Creating a revocable living trust is one of the most brilliant things you can do for yourself and your family. It is an excellent way to protect your assets while also ensuring that the affairs of your loved ones are taken care of in the event of death or incapacity.
The Arkansas revocable living trust allows you to create a trust and transfer ownership of your assets. It is optional to create a living trust in Arkansas, but you may want to consider it due to the vast purposes it serves, such as:
To provide for your spouse and children in the event of your death or incapacity: If you die or become incapacitated, the trust can be used to provide for your spouse and children. These include paying your mortgage, car payments, credit card debt, and other bills. It can also be used to provide income for your family.
Avoid probate: Probate is the legal process of settling your estate after passing away. Probate can be time-consuming and expensive. With Arkansas living trust, your assets will not have to go through probate.
Preserves privacy: When you die, your Will is a matter of public record. However, a living trust is not. This means that your assets will be distributed according to your wishes, without the need for probate or the concern of your family's privacy being violated.
What You Need to Know About the Arkansas Revocable Living Trust Form
The person who creates the trust is called the grantor. The grantor appoints a trustee who will manage the trust's assets. The beneficiary is the person who will receive the assets of the trust.
The Arkansas revocable living trust allows you to name a successor trustee, who will take over if the original trustee is unable or unwilling to serve.
The Arkansas revocable living trust also allows you to name a protector, who will have the power to remove and replace the trustee. The protector can be used to protect the beneficiaries from a trustee who is not acting in their best interests.
The Arkansas revocable living trust allows you to choose how your assets will be distributed upon death. You can leave your assets to your spouse, children, or other loved ones. You can also use the trust to provide for charitable organizations.
Frequently Asked Questions About a Living Trust in Arkansas
Unlike other states, Arkansas has not adopted the Uniform Probate Code, but it still offers a simplified probate process for small estates. With this, the inheritors to your trust can skip the probate process using a simpler affidavit process for estates valued at $100,000 or less (excluding the homestead).
Another applicable probate shortcut is distribution without administration. This one goes for properties that are not real estate. You can also use the transfer-on-death deed to keep your property out of probate. All these options eliminate the need for probate as well as the worry of creating a living trust.
Do you need a will after creating a living trust in Arkansas? Yes, you will need a Will, mainly if you want to address guardianship for minor children. Also, you may still need a Will if you want to account for properties that have yet to be transferred into your trust.
So, how does a living trust related to estate tax in Arkansas? A living trust in Arkansas is less likely to reduce your estate tax because the federal estate tax is levied only on estates valued at $12 million ($24 million in case of joint estate of spouse). Still, you can use a more complicated trust like AB to avoid or reduce estate taxes.
How Do I Create an Arkansas Revocable Living Trust?
The first step in creating an Arkansas revocable living trust is to fill in a form by providing the following information:
Your name and contact information
The names and contact information of your spouse and children
These information of your successor trustee
The information of your protector
Your instructions for how you want your assets to be distributed upon your death
If you need assistance creating a living trust in Arkansas, Forms. legal can help you get started. Fill the above form with required details, download and print.