REVOCABLE LIVING TRUST AGREEMENT
(Arkansas – Court-Ready Template)
[// GUIDANCE: This template is designed for Arkansas‐domiciled Settlors. Counsel should tailor all bracketed items, verify funding deeds/assignments, and confirm consistency with each client’s estate plan.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Creation, Purpose & Funding of Trust
- Revocation, Amendment & Termination
- Distributions During Settlor’s Lifetime
- Distributions Upon Settlor’s Incapacity
- Distributions Upon Settlor’s Death
- Trustee Provisions
- Successor Trustee Provisions
- Trustee Powers
- Accounts, Reports & Tax Matters
- Default, Removal & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Schedule A – Initial Trust Estate
- Schedule B – Successor Trustee Acceptance
1. DOCUMENT HEADER
REVOCABLE LIVING TRUST AGREEMENT
(“Agreement”)
This Agreement is made as of [EFFECTIVE DATE] (the “Effective Date”), by and between:
- [SETTLOR FULL LEGAL NAME], residing at [ADDRESS] (“Settlor”); and
- [TRUSTEE FULL LEGAL NAME], residing at [ADDRESS] (“Trustee”).
1.1 Recitals
A. Settlor desires to create a revocable trust pursuant to Ark. Code Ann. § 28-73-402 and related provisions of the Arkansas Trust Code (the “Arkansas Trust Code”).
B. Trustee is willing to accept the trust and administer the Trust Estate (as defined below) in accordance with the terms herein.
C. The parties therefore agree as follows:
2. DEFINITIONS
For purposes of this Agreement, capitalized terms have the meanings set forth below. Undefined capitalized terms shall be interpreted in context in a manner consistent with the Arkansas Trust Code.
“Accounting Period” – Each calendar year ending December 31, or such other period selected by the Trustee consistent with IRC § 645 and applicable Treasury Regulations.
“Arkansas Trust Code” – Ark. Code Ann. §§ 28-73-101 et seq., as amended.
“Beneficiary” – Any person or entity entitled to current or future distributions from the Trust Estate.
“Disability Certificate” – A written statement signed by two (2) licensed physicians, each of whom has examined the Settlor and concluded that the Settlor is unable to manage his or her affairs.
“Dispositive Provisions” – Sections 5 through 7, governing distributions of income and principal.
“Trust Estate” – All property transferred to the Trustee, together with all additions, substitutions, accretions and reinvestments.
“Trustee” – The initial Trustee and any Successor Trustee acting hereunder.
[// GUIDANCE: Add or modify definitions to align with client circumstances, e.g., “Spouse,” “Issue,” “Qualified Beneficiary,” etc.]
3. CREATION, PURPOSE & FUNDING OF TRUST
3.1 Creation. Settlor hereby transfers, assigns and delivers to the Trustee the property described in Schedule A, receipt of which the Trustee acknowledges, to hold in trust under the terms of this Agreement.
3.2 Purpose. The purposes of this Trust are to:
a. Provide for the Settlor during life;
b. Facilitate continuity of property management upon Settlor’s incapacity;
c. Avoid probate of the Trust Estate upon Settlor’s death; and
d. Distribute the Trust Estate to or for the benefit of the Beneficiaries in accordance with the Dispositive Provisions.
3.3 Additional Funding. Settlor may transfer additional property to the Trust at any time by assignment, deed, beneficiary designation, or other written instrument. The Trustee shall accept all such property, provided title is marketable and free of undisclosed liens.
3.4 Real Property Transfers. Real estate located in Arkansas shall be conveyed to the Trustee by recordable Warranty Deed or Quitclaim Deed and recorded in the county where the property is situated.
3.5 Tangible & Intangible Property. a. Tangible personal property shall be transferred by bill of sale or specific assignment.
b. Intangible property (including securities, bank accounts and digital assets) shall be transferred by assignment, change of ownership, or beneficiary designation naming the Trustee.
4. REVOCATION, AMENDMENT & TERMINATION
4.1 Settlor’s Reserved Powers. During Settlor’s lifetime and capacity, the Settlor reserves the right to revoke or amend this Agreement, in whole or in part, by a written instrument signed by Settlor and delivered to the Trustee, pursuant to Ark. Code Ann. § 28-73-602.
4.2 Partial Revocation. Settlor may withdraw any asset from the Trust Estate by written direction to the Trustee.
4.3 Automatic Termination. This Trust shall terminate when the Trust Estate has been distributed in accordance with Section 7.
4.4 Distribution on Termination. Upon termination, the Trustee shall distribute the remaining Trust Estate to the persons entitled thereto, free of trust, subject to the Trustee’s right to retain a reasonable reserve for expenses and to receive indemnification.
5. DISTRIBUTIONS DURING SETTLOR’S LIFETIME
5.1 Income & Principal. During Settlor’s lifetime and capacity, the Trustee shall distribute to the Settlor, or apply for the Settlor’s benefit, as much of the net income and principal as the Settlor may request from time to time.
5.2 Tax Reimbursements. The Trustee may pay any income, gift or other taxes attributable to the Trust Estate directly to the Settlor or to the appropriate taxing authority.
6. DISTRIBUTIONS UPON SETTLOR’S INCAPACITY
6.1 Determination of Incapacity. Settlor shall be deemed incapacitated upon receipt by the Trustee of a Disability Certificate.
6.2 Standard of Living. During incapacity, the Trustee shall distribute or apply for Settlor’s health, support, maintenance and comfort such amounts of income and principal as the Trustee, in sole discretion, deems advisable, considering other available resources known to the Trustee.
6.3 Anti-Alienation. No Beneficiary shall have any power to anticipate, assign or encumber distributions under this Section.
7. DISTRIBUTIONS UPON SETTLOR’S DEATH
7.1 Administrative Expenses & Taxes. The Trustee shall first pay:
a. Settlor’s legally enforceable debts, funeral and last illness expenses;
b. Expenses of administering Settlor’s probate estate (if any); and
c. Federal and state death taxes attributable to the Trust Estate.
7.2 Specific Bequests. The Trustee shall distribute the following property free of trust:
• [DESCRIPTION] to [BENEFICIARY]
[// GUIDANCE: List specific bequests or delete this subsection.]
7.3 Residuary Distribution. The balance of the Trust Estate shall be distributed as follows:
a. [PERCENTAGE]% to [RESIDUARY BENEFICIARY #1];
b. [PERCENTAGE]% to [RESIDUARY BENEFICIARY #2]; etc.
7.4 Contingent Beneficiaries. If no named Beneficiary survives the Settlor, the Trust Estate shall be distributed to [CHARITABLE ORGANIZATION / HEIRS-AT-LAW].
8. TRUSTEE PROVISIONS
8.1 Acceptance of Trusteeship. The Trustee accepts the trusteeship and agrees to administer the Trust Estate in good faith, in accordance with the terms of this Agreement and the Arkansas Trust Code.
8.2 Bond. No bond shall be required of any Trustee unless ordered by a court of competent jurisdiction.
8.3 Compensation. Each Trustee shall be entitled to reasonable compensation in accordance with Ark. Code Ann. § 28-73-708 or a separate fee schedule agreed with Settlor.
8.4 Reimbursement. The Trustee shall be reimbursed for reasonable expenses properly incurred in the administration of the Trust.
9. SUCCESSOR TRUSTEE PROVISIONS
9.1 Designated Successor Trustees.
a. First Successor Trustee: [NAME]
b. Second Successor Trustee: [NAME]
9.2 Vacancy. A vacancy in the office of Trustee occurs upon resignation, removal, incapacity or death of the Trustee.
9.3 Resignation. A Trustee may resign by giving at least thirty (30) days’ written notice to the Settlor (if living) and to all Qualified Beneficiaries, in accordance with Ark. Code Ann. § 28-73-705.
9.4 Removal. The Settlor (if living) or a majority of Qualified Beneficiaries may remove a Trustee for cause, or a court of competent jurisdiction may remove a Trustee under Ark. Code Ann. § 28-73-706.
9.5 Appointment Procedure. The next-listed Successor Trustee shall assume office by executing Schedule B and providing notice to the Qualified Beneficiaries. If no designated Successor Trustee is able or willing to serve, the Qualified Beneficiaries may appoint a Trustee by majority vote, or any Beneficiary may petition the state probate court for appointment.
9.6 Title & Rights. Upon acceptance, the Successor Trustee shall have all the rights, powers, duties and immunities of the original Trustee.
10. TRUSTEE POWERS
The Trustee shall have, without court order, all powers granted trustees under the Arkansas Trust Code, including but not limited to the following:
10.1 Investment Powers. Buy, sell, exchange, or otherwise deal with any real or personal property; exercise options, warrants and conversion privileges.
10.2 Manage Real Property. Lease (for any term), improve, partition, or sell real estate; dedicate easements; and execute deeds of trust.
10.3 Borrowing. Borrow money and encumber the Trust Estate by mortgage, deed of trust, or pledge, limited to the assets of the Trust Estate.
10.4 Delegation. Delegate investment or management functions to qualified agents pursuant to Ark. Code Ann. § 28-73-807.
10.5 Digital Assets. Access, manage and control any digital assets of Settlor, subject to the Arkansas Revised Uniform Fiduciary Access to Digital Assets Act.
10.6 Miscellaneous Powers. All powers necessary or appropriate to carry out the purposes of this Trust, whether or not specifically enumerated.
[// GUIDANCE: Consider incorporating restrictions for corporate fiduciaries, ESG investment policies, or directed trust structures when applicable.]
11. ACCOUNTS, REPORTS & TAX MATTERS
11.1 Annual Accountings. The Trustee shall furnish to each Qualified Beneficiary within 90 days after the close of each Accounting Period a written report of receipts, disbursements, assets and liabilities.
11.2 Interim Reports. Upon reasonable request, the Trustee shall provide additional reports to any Qualified Beneficiary.
11.3 Tax Returns. The Trustee shall file all required federal and state fiduciary income tax returns and shall furnish necessary K-1s or comparable statements to Beneficiaries.
11.4 Tax Elections. The Trustee may make any tax election deemed advisable, including elections under IRC §§ 645, 6166, and (h).
12. DEFAULT, REMOVAL & REMEDIES
12.1 Events of Default. The following constitute default by a Trustee:
a. Willful breach of trust;
b. Gross negligence or reckless conduct in administration;
c. Failure to render required accountings within 30 days after written notice;
d. Persistent failure to administer the Trust effectively.
12.2 Notice & Cure. Qualified Beneficiaries may deliver written notice of default to the Trustee, who shall have 30 days to cure.
12.3 Remedies. If default is not cured, Qualified Beneficiaries may:
a. Remove the Trustee under Section 9.4;
b. Seek surcharge for damages;
c. Petition the probate court for injunction, appointment of a receiver, or other equitable relief.
12.4 Attorney Fees. In any action arising out of this Agreement, the prevailing party shall be entitled to reasonable attorney fees and costs, payable from the Trust Estate unless otherwise ordered by the court.
13. RISK ALLOCATION
13.1 Trustee Indemnification. Except for acts of willful misconduct or bad faith, the Trustee shall be indemnified and held harmless out of the Trust Estate from and against any and all claims, liabilities and expenses arising from the administration of the Trust.
13.2 Limitation of Liability. Any liability of the Trustee shall be limited to the total value of the Trust Estate; no personal assets of the Trustee shall be subject to any claim relating to the Trust.
13.3 Insurance. The Trustee may purchase fiduciary liability insurance, premiums payable from the Trust Estate.
13.4 Force Majeure. The Trustee shall not be liable for losses caused directly or indirectly by acts of God, war, civil unrest, epidemic or other events beyond the Trustee’s reasonable control.
14. DISPUTE RESOLUTION
14.1 Governing Law. This Agreement and all disputes arising hereunder shall be governed by the laws of the State of Arkansas, without regard to conflicts-of-law principles.
14.2 Forum Selection. Unless resolved by arbitration pursuant to Section 14.3, any proceeding shall be filed exclusively in the [NAME OF COUNTY] Circuit Court, Probate Division.
14.3 Arbitration – Optional. All parties may agree in writing to submit any dispute to binding arbitration administered by the American Arbitration Association pursuant to its Commercial Arbitration Rules, with seat in [CITY, AR]. The arbitrator shall have authority to grant injunctive relief to enforce the terms of this Trust.
14.4 Injunctive Relief. A party may seek temporary, preliminary or permanent injunctive relief from the probate court to preserve Trust assets or enforce fiduciary duties, notwithstanding Section 14.3.
14.5 Jury Trial Waiver. No jury trial is available in probate proceedings; to the extent a jury trial might otherwise be available, the parties knowingly waive it.
15. GENERAL PROVISIONS
15.1 Amendment & Waiver. Except as otherwise provided in Section 4, no amendment or waiver of any provision shall be effective unless in writing and signed by the Settlor (if living) and the Trustee.
15.2 Assignment. No Beneficiary may assign, hypothecate or otherwise transfer any interest in the Trust Estate, except with the Trustee’s prior written consent.
15.3 Spendthrift. To the maximum extent permitted by law, the interest of any Beneficiary shall not be subject to creditor claims, legal process, or voluntary/involuntary transfer.
15.4 Severability. If any provision is held unenforceable, the remainder shall be given effect to the fullest extent permitted by law.
15.5 Entire Agreement. This Agreement constitutes the entire trust agreement between Settlor and Trustee.
15.6 Counterparts & Electronic Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original. Signatures delivered electronically or by facsimile shall be deemed original and binding.
15.7 Headings. Section headings are for convenience only and shall not affect interpretation.
15.8 Successors & Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns.
15.9 No Merger with Will. This Agreement is independent of any last will and testament of the Settlor; provisions of Settlor’s will shall not merge with or modify this Trust unless expressly stated.
16. EXECUTION BLOCK
IN WITNESS WHEREOF, the Settlor and the Trustee have executed this Revocable Living Trust Agreement as of the Effective Date first written above.
| _______ | _______ |
|---|---|
| [SETTLOR NAME], Settlor | Date |
| ____ | ____ |
| [TRUSTEE NAME], Trustee | Date |
NOTARY ACKNOWLEDGMENT (Arkansas)
State of Arkansas
County of [__]
On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [SETTLOR NAME], proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to this instrument, and acknowledged that he/she executed the same for the purposes therein contained.
Witness my hand and official seal.
Notary Public
My Commission Expires: ____
[Repeat acknowledgment for Trustee or combine, as local practice permits.]
17. SCHEDULE A – INITIAL TRUST ESTATE
- Checking Account No. [_____] at [BANK], approximately $[AMOUNT].
- Real property: Lot [], Block [], [SUBDIVISION], [COUNTY] County, Arkansas, more particularly described in the attached Exhibit A.
- Brokerage Account No. [_____] at [BROKERAGE].
- Tangible personal property per attached Assignment.
[// GUIDANCE: Attach deeds/bills of sale/assignments as exhibits and record as required.]
18. SCHEDULE B – SUCCESSOR TRUSTEE ACCEPTANCE
I, [SUCCESSOR TRUSTEE NAME], hereby accept appointment as Successor Trustee under the Revocable Living Trust Agreement dated [EFFECTIVE DATE] and agree to administer the Trust Estate in accordance with its terms and applicable law.
[SUCCESSOR TRUSTEE NAME]
Date: ________
[// GUIDANCE: Review Arkansas statutory notice requirements upon assumption of trusteeship; deliver acceptance and any change in fiduciary capacity to Qualified Beneficiaries promptly.]
END OF DOCUMENT