Title 28, — Appendix Administrative Order Number 12 — Official Probate Forms

(a) A person having the right to designate the recipient of property payable or transferable upon a future event may create a custodial trust upon the occurrence of the future event by designating in writing the recipient, followed in substance by: “as custodial trustee for (name…

(a) Obligations of a custodial trustee, including the obligation to follow directions of the beneficiary, arise under this subchapter upon the custodial trustee's acceptance, express or implied, of the custodial trust property. (b) The custodial trustee's acceptance may be eviden…

(a) Unless otherwise directed by an instrument designating a custodial trustee pursuant to § 28-72-403, a person, including a fiduciary other than a custodial trustee, who holds property of or owes a debt to an incapacitated individual not having a conservator may make a transfer…

(a) Beneficial interests in a custodial trust created for multiple beneficiaries are deemed to be separate custodial trusts of equal undivided interests for each beneficiary. Except in a transfer or declaration for use and benefit of husband and wife, for whom survivorship is pre…

(a) If appropriate, a custodial trustee shall register or record the instrument vesting title to custodial trust property. (b) If the beneficiary is not incapacitated, a custodial trustee shall follow the directions of the beneficiary in the management, control, investment, or re…

(a) A custodial trustee, acting in fiduciary capacity, has all the rights and powers of custodial trust property which an unmarried adult owner has over individually owned property, but a custodial trustee may exercise those rights and powers in a fiduciary capacity only. (b) Thi…

(a) A custodial trustee shall pay to the beneficiary or expend for the beneficiary's use and benefit so much or all of the custodial trust property as the beneficiary while not incapacitated may direct from time to time. (b) If the beneficiary is incapacitated, the custodial trus…

(a) The custodial trustee shall administer the custodial trust as for an incapacitated beneficiary if (i) the custodial trust was created under § 28-72-405, (ii) the transferor has so directed in the instrument creating the custodial trust, or (iii) the custodial trustee has dete…

(1) A third person in good faith and without a court order may act on instructions of, or otherwise deal with, a person purporting to make a transfer as, or purporting to act in the capacity of, a custodial trustee. In the absence of knowledge to the contrary, the third person is…

(a) A claim based on a contract entered into by a custodial trustee acting in a fiduciary capacity, an obligation arising from the ownership or control of custodial trust property, or a tort committed in the course of administering the custodial trust, may be asserted by a third …

(a) Before accepting the custodial trust property, a person designated as custodial trustee may decline to serve by notifying the person who made the designation, the transferor, or the transferor's legal representative. If an event giving rise to a transfer has not occurred, the…

(1) Except as otherwise provided in the instrument creating the custodial trust, in an agreement with the beneficiary, or by court order, a custodial trustee:(1) is entitled to reimbursement from custodial trust property for reasonable expenses incurred in the performance of fidu…

(a) Upon the acceptance of custodial trust property, the custodial trustee shall provide a written statement describing the custodial trust property and shall thereafter provide a written statement of the administration of the custodial trust property (i) once each year, (ii) upo…

(a) Except as provided in subsection (c), unless previously barred by adjudication, consent, or limitation, a claim for relief against a custodial trustee for accounting or breach of duty is barred as to a beneficiary, a person to whom custodial trust property is to be paid or de…

(a) Upon termination of a custodial trust, the custodial trustee shall transfer the unexpended custodial trust property:(1) to the beneficiary, if not incapacitated or deceased;(2) to the conservator or other recipient designated by the court for an incapacitated beneficiary; or(…

(a) If a transaction, including a declaration with respect to or a transfer of specific property, otherwise satisfies applicable law, the criteria of § 28-72-402 are satisfied by:(1) The execution and either delivery to the custodial trustee or recording of an instrument in subst…

(a) This subchapter applies to a transfer or declaration creating a custodial trust that refers to this subchapter if, at the time of the transfer or declaration, the transferor, beneficiary, or custodial trustee is a resident of or has its principal place of business in this sta…

This subchapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this subchapter among states enacting it.

This subchapter may be cited as the “Arkansas Custodial Trust Act.”

If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisio…

This subchapter shall be known as the “Long-Term Intergenerational Security Act of 1995”.

(a) It is found and declared by the General Assembly that the establishment of a long-term intergenerational security trust with tax deferment provisions for an individual under eighteen (18) years of age will enable the individual's family and friends to take advantage of long-t…

For purposes of this subchapter, “long-term intergenerational security trust” means a trust established for an individual under eighteen (18) years of age which contains the provisions prescribed in § 28-72-504(a).

(a) The long-term intergenerational security trust agreement must:(1) Name an Arkansas resident or an entity located in Arkansas as trustee;(2) Provide that contributions to the trust shall not exceed four thousand dollars ($4,000) during any taxable year prior to the beneficiary…

(a) (1) All distributions of funds from the long-term intergenerational security trust shall be taxable as provided in the Income Tax Act of 1929.(2) All distributions from the trust shall be deemed principal until all contributions of principal have been withdrawn. (1) All distr…

Upon reaching eighteen (18) years of age, the beneficiary of a long-term intergenerational security trust may determine, to the extent possible, the manner in which the funds are to be invested.

Upon the death of the beneficiary, all funds remaining in the long-term intergenerational security trust shall be distributed to the beneficiary's estate, and all undistributed income shall be included in the beneficiary's final tax return.

(1) As used in this subchapter:(1) “Property” means an interest in any type of property that is:(A) Held in a qualified spousal trust;(B) Income earned from property held in a qualified spousal trust; and(C) Property into which the interest, proceeds, or income earned from proper…

(a) A qualified spousal trust may include a trust term that is not inconsistent with the provisions of this subchapter, including without limitation a discretionary power to distribute trust property to a person other than a settlor. (b) (1) Unless otherwise provided in writing b…

(a) After the death of both settlors, all property held by the trustee of the qualified spousal trust shall be distributed as directed by the then-current terms of the governing instrument of the qualified spousal trust. (b) After the death of the first settlor, if immediately be…

For purposes of the dissolution of the marriage of the settlors, the respective property rights of settlors who are married to each other shall not be affected or changed by the transfer of the property to, or the subsequent administration of the property as an asset of, a qualif…

(a) The provisions of this subchapter are subject to the Uniform Voidable Transactions Act, § 4-59-201 et seq. (b) This subchapter applies to a trust that meets the description and requirements of a qualified spousal trust under this subchapter regardless of whether the trust was…

(1) As used in this subchapter:(1) “Adviser” means any person, including without limitation an accountant, attorney, or investment adviser, who gives advice concerning or was involved in the creation of, transfer of property to, or administration of a spendthrift trust or domesti…

(a) Unless the document that creates the spendthrift trust or domestic asset protection trust expressly declares otherwise, this subchapter governs the construction, operation, and enforcement of all spendthrift trusts or domestic asset protection trusts in the State of Arkansas,…

(a) A person competent to execute a will or deed may, only by a document that is duly executed, create a spendthrift trust in real, personal, or mixed property for the benefit of:(1) A person other than the settlor; or(2) For a domestic asset protection trust, the settlor or both…

(a) The settlor of a spendthrift trust or domestic asset protection trust has only the powers and rights that are conferred to the settlor by the trust instrument. (b) An agreement or understanding, express or implied, between the settlor and the trustee that attempts to grant or…

(a) The beneficiary of a spendthrift trust or domestic asset protection trust shall be named or clearly referred to in the document. (b) No spouse, former spouse, child, or dependent shall be a beneficiary unless the person is named or clearly referred to as a beneficiary in the …

(a) The trustee's discretionary power is absolute, regardless of whether a valid provision for the accumulation of trust income is made or if the provision relates to the trust income from real or personal property, in all cases where the creator of a spendthrift trust or domesti…

(a) (1) A spendthrift trust or domestic asset protection trust restrains and prohibits the assignment, alienation, acceleration, and anticipation of any interest of the beneficiary under the trust by the voluntary or involuntary act of the beneficiary, by operation of law, or any…

(a) A beneficiary of a spendthrift trust or domestic asset protection trust has no legal estate in the capital, principal, or corpus of the trust estate unless under the terms of the trust the beneficiary or a person deriving title from the beneficiary is entitled to have it conv…

(a) A spendthrift trust or domestic asset protection trust may not continue for a period longer than permitted under § 18-3-101 et seq. (b) (1) The free alienation of the legal estate by the trustee may not be suspended for a period exceeding the limit prescribed in any constitut…

(a) The accumulation of income of trust property may be directed in the document creating a spendthrift trust or domestic asset protection trust for the benefit of one (1) or more beneficiaries to commence within the time permitted for the vesting of a future interest, but shall …

A settlor of a spendthrift trust or domestic asset protection trust may by a document creating a spendthrift trust or domestic asset protection trust make separate, different, or alternate provisions other than what is set forth in §§ 28-72-701 — 28-72-710, so long as the settlor…

(a) A person may not bring an action with respect to a transfer of property to a spendthrift trust or domestic asset protection trust if the person:(1) Is a creditor when the transfer is made, unless the action is commenced within:(A) Two (2) years after the transfer is made; or(…

(a) A trust administered under the laws of another state or another jurisdiction is a spendthrift trust or domestic asset protection trust under this subchapter if the:(1) Trustee of the trust complies with the requirements set forth in the trust instrument and the requirements o…

This subchapter applies to a trust or estate existing or created on or after August 1, 2023, except as otherwise expressly provided in the terms of the trust or this subchapter.