reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 70 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 28-70-101 — 28-70-606) › Subchapter 6 - MISCELLANEOUS PROVISIONS (§§ 28-70-601 — 28-70-606) › Section 28-70-603 - [Repealed]

Repealed by Act 2021, No. 1088,§ 1, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 70 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 28-70-101 — 28-70-606) › Subchapter 6 - MISCELLANEOUS PROVISIONS (§§ 28-70-601 — 28-70-606) › Section 28-70-604 - [Repealed]

Repealed by Act 2021, No. 1088,§ 1, eff. 1/1/2022.
Acts 1999, No. 647, § 604.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 70 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 28-70-101 — 28-70-606) › Subchapter 6 - MISCELLANEOUS PROVISIONS (§§ 28-70-601 — 28-70-606) › Section 28-70-605 - [Repealed]

Repealed by Act 2021, No. 1088,§ 1, eff. 1/1/2022.
Acts 1999, No. 647, § 605.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 70 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 28-70-101 — 28-70-606) › Subchapter 6 - MISCELLANEOUS PROVISIONS (§§ 28-70-601 — 28-70-606) › Section 28-70-606 - [Repealed]

Repealed by Act 2021, No. 1088,§ 1, eff. 1/1/2022.
Acts 2011, No. 132, § 3.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 71 - INVESTMENT OF TRUST FUNDS (§§ 28-71-101 — 28-71-107) › Section 28-71-101 - Fiduciaries' powers cumulative - Uniform Veterans' Guardianship Act not affected

(a)
The powers granted by this chapter to the fiduciaries named in this chapter shall be in addition to the powers existing by virtue of other acts heretofore enacted authorizing investments by fiduciaries.
(b)
This chapter shall not apply in any situation governed by the Uniform Veterans' Guardianship Act, §
28-66-101
et seq.
Acts 1955, No. 121, § 6; A.S.A. 1947, § 58-306.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 71 - INVESTMENT OF TRUST FUNDS (§§ 28-71-101 — 28-71-107) › Section 28-71-102 - Power of court not limited by chapter

Nothing contained in this chapter shall be construed to limit the power of a court of competent jurisdiction to permit a fiduciary to take any action, or to restrain a fiduciary from taking any action, notwithstanding the permissions or restrictions contained in any written instrument under which the fiduciary is acting.
Acts 1955, No. 121, § 4; A.S.A. 1947, § 58-304.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 71 - INVESTMENT OF TRUST FUNDS (§§ 28-71-101 — 28-71-107) › Section 28-71-103 - Fiduciaries subject to chapter

Fiduciaries acting under authority granted before or after June 9, 1955, shall be subject to the provisions of this chapter.
Acts 1955, No. 121, § 5; A.S.A. 1947, § 58-305.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 71 - INVESTMENT OF TRUST FUNDS (§§ 28-71-101 — 28-71-107) › Section 28-71-104 - Additional authority to invest funds

(a)
Unless prohibited by will, deed, trust, court order, or other instrument establishing the fiduciary relationship or unless another mode of investment is prescribed by any such instrument, trustees, guardians, and personal representatives, in addition to methods of investment now authorized by law, may invest all funds held in trust or for investment as provided in this chapter.
(b)
In addition to other investments authorized by law for the investment of funds held by a fiduciary, or by the instrument governing the fiduciary relationship, and notwithstanding any other provision of law, a bank or trust company acting as a fiduciary, agent, or otherwise may, in the exercise of its investment discretion or at the direction of another person authorized to direct investment of funds held by a bank or trust company as fiduciary, invest and reinvest in the securities of an open-end or closed-end management investment company or investment trust registered under the Investment Company Act of 1940,
15 U.S.C. § 80a-1
et seq., as amended, so long as the portfolio of the investment company or investment trust consists substantially of investments not prohibited by the governing instrument.
(c)
The fact that such a bank or trust company or an affiliate of the bank or trust company provides services to the investment company or investment trust such as that of an investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise and is receiving reasonable compensation for those services shall not preclude the bank or trust company from investing or reinvesting in the securities of the open-end or closed-end management investment trust registered under the Investment Company Act of 1940,
15 U.S.C. § 80a-1
et seq., as amended.
Acts 1955, No. 121, § 1; A.S.A. 1947, § 58-301; Acts 1993, No. 482, § 1.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 71 - INVESTMENT OF TRUST FUNDS (§§ 28-71-101 — 28-71-107) › Section 28-71-105 - Standard of judgment and care - Prudent investor rule

In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property held in a fiduciary capacity, other than trusts subject to the prudent investor rule as set forth in the Arkansas Trust Code, §
28-73-101
et seq., the fiduciary shall exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
Acts 1955, No. 121, § 2; A.S.A. 1947, § 58-302; Acts 1997, No. 940, § 114; 2005, No. 1031, § 3.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 71 - INVESTMENT OF TRUST FUNDS (§§ 28-71-101 — 28-71-107) › Section 28-71-106 - Investments authorized

(a)
Within the limitations of the standard set forth in §
28-71-105
, a fiduciary is authorized to acquire and retain every kind of real, personal, or mixed property and every kind of investment, specifically including, but not by way of limitation, bonds, debentures, and other corporate obligations, preferred or common stocks, shares or interests in common trust funds, and securities of any open-end or closed-end management-type investment company or investment trust registered under the Federal Investment Company Act of 1940, as amended, which persons of prudence, discretion, and intelligence acquire or retain for their own account.
(b)
(1)
Whenever a fiduciary is authorized or required by the instrument, judgment, decree, or order establishing the fiduciary relationship to invest funds in specifically described securities, the fiduciary may, unless expressly prohibited by such an instrument, judgment, decree, or order, invest such funds in any investment company or investment trust described in subsection (a) of this section, the portfolio of which is limited to such specifically described securities and to repurchase agreements fully collateralized by such specifically described securities, provided that the investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian.
(2)
Notwithstanding any other provision of state law, this subsection shall apply to all funds deposited with or controlled by any bank trustee acting in a fiduciary capacity in connection with the issuance, sale or redemption of bonds, notes, and other certificates of indebtedness.
(c)
Unless expressly prohibited by the instrument, judgment, decree, or order establishing the fiduciary relationship, a fiduciary may invest funds in certificates of deposit and savings accounts of any state bank or national bank whose deposits are insured by the Federal Deposit Insurance Corporation and whose main office is in this state, including itself, if the fiduciary is a bank.
(d)
Whenever the express terms or limitations set forth in any instrument use the terms "legal investment" or "authorized investment" or words of similar import, the words shall be taken to mean any investment authorized or permitted by this section.
(e)
Consistent with the trustee's investment powers, a trustee may make temporary investments of funds in short-term interest-bearing obligations or deposits, or other short-term liquid investments. Trustees are authorized to charge reasonable fees for this service in addition to other compensation to which the trustee is entitled.
Acts 1955, No. 121, §§ 2, 3; 1977, No. 949, § 1; A.S.A. 1947, §§ 58-302, 58-303, 58-307; Acts 1989, No. 658, § 3; 1991, No. 668, § 2; 1993, No. 1025, § 1.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 71 - INVESTMENT OF TRUST FUNDS (§§ 28-71-101 — 28-71-107) › Section 28-71-107 - Limited investment in private venture capital projects authorized

(a)
Unless prohibited by federal law or regulations promulgated thereunder, but notwithstanding any law or rule of this state to the contrary, fiduciaries and financial institutions may invest up to no more than two and one-half percent (2½%) of their funds eligible for investment, but not more than ten percent (10%) of their capital, including common capital stock, certified surplus, capital notes, and undivided profits, in Arkansas private venture capital projects without being in contravention of any prudent investor rule. This limitation is applicable only at the time of investment, and it shall not constitute a contravention of the prudent investor rule if investments in Arkansas private venture capital projects are in excess of this limitation by virtue of a reduction in the amount of funds eligible for investment.
(b)
The primary state regulators of the fiduciaries making such investments under this section shall promulgate rules for the implementation of this section.
(c)
(1)
The prudent investor rule is embodied in several laws of this state pertaining to the investment of funds by financial institutions and fiduciaries, and the General Assembly has determined that the people of this state would benefit by the limited relaxation of the prudent investor rule to the extent that fiduciaries and financial institutions should be allowed to invest a small portion of their assets in private venture capital projects within this state.
(2)
It is the intent of this section to allow fiduciaries and financial institutions to invest up to two and one-half percent (2½%) of their funds eligible for investment, but not more than ten percent (10%) of their capital, including common capital stock, certified surplus, capital notes, and undivided profits, in Arkansas private venture capital projects without incurring liability for violation of the prudent investor rule.
Amended by Act 2019, No. 315,§ 3203, eff. 7/24/2019.
Acts 1985, No. 905, §§ 1-3; A.S.A. 1947, §§ 58-308 -- 58-310.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 1 - MISSING PERSONS (§§ 28-72-101 — 28-72-104) › Section 28-72-101 - Jurisdiction of circuit courts

The circuit courts of this state shall have jurisdiction of the estates of persons imprisoned in a foreign country and of the estates of missing persons.
Acts 1943, No. 71, § 1; A.S.A. 1947, § 58-201.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 1 - MISSING PERSONS (§§ 28-72-101 — 28-72-104) › Section 28-72-102 - Appointment of trustee

(a)
It shall be the duty of the circuit courts to appoint some suitable person trustee of the estate of any person imprisoned in some foreign country or who may be missing and whose whereabouts are unknown, and who has a family or dependents residing in this state.
(b)
The trustee shall be appointed upon the petition of any person dependent upon the services of the missing person, or person imprisoned in a foreign country, for his or her support.
Acts 1943, No. 71, §§ 1, 2; A.S.A. 1947, §§ 58-201, 58-202.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 1 - MISSING PERSONS (§§ 28-72-101 — 28-72-104) › Section 28-72-103 - Powers and duties of trustee

(a)
Any trustee so appointed by the circuit court of this state shall have authority to collect and receive and give a receipt for all sums of money or property of any kind or character that may be due any missing person or person imprisoned in any foreign country.
(b)
Upon receipt of property of any kind or anything of value, the trustee shall immediately report to the court the amount of money or other property received by him or her as trustee.
(c)
The court shall have authority to authorize the trustee to use the funds or property in the amount and in the manner provided by an order of the court for the support and maintenance of the family or dependents of the missing person or person imprisoned in any foreign country.
Acts 1943, No. 71, § 2; A.S.A. 1947, § 58-202.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 1 - MISSING PERSONS (§§ 28-72-101 — 28-72-104) › Section 28-72-104 - Bond of trustee

(a)
The trustee shall give bond in double the amount of property or money received and, upon the appearance of the missing person or person imprisoned in any foreign country, shall be required to account to and turn over to the person the balance of all funds or property not legally expended by the trustee under the order of the circuit court.
(b)
The bondsmen shall be liable for any sums or property unaccounted for by the trustee, in the same manner that bondsmen of administrators in this state are liable on their bonds.
Acts 1943, No. 71, § 3; A.S.A. 1947, § 58-203.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 2 - PUBLIC TRUSTS (§§ 28-72-201 — 28-72-207) › Section 28-72-201 - Public trusts authorized

Express trusts may be created in real or personal property, or either or both, or any estate in either or both, with the state, or any governmental or municipal subdivision thereof, or any agency or department of either, or more than one (1) of any of the foregoing, as the beneficiary thereof, for the purpose of aiding or furthering or the providing of funds for the aiding or furthering of any one (1) or more proper functions of the beneficiary then authorized or which might lawfully be authorized. However, no funds of any beneficiary derived from other than trust sources shall be charged with or expended in the execution of the trust except by express lawful action of the beneficiary.
Acts 1961, No. 459, § 1; A.S.A. 1947, § 58-401.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 2 - PUBLIC TRUSTS (§§ 28-72-201 — 28-72-207) › Section 28-72-202 - Acceptance of trust

(a)
No public trust shall become effective until the beneficial interest therein shall have been accepted by a beneficiary thereof, and the trust shall be effective only as to beneficiaries who have accepted beneficial interest thereunder.
(b)
If the state or any of its agencies or departments shall be named as the beneficiary, the beneficial interests shall be accepted by the Governor, and if any governmental or municipal subdivision of the state is named as the beneficiary, the beneficial interests shall be accepted by the governing body thereof. The power and authority to accept beneficial interests under such trusts is conferred upon the Governor and such governing bodies.
(c)
The acceptance of beneficial interest of any trust shall be endorsed upon the trust instrument by the accepting governmental authority.
(d)
Upon acceptance, the trust instrument shall be a binding contract between the state and the designated beneficiary and the trustee of the trust for the acceptance of the beneficial interest therein and for the application of the trust property and its proceeds, and the operation of the trust, in accordance with the purposes set forth in the trust instrument. The trustee of the trust thereupon shall be the regularly constituted authority of the beneficiary for the performance of the functions for which the trust shall have been created.
Acts 1961, No. 459, §§ 2, 4; A.S.A. 1947, §§ 58-402, 58-404.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 2 - PUBLIC TRUSTS (§§ 28-72-201 — 28-72-207) › Section 28-72-203 - Trustee - Appointment and powers

The instrument creating the trust may provide for the appointment, succession, powers, duties, term, and compensation of the trustee and may be for the term of the duration of any beneficiary or for a shorter term. In case of the failure of the trust instrument to make provision for any of the foregoing, or for anything necessary to the execution of the trust, the general laws of the state shall control with respect to the omission.
Acts 1961, No. 459, § 5; A.S.A. 1947, § 58-405.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 2 - PUBLIC TRUSTS (§§ 28-72-201 — 28-72-207) › Section 28-72-204 - Lease of property to trustee

The officers or any other governmental or municipal authorities having the custody, management, or control of any property of any beneficiary of such a trust, at the time of, or after, creation of the trust, may lease any such property as shall be needful in the execution of the trust to the trustee or trustees to implement the performance of the trust purposes for the benefit of the beneficiary.
Acts 1961, No. 459, § 3; A.S.A. 1947, § 58-403.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 2 - PUBLIC TRUSTS (§§ 28-72-201 — 28-72-207) › Section 28-72-205 - Amendment or termination of trust instrument

The instrument creating any public trust may be amended, or the trust may be terminated, by agreement of the trustee, or, if there is more than one (1) trustee, then of all of the trustees, and of the authority having the power of acceptance of beneficial interest thereunder. However, no such amendment or termination shall be effective while there exist any contractual obligations chargeable against the trust estate or its revenues unless the holder of the contractual obligations also agrees thereto.
Acts 1961, No. 459, § 7; A.S.A. 1947, § 58-407.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 2 - PUBLIC TRUSTS (§§ 28-72-201 — 28-72-207) › Section 28-72-206 - Liability of trustee and the trust estate

No trustee of such a trust, or any beneficiary thereof, shall be charged with any liability whatsoever by reason of any act or omission committed or suffered in the performance of the purposes of the trust. However, liability for any act or omission so committed or suffered shall extend to the whole of the trust estate, or so much thereof as may be necessary to discharge the liability, and not otherwise.
Acts 1961, No. 459, § 6; A.S.A. 1947, § 58-406.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 2 - PUBLIC TRUSTS (§§ 28-72-201 — 28-72-207) › Section 28-72-207 - Trust estate exempt from taxation

For all purposes of taxation under the authority of the state or any of its governmental or taxing subdivisions, the trust estate and its revenues shall have the same immunities as other property and revenues of the beneficiary or beneficiaries not so in trust.
Acts 1961, No. 459, § 8; A.S.A. 1947, § 58-408.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 3 - CHARITABLE TRUSTS (§§ 28-72-301 — 28-72-302) › Section 28-72-301 - Definition

As used in this subchapter, unless the context otherwise requires, all references to "the code" are to the Internal Revenue Code of 1954, and all references to specific sections of the code include future amendments to the sections and corresponding provisions of any future federal tax laws.
Acts 1971, No. 728, § 3; A.S.A. 1947, § 58-119.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 3 - CHARITABLE TRUSTS (§§ 28-72-301 — 28-72-302) › Section 28-72-302 - Amendment of trust instrument by operation of law - Exclusions

(a)
Notwithstanding any provision in the laws of this state or in the governing instrument to the contrary, except as provided in subsections (c) and (d) of this section, the governing instrument of each trust which is a private foundation as defined in section 509 of the Internal Revenue Code of 1954, including each nonexempt charitable trust as defined in section 4947(a)(1) of the code which is treated as a private foundation, and the governing instrument of each nonexempt split-interest trust as defined in section 4947(a)(2) of the code, but only to the extent that section 508(e) of the code is applicable to a nonexempt split-interest trust under section 4947(a)(2) of the code, shall be deemed to contain the following provisions: "The trust shall make distributions at such time and in such manner as not to become subject to the tax on undistributed income imposed by section 4942 of the Internal Revenue Code of 1954; the trust shall not engage in any act of self-dealing (as defined in section 4941(d) of the code) which would subject it to tax under section 4941 of the code; the trust shall not retain any excess business holdings (as defined in section 4943(c) of the code) which would subject it to tax under section 4943 of the code; the trust shall not make any investments in such manner as to incur tax liability under section 4944 of the code; and the trust shall not make any taxable expenditures (as defined in section 4945(d) of the code) which would subject it to tax under section 4945 of the code."
(b)
With respect to any such trust created prior to January 1, 1970, subsection (a) of this section shall apply only for its taxable years beginning on or after January 1, 1972.
(c)
The provisions of subsection (a) of this section shall not apply to any trust to the extent that a court of competent jurisdiction shall determine that the application would be contrary to the terms of the instrument governing the trust and that the terms may not properly be changed to conform to subsection (a) of this section.
(d)
The trustee of any trust described in subsection (a) of this section, with the consent of the trustor if he or she is then living and competent to give consent, without judicial proceedings, may amend the trust to expressly exclude the application of this section by executing a written amendment to the trust and filing a duplicate original of the amendment with the Attorney General, and upon filing of the amendment, subsection (a) of this section shall not apply to the trust.
(e)
Nothing contained herein shall impair the rights and powers of the courts, or any officer, agency, or department of this state, with respect to the trust.
Acts 1971, No. 728, § 2; A.S.A. 1947, § 58-118.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-401 - Definitions

As used in this subchapter:
(1)
"Adult" means an individual who is at least eighteen (18) years of age.
(2)
"Beneficiary" means an individual for whom property has been transferred to or held under a declaration of trust by a custodial trustee for the individual's use and benefit under this subchapter.
(3)
"Conservator" means a person appointed or qualified by a court to manage the estate of an individual or a person legally authorized to perform substantially the same functions.
(4)
"Court" means the circuit court of the appropriate county of this state.
(5)
"Custodial trust property" means an interest in property transferred to or held under a declaration of trust by a custodial trustee under this subchapter and the income from the proceeds of that interest.
(6)
"Custodial trustee" means a person designated as trustee of a custodial trust under this subchapter or a substitute or successor to the person designated.
(7)
"Guardian" means a person appointed or qualified by a court as a guardian of an individual, including a limited guardian, but not a person who is only a guardian ad litem.
(8)
"Incapacitated" means lacking the ability to manage property and business affairs effectively by reason of mental illness, mental deficiency, physical illness or disability, chronic use of drugs, chronic intoxication, confinement, detention by a foreign power, disappearance, minority, or other disabling cause.
(9)
"Legal representative" means a personal representative or conservator.
(10)
"Member of the beneficiary's family" means a beneficiary's spouse, descendant, stepchild, parent, stepparent, grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by adoption.
(11)
"Person" means an individual, corporation, business trust, estate, trust, partnership, joint venture, association, or any other legal or commercial entity.
(12)
"Personal representative" means an executor, administrator, or special administrator of a decedent's estate, a person legally authorized to perform substantially the same functions, or a successor to any of them.
(13)
"State" means a state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico.
(14)
"Transferor" means a person who creates a custodial trust by transfer or declaration.
(15)
"Trust company" means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers.
Acts 1991, No. 273, § 1.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-402 - Custodial trust - General

(a)
A person may create a custodial trust of property by a written transfer of the property to another person, evidenced by registration or by other instrument of transfer, executed in any lawful manner, naming as beneficiary, an individual who may be the transferor, in which the transferee is designated, in substance, as custodial trustee under this subchapter.
(b)
A person may create a custodial trust of property by a written declaration, evidenced by registration of the property or by other instrument of declaration executed in any lawful manner, describing the property and naming as beneficiary an individual other than the declarant, in which the declarant as titleholder is designated, in substance, as custodial trustee under this subchapter. A registration or other declaration of trust for the sole benefit of the declarant is not a custodial trust under this subchapter.
(c)
Title to custodial trust property is in the custodial trustee and the beneficial interest is in the beneficiary.
(d)
Except as provided in subsection (e), a transferor may not terminate a custodial trust.
(e)
The beneficiary, if not incapacitated, or the conservator of an incapacitated beneficiary, may terminate a custodial trust by delivering to the custodial trustee a writing signed by the beneficiary or conservator declaring the termination. If not previously terminated, the custodial trust terminates on the death of the beneficiary.
(f)
Any person may augment existing custodial trust property by the addition of other property pursuant to this subchapter.
(g)
The transferor may designate, or authorize the designation of, a successor custodial trustee in the trust instrument.
(h)
This subchapter does not displace or restrict other means of creating trusts. A trust whose terms do not conform to this subchapter may be enforceable according to its terms under other law.
Acts 1991, No. 273, § 2.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-403 - Custodial trustee for future payment or transfer

(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 of beneficiary) under the Arkansas Custodial Trust Act, §
28-72-401
et seq."
(b)
Persons may be designated as substitute or successor custodial trustees to whom the property must be paid or transferred in the order named if the first designated custodial trustee is unable or unwilling to serve.
(c)
A designation under this section may be made in a will, a trust, a deed, a multiple-party account, an insurance policy, an instrument exercising a power of appointment, or a writing designating a beneficiary of contractual rights. Otherwise, to be effective, the designation must be registered with or delivered to the fiduciary, payor, issuer, or obligor of the future right.
Acts 1991, No. 273, § 3.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-405 - Transfer to custodial trustee by fiduciary or obligor - Facility of payment

(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 to an adult member of the beneficiary's family or to a trust company as custodial trustee for the use and benefit of the incapacitated individual. If the value of the property or the debt exceeds twenty thousand dollars ($20,000), the transfer is not effective unless authorized by the court.
(b)
A written acknowledgment of delivery, signed by a custodial trustee, is a sufficient receipt and discharge for property transferred to the custodial trustee pursuant to this section.
Acts 1991, No. 273, § 5.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-406 - Multiple beneficiaries - Separate custodial trusts - Survivorship

(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 presumed, a right of survivorship does not exist unless the instrument creating the custodial trust specifically provides for survivorship.
(b)
Custodial trust property held under this subchapter by the same custodial trustee for the use and benefit of the same beneficiary may be administered as a single custodial trust.
(c)
A custodial trustee of custodial trust property held for more than one (1) beneficiary shall separately account to each beneficiary pursuant to §§
28-72-407
and
28-72-415
for the administration of the custodial trust.
Acts 1991, No. 273, § 6.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-407 - General duties of custodial trustee

(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 retention of the custodial trust property. In the absence of effective contrary direction by the beneficiary while not incapacitated, the custodial trustee shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other law restricting investments by fiduciaries. However, a custodial trustee, in the custodial trustee's discretion, may retain any custodial trust property received from the transferor. If a custodial trustee has a special skill or expertise or is named custodial trustee on the basis of representation of a special skill or expertise, the custodial trustee shall use that skill or expertise.
(c)
Subject to subsection (b), a custodial trustee shall take control of and collect, hold, manage, invest, and reinvest custodial trust property.
(d)
A custodial trustee at all times shall keep custodial trust property of which the custodial trustee has control, separate from all other property in a manner sufficient to identify it clearly as custodial trust property of the beneficiary. Custodial trust property, the title to which is subject to recordation, is so identified if an appropriate instrument so identifying the property is recorded, and custodial trust property subject to registration is so identified if it is registered, or held in an account in the name of the custodial trustee, designated in substance: "as custodial trustee for ............... (name of beneficiary) under the Arkansas Custodial Trust Act, §
28-72-401
et seq."
(e)
A custodial trustee shall keep records of all transactions with respect to custodial trust property, including information necessary for the preparation of tax returns, and shall make the records and information available at reasonable times to the beneficiary or legal representative of the beneficiary.
(f)
The exercise of a durable power of attorney for an incapacitated beneficiary is not effective to terminate or direct the administration or distribution of a custodial trust.
Acts 1991, No. 273, § 7.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-408 - General powers of custodial trustee

(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)
This section does not relieve a custodial trustee from liability for a violation of §
28-72-407
.
Acts 1991, No. 273, § 8.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-409 - Use of custodial trust property

(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 trustee shall expend so much or all of the custodial trust property as the custodial trustee considers advisable for the use and benefit of the beneficiary and individuals who were supported by the beneficiary when the beneficiary became incapacitated, or who are legally entitled to support by the beneficiary. Expenditures may be made in the manner, when, and to the extent that the custodial trustee determines suitable and proper, without court order and without regard to other support, income, or property of the beneficiary.
(c)
A custodial trustee may establish checking, savings, or other similar accounts of reasonable amounts under which either the custodial trustee or the beneficiary may withdraw funds from, or draw checks against, the accounts. Funds withdrawn from, or checks written against, the account by the beneficiary are distributions of custodial trust property by the custodial trustee to the beneficiary.
Acts 1991, No. 273, § 9.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-410 - Determination of incapacity - Effect

(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 determined that the beneficiary is incapacitated.
(b)
A custodial trustee may determine that the beneficiary is incapacitated in reliance upon (i) previous direction or authority given by the beneficiary while not incapacitated, including direction or authority pursuant to a durable power of attorney, (ii) the certificate of the beneficiary's physician, or (iii) other persuasive evidence.
(c)
If a custodial trustee for an incapacitated beneficiary reasonably concludes that the beneficiary's incapacity has ceased, or that circumstances concerning the beneficiary's ability to manage property and business affairs have changed since the creation of a custodial trust directing administration as for an incapacitated beneficiary, the custodial trustee may administer the trust as for a beneficiary who is not incapacitated.
(d)
On petition of the beneficiary, the custodial trustee, or other person interested in the custodial trust property or the welfare of the beneficiary, the court shall determine whether the beneficiary is incapacitated.
(e)
Absent determination of incapacity of the beneficiary under subsection (b) or (d), a custodial trustee who has reason to believe that the beneficiary is incapacitated shall administer the custodial trust in accordance with the provisions of this subchapter applicable to an incapacitated beneficiary.
(f)
Incapacity of a beneficiary does not terminate:
(i)
The custodial trust;
(ii)
Any designation of a successor custodial trustee;
(iii)
Rights or powers of the custodial trustee; or
(iv)
Any immunities of third persons acting on instructions of the custodial trustee.
Acts 1991, No. 273, § 10.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-411 - Exemption of third person from liability

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 not responsible for determining:
(1)
the validity of the purported custodial trustee's designation;
(2)
the propriety of, or the authority under this subchapter for, any action of the purported custodial trustee;
(3)
the validity or propriety of an instrument executed or instruction given pursuant to this subchapter either by the person purporting to make a transfer or declaration or by the purported custodial trustee; or
(4)
the propriety of the application of property vested in the purported custodial trustee.
Acts 1991, No. 273, § 11.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-412 - Liability to third person

(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 person against the custodial trust property by proceeding against the custodial trustee in a fiduciary capacity, whether or not the custodial trustee or the beneficiary is personally liable.
(b)
A custodial trustee is not personally liable to a third person:
(1)
on a contract properly entered into in a fiduciary capacity unless the custodial trustee fails to reveal that capacity or to identify the custodial trust in the contract; or
(2)
for an obligation arising from control of custodial trust property or for a tort committed in the course of the administration of the custodial trust unless the custodial trustee is personally at fault.
(c)
A beneficiary is not personally liable to a third person for an obligation arising from beneficial ownership of custodial trust property or for a tort committed in the course of administration of the custodial trust unless the beneficiary is personally in possession of the custodial trust property giving rise to the liability or is personally at fault.
(d)
Subsections (b) and (c) do not preclude actions or proceedings to establish liability of the custodial trustee or beneficiary to the extent the person is protected as the insured by liability insurance.
Acts 1991, No. 273, § 12.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-414 - Expenses, compensation, and bond of custodial trustee

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 fiduciary services;
(2)
has a noncumulative election, to be made no later than six (6) months after the end of each calendar year, to charge a reasonable compensation for fiduciary services performed during that year; and
(3)
need not furnish a bond or other security for the faithful performance of fiduciary duties.
Acts 1991, No. 273, § 14.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 72 - PARTICULAR TRUSTS (§§ 28-72-101 — 28-72-714) › Subchapter 4 - ARKANSAS CUSTODIAL TRUST ACT (§§ 28-72-401 — 28-72-422) › Section 28-72-415 - Reporting and accounting by custodial trustee - Determination of liability of custodial trustee

(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) upon request at reasonable times by the beneficiary or the beneficiary's legal representative, (iii) upon resignation or removal of the custodial trustee, and (iv) upon termination of the custodial trust. The statements must be provided to the beneficiary or to the beneficiary's legal representative, if any. Upon termination of the beneficiary's interest, the custodial trustee shall furnish a current statement to the person to whom the custodial trust property is to be delivered.
(b)
A beneficiary, the beneficiary's legal representative, an adult member of the beneficiary's family, a person interested in the custodial trust property, or a person interested in the welfare of the beneficiary may petition the court for an accounting by the custodial trustee or the custodial trustee's legal representative.
(c)
A successor custodial trustee may petition the court for an accounting by a predecessor custodial trustee.
(d)
In an action or proceeding under this subchapter or in any other proceeding, the court may require or permit the custodial trustee or the custodial trustee's legal representative to account. The custodial trustee or the custodial trustee's legal representative may petition the court for approval of final accounts.
(e)
If a custodial trustee is removed, the court shall require an accounting and order delivery of the custodial trust property and records to the successor custodial trustee and the execution of all instruments required for transfer of the custodial trust property.
(f)
On petition of the custodial trustee or any person who could petition for an accounting, the court, after notice to interested persons, may issue instructions to the custodial trustee or review the propriety of the acts of a custodial trustee or the reasonableness of compensation determined by the custodial trustee for the services of the custodial trustee or others.
Acts 1991, No. 273, § 15.