§ 28-72-702 — Applicability - Third-party spendthrift trust and domestic asset protection trust - Requirements

(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, regardless of whether the trust was created in or outside of the State of Arkansas, if: (1) All or part of the lands, rents, issues, or profits affected are in the State of Arkansas; (2) All or part of the personal property, interest of money, dividends upon stock, and other profits affected are in the State of Arkansas; (3) The declared domicile of the creator of a spendthrift trust or domestic asset protection trust affecting personal property is in the State of Arkansas; or (4) At least one (1) trustee qualified under subsection (b) of this section has powers that include maintaining records and preparing income tax returns for the trust and all or part of the administration of the trust is performed in the State of Arkansas. (b) If a settlor is a beneficiary of a trust of the settlor's own creation, at least one (1) trustee of the domestic asset protection trust must be: (1) A natural person who resides and has his or her domicile in the State of Arkansas; (2) A trust company that: (A) Is organized under: (i) Federal law; (ii) The laws of the State of Arkansas; or (iii) The laws of another state; and (B) Maintains an office in the State of Arkansas for the transaction of business; or (3) A bank that: (A) Is organized under: (i) Federal law; (ii) The laws of the State of Arkansas; or (iii) The laws of another state; (B) Maintains an office in the State of Arkansas for the transaction of business; and (C) Possesses and exercises trust powers.

Legislative History

Added by Act 2023, No. 291,§ 1, eff. 8/1/2023.