Life Estate Deed (Reserved Life Estate) - Arkansas

IMPORTANT LEGAL NOTICE
This is a TRADITIONAL RESERVED LIFE ESTATE DEED. The Grantor conveys the remainder in the Property to the Remainderman while RESERVING a life estate for the life of the named Life Tenant. The Life Tenant keeps exclusive use and possession for life; at the Life Tenant's death, the already-conveyed remainder becomes possessory, outside the Life Tenant's probate estate. Once delivered and recorded, this deed is IRREVOCABLE and creates a present, vested remainder interest in the Remainderman.

THIS IS NOT A "LADY BIRD" / ENHANCED LIFE ESTATE DEED.
In a traditional reserved life estate (this form), the Life Tenant CANNOT sell, mortgage, gift, or revoke the fee without the Remainderman joining in the conveyance. By contrast, an enhanced life estate ("Lady Bird") deed reserves to the grantor the unilateral power to sell, mortgage, or revoke during life without the remainderman's consent. If you want that retained power, use the separate Lady Bird / Enhanced Life Estate Deed template — not this one.

LIFE ESTATE DEED (RESERVED LIFE ESTATE)

State of Arkansas

RECORDING INFORMATION

After Recording Return To:

Name: ________________________________________
Address: _____________________________________
City, State, ZIP: _____________________________

Prepared By:

Name: ________________________________________
Address: _____________________________________
Arkansas Bar No. (if attorney): _______________

DEED INFORMATION

TRANSFER TAX

Transfer Tax Exemptions (Ark. Code Ann. § 26-60-102)

☐ Gift or conveyance for $100 or less (a gratuitous reserved-life-estate deed for love and affection is typically exempt; state the exemption)
☐ Deed to/from United States or State of Arkansas
☐ Deed to correct or replace prior deed where tax was paid
☐ Other exemption: ________________________________

PARTIES

GRANTOR (Current Owner):

Name: [GRANTOR FULL LEGAL NAME]

Mailing Address: [FULL ADDRESS]

Marital Status:
☐ A single person
☐ A married person, spouse joining (RECOMMENDED — Arkansas recognizes dower and curtesy)
☐ A married person, conveying separate property

REMAINDERMAN (Grantee of the Remainder):

Name: [REMAINDERMAN FULL LEGAL NAME]

Mailing Address: [FULL ADDRESS]

Manner of Holding the Remainder (if more than one):
☐ As a single person
☐ As joint tenants with right of survivorship
☐ As tenants in common (____% and ____%)
☐ As husband and wife as tenants by the entirety

LIFE TENANT (Measuring Life):

Name: [LIFE TENANT FULL LEGAL NAME]

☐ The Life Tenant is the Grantor (the Grantor reserves the life estate to himself/herself).
☐ The Life Tenant is a person other than the Grantor, named below; the life estate is reserved for the life of: [NAME]

Measuring Life: The life estate shall continue for the life of [NAME OF MEASURING LIFE].

CONVEYANCE

Recital of Consideration

KNOW ALL MEN BY THESE PRESENTS:

That [GRANTOR NAME] ("Grantor"), of [COUNTY] County, Arkansas, for and in consideration of love and affection and the sum of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged,

Granting Clause (Conveyance of the Remainder; Reservation of Life Estate)

does hereby GRANT, BARGAIN, SELL, AND CONVEY unto [REMAINDERMAN NAME] ("Remainderman"), and to the Remainderman's heirs and assigns forever, the remainder in fee simple in and to all that certain real property situated in [COUNTY] County, Arkansas, more particularly described in Exhibit A attached hereto and made a part hereof (the "Property"), RESERVING, HOWEVER, unto [the Grantor / [LIFE TENANT NAME]] ("Life Tenant"), a life estate in the Property for the life of [NAME OF MEASURING LIFE].

TO HAVE AND TO HOLD the remainder in the Property, together with all rights, privileges, tenements, hereditaments, and appurtenances thereto belonging, unto the Remainderman, the Remainderman's heirs, successors, and assigns forever, subject only to the reserved life estate described herein.

RESERVATION OF LIFE ESTATE

The Life Tenant hereby reserves and shall hold, during the continuance of the life estate, the following rights and obligations:

Rights of the Life Tenant. The exclusive right to use, occupy, possess, and enjoy the Property and to receive all rents, issues, and profits therefrom for the duration of the measuring life.

Obligations of the Life Tenant. During the life estate, the Life Tenant shall:

☐ Pay all real property taxes and special assessments as they come due;
☐ Maintain hazard/homeowner's insurance on the improvements naming the Remainderman as an additional insured to the extent of the Remainderman's interest;
☐ Pay the cost of ordinary maintenance and repairs and keep the Property in good condition;
☐ Pay interest on, and keep current, any mortgage or lien existing on the date of this deed.

Duty Not to Commit Waste. The Life Tenant shall not commit, suffer, or permit waste (voluntary, permissive, or ameliorative) to the injury of the remainder interest. Under Arkansas common law, a life tenant who diminishes the value of the inheritance is liable to the Remainderman, who may seek damages or injunctive relief and, where entitled to possession, may proceed under Ark. Code Ann. § 18-60-201. The Life Tenant shall use the Property as would an ordinarily prudent owner, doing no act that permanently injures the remainder.

REMAINDER / VESTING

Upon the death of [NAME OF MEASURING LIFE], the reserved life estate shall terminate, and the previously conveyed remainder shall become possessory without a further conveyance by the Life Tenant.

If a Remainderman predeceases the Life Tenant:
☐ The deceased Remainderman's share shall pass to that Remainderman's issue, per stirpes (vested remainder, descendible).
☐ The deceased Remainderman's share shall pass to the surviving Remainderman(en) (joint tenancy with right of survivorship among the Remaindermen).

LIMITATIONS (TRADITIONAL — CONTRAST LADY BIRD)

This is a traditional irrevocable reserved life estate. Accordingly:

• The Life Tenant cannot sell, convey, mortgage, encumber, partition, or otherwise transfer the fee in the Property without the Remainderman joining in the instrument.
• The Life Tenant may transfer or release only the Life Tenant's own life-estate interest (which ends at the measuring life's death).
• The Remainderman's interest is a present, vested remainder that is not defeated by any act of the Life Tenant alone.
• The Grantor does not reserve any power to revoke, cancel, or unilaterally convey the fee. (A reserved power to sell/revoke without remainderman consent would make this an enhanced/"Lady Bird" deed — which this instrument is NOT.)

WARRANTY

The remainder conveyed herein is conveyed with the following covenant (select one):

☐ General Warranty — Grantor warrants and will forever defend the remainder against the lawful claims of all persons.
☐ Special Warranty — Grantor warrants the remainder only against claims arising by, through, or under Grantor.
☐ Quitclaim — Grantor conveys the remainder without warranty of title.

SUBJECT TO

This conveyance is made and accepted SUBJECT TO:

☐ Taxes and assessments for the current year and subsequent years, not yet due and payable
☐ Visible and apparent easements; all recorded restrictions, reservations, covenants, conditions, and easements
☐ Building and zoning laws and regulations
☐ Any existing mortgage or deed of trust of record (the parties should confirm any due-on-transfer clause before recording)
☐ Other: ________________________________

TAX, MEDICAID, AND ESTATE-PLANNING NOTE

Medicaid 5-year lookback. Conveying the remainder while reserving a life estate is a transfer of an asset for Medicaid long-term-care eligibility. It may trigger a transfer penalty if made within the 60-month (5-year) lookback period. Only the actuarial value of the remainder (not the retained life estate) is generally treated as transferred; verify Arkansas DHS/DCO treatment.

Estate inclusion and basis (IRC §§ 2036 and 1014). If the Grantor retains possession or enjoyment of the transferred property for life, IRC § 2036 generally includes the affected interest in the Grantor's gross estate at the Grantor's death, except for a qualifying bona fide sale for adequate and full consideration. A life estate granted to someone other than the Grantor does not by itself establish that the Grantor retained an interest under § 2036. IRC § 1014 separately governs whether the Remainderman receives a basis adjustment when the property passes from a decedent; have tax counsel assess the deed and the parties' actual interests.

Gift tax (Form 709). The conveyance of the remainder is a completed gift of a future interest. The annual exclusion does not apply to gifts of future interests, so a Form 709 gift tax return should be filed even if no tax is due. The taxable gift equals the actuarial value of the remainder, computed from the value of the Property and the measuring life using the IRS § 7520 rate and actuarial tables.

EXECUTION

EXECUTED this _____ day of _________________, 20_____.

GRANTOR SIGNATURE(S)

Individual Grantor:

________________________________________
[GRANTOR NAME]

Spouse of Grantor (RECOMMENDED to release dower/curtesy):

________________________________________
[SPOUSE NAME]

OPTIONAL WITNESS SIGNATURES (Two Disinterested Witnesses under Ark. Code Ann. § 18-12-104)

IMPORTANT: Section 18-12-104 states a two-disinterested-witness execution route. Arkansas Supreme Court authority also recognizes a deed duly acknowledged as required by law as effective without subscribing witnesses. Do not require these witness signatures in addition to the acknowledgment below.

Witness 1:
________________________________________
Printed Name: ___________________________
Date Witnessed: _________________________

Witness 2:
________________________________________
Printed Name: ___________________________
Date Witnessed: _________________________

ACKNOWLEDGMENT (Ark. Code Ann. §§ 18-12-201, 18-12-205)

STATE OF ARKANSAS       )
                        ) ss.
COUNTY OF _____________ )

On this _____ day of _________________, 20_____, before me, the
undersigned Notary Public, within and for said County and State,
personally appeared ____________________________________________,
to me known to be the identical person(s) who executed the within
and foregoing instrument, and acknowledged that he/she/they executed
the same as his/her/their free and voluntary act and deed for the
uses and purposes therein set forth.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year first above written.

________________________________________
Notary Public
My Commission Expires: _________________

[NOTARY SEAL]

EXHIBIT A — LEGAL DESCRIPTION

Property Address:
[STREET ADDRESS]
[CITY], Arkansas [ZIP]

Parcel Identification Number: [NUMBER]

Legal Description:

[INSERT COMPLETE LEGAL DESCRIPTION FROM TITLE COMMITMENT OR SURVEY]

Example formats:

• Lot ___, Block ___, [SUBDIVISION NAME], an addition to the City of [CITY], [COUNTY] County, Arkansas, as per plat recorded in Plat Book ___, Page ___, of the records of [COUNTY] County, Arkansas.
• Part of the [DIRECTION] Quarter of the [DIRECTION] Quarter of Section ___, Township ___ [NORTH/SOUTH], Range ___ [EAST/WEST], [COUNTY] County, Arkansas, more particularly described as: [METES AND BOUNDS]

County: [COUNTY], Arkansas

ARKANSAS RECORDING REQUIREMENTS

• Filing Office: Circuit Clerk, [COUNTY] County, Arkansas
• Recording Fee: Varies by county (check with Circuit Clerk)
• Transfer Tax: $3.30 per $1,000 of consideration (gratuitous gift deeds may be exempt — state the exemption)

Document Requirements

☐ Original signatures in black or blue ink
☐ Either two-disinterested-witness execution under Ark. Code Ann. § 18-12-104 or a proper acknowledgment for recording
☐ Grantee's (Remainderman's) name and address shown
☐ Transfer tax paid or exemption stated; Tax Compliance Affidavit if required
☐ Legible, minimum 8-point font

Dower and Curtesy Notice

IMPORTANT: Arkansas continues to recognize traditional dower and curtesy rights. Both spouses should sign a deed transferring or reserving an interest in real estate owned by either spouse, even if the Property is not a homestead.

SOURCES AND REFERENCES

• Ark. Code Ann. § 18-12-104 (two-disinterested-witness execution route; duly acknowledged execution is an effective alternative)
• Ark. Code Ann. §§ 18-12-201, 18-12-205 (acknowledgment for recording)
• Ark. Code Ann. § 18-60-201 (ejectment; right to possession)
• Ark. Code Ann. § 18-16-103 (rent collection by personal representative of life tenant)
• Ark. Code Ann. § 26-60-101 et seq. (Real Property Transfer Tax)
• 26 U.S.C. § 2036 (retained life estate; estate inclusion); 26 U.S.C. § 1014 (step-up in basis)
• IRS Form 709 and § 7520 actuarial tables (gift of remainder)

This template is provided for informational purposes only and does not constitute legal advice. Consult with a licensed Arkansas attorney before using this form.

Last Updated: 2026-06-14