…
Ark. Code Ann. § 28-73-602 Revocation or amendment of revocable trust
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(a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before September 1, 2005. (b) If a revocable trust is created or funded by mo…
Ark. Code Ann. § 28-73-603 Settlor's powers — Powers of withdrawal
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(a) To the extent a trust is revocable by a settlor, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the extent a trust is revocable by a settlor in conjunction with a person other than a trustee or person holding an adverse interest…
Ark. Code Ann. § 28-73-604 Limitation on action contesting validity of revocable trust — Distribution of trust property
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(a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of:(1) three (3) years after the settlor's death; or(2) ninety (90) days after the trustee sent the person a notice informing the person…
Ark. Code Ann. § 28-73-701 Accepting or declining trusteeship
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(a) Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship:(1) by substantially complying with a method of acceptance provided in the terms of the trust; or(2) if the terms of the trust do not provide a method or the method provided…
Ark. Code Ann. § 28-73-702 Trustee's bond
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(a) A trustee shall give bond to secure performance of the trustee's duties only if a court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement. (b) A court may spe…
Ark. Code Ann. § 28-73-703 Cotrustees
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(a) Cotrustees who are unable to reach a unanimous decision may act by majority decision. (b) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust. (c) A cotrustee must participate in the performance of a trustee's function unless the cotrustee i…
Ark. Code Ann. § 28-73-704 Vacancy in trusteeship — Appointment of successor
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(a) A vacancy in a trusteeship occurs if:(1) a person designated as trustee rejects the trusteeship;(2) a person designated as trustee cannot be identified or does not exist;(3) a trustee resigns;(4) a trustee is disqualified or removed;(5) a trustee dies; or(6) a guardian of the…
Ark. Code Ann. § 28-73-705 Resignation of trustee
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(a) A trustee may resign:(1) upon at least thirty (30) days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or(2) with the approval of a court. (1) upon at least thirty (30) days' notice to the qualified beneficiaries, the settlor, if living, a…
Ark. Code Ann. § 28-73-706 Removal of trustee
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(a) The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative. (b) A court may remove a trustee if:(1) the trustee has committed a serious breach of trust;(2) lack of cooperation among cotr…
Ark. Code Ann. § 28-73-707 Delivery of property by former trustee
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(a) Unless a cotrustee remains in office or a court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the tr…
Ark. Code Ann. § 28-73-708 Compensation of trustee
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(a) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. (b) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the…
Ark. Code Ann. § 28-73-709 Reimbursement of expenses
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(a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:(1) expenses that were properly incurred in the administration of the trust; and(2) to the extent necessary to prevent unjust enrichment of the trust, expenses that were not pr…
Ark. Code Ann. § 28-73-801 Duty to administer trust
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Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter.
Ark. Code Ann. § 28-73-802 Duty of loyalty
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(a) A trustee shall administer the trust solely in the interests of the beneficiaries. (b) Subject to the rights of persons dealing with or assisting the trustee as provided in § 28-73-1012, a sale, encumbrance, or other transaction involving the investment or management of trust…
Ark. Code Ann. § 28-73-803 Impartiality
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If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.
Ark. Code Ann. § 28-73-804 Prudent administration
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A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
Ark. Code Ann. § 28-73-805 Costs of administration
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In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.
Ark. Code Ann. § 28-73-806 Trustee's skills
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A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.
Ark. Code Ann. § 28-73-807 Delegation by trustee
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(a) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:(1) selecting an agent;(2) establishing the scope and terms of the delegatio…
Ark. Code Ann. § 28-73-808 [Repealed.]
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A.C.A. § 28-73-808Current through all legislation of the 2025 Regular Session.Arkansas Code of 1987 Annotated Official EditionCopyright © 2026 by the State of Arkansas All rights reserved
Ark. Code Ann. § 28-73-809 Control and protection of trust property
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A trustee shall take reasonable steps to take control of and protect the trust property.
Ark. Code Ann. § 28-73-810 Recordkeeping and identification of trust property
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(a) A trustee shall keep adequate records of the administration of the trust. (b) A trustee shall keep trust property separate from the trustee's own property. (c) Except as otherwise provided in subsection (d), a trustee shall cause the trust property to be designated so that th…
Ark. Code Ann. § 28-73-811 Enforcement and defense of claims
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A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
Ark. Code Ann. § 28-73-812 Collecting trust property
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A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee and to redress a breach of trust known to the trustee to have been committed by a former trustee.
Ark. Code Ann. § 28-73-813 Duty to inform and report
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(a) A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. Unless unreasonable under the circumstances, a trustee shall promptly respond to a …
Ark. Code Ann. § 28-73-814 Discretionary powers — Tax savings
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(a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as “absolute”, “sole”, or “uncontrolled”, the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of …
Ark. Code Ann. § 28-73-815 General powers of trustee
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(a) A trustee, without authorization by a court, may exercise:(1) powers conferred by the terms of the trust; and(2) except as limited by the terms of the trust:(A) all powers over the trust property which an unmarried competent owner has over individually owned property;(B) any …
Ark. Code Ann. § 28-73-816 Specific powers of trustee
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(1) Without limiting the authority conferred by § 28-73-815, a trustee may:(1) collect trust property and accept or reject additions to the trust property from a settlor or any other person;(2) acquire or sell property, for cash or on credit, at public or private sale;(3) exchang…
Ark. Code Ann. § 28-73-817 Distribution upon termination
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(a) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within thir…
Ark. Code Ann. § 28-73-818 Discretionary powers — Appointment of property of one trust to another trust — Circumstances authorized — Definitions
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(a) As used in this section:(1) “Pooled trust” means a trust described in 42 U.S.C. § 1396p(d)(4)(C), as it existed on January 1, 2023, that meets the requirements for that trust under any law or regulation of the State of Arkansas relating to the treatment of trusts for purposes…
Ark. Code Ann. § 28-73-901 Prudent investor rule
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(a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this subchapter. (b) The prudent investor rule, a default rule, may be expanded, …
Ark. Code Ann. § 28-73-902 Standard of care — Portfolio strategy — Risk and return objectives
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(a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (b) A …
Ark. Code Ann. § 28-73-903 Diversification
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A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
Ark. Code Ann. § 28-73-904 Duties at inception of trusteeship
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Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, …
Ark. Code Ann. § 28-73-905 Reviewing compliance
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Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
Ark. Code Ann. § 28-73-906 Language invoking standard of subchapter
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The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this subchapter: “investments permissible by law for investment of trust funds”, “legal investments”, “authorized i…