Setting up a living trust in Arkansas involves two connected jobs: creating a trust that satisfies Arkansas law and connecting the right property to that trust. Arkansas recognizes a lifetime trust created by transferring property to a trustee or by an owner declaring that the owner holds identifiable property as trustee. Ark. Code Ann. § 28-73-401
For broader Arkansas rules on trust administration, notices, and trustee duties, see our Arkansas trust law guide. This article stays focused on the formation and funding workflow for a revocable living trust.
The statute links below point to enacted text hosted by the Arkansas General Assembly. Act 1031 of 2005 enacted the Arkansas Trust Code, and Act 804 of 2021 supplies the current text of the sections it amended. The General Assembly's code-section amendment records were checked through the 2026 First Extraordinary Session on August 21, 2026; no later amendment to a section cited here was found.
What Arkansas law requires to create a trust
For an ordinary family trust, Arkansas's creation rule requires a settlor with capacity who intends to create a trust, a definite beneficiary, and a trustee with duties to perform. The same person cannot be both the sole trustee and sole beneficiary. The statute separately recognizes charitable trusts, animal-care trusts, and certain noncharitable-purpose trusts. Ark. Code Ann. § 28-73-402
The trust's purposes must be lawful, consistent with public policy, possible to achieve, and for the benefit of its beneficiaries. Ark. Code Ann. § 28-73-404 For a revocable trust, the capacity needed to create the trust or add property is the same capacity needed to make a will. Ark. Code Ann. § 28-73-601
Those are legal requirements, not a complete estate plan. The practical work is deciding what the trust should accomplish, documenting those choices, completing the asset transfers, and preserving evidence of what was done.
How to set up a living trust in Arkansas, step by step
1. Define the purpose and inventory the property
Start with the result you want: management during incapacity, an orderly transition to a successor trustee, instructions for beneficiaries, or a combination of those goals. Then build a current inventory of real estate, financial accounts, business interests, valuable personal property, and beneficiary-designated assets.
The inventory makes the drafting conversation concrete. It shows which property you want the trustee to manage, which institutions or public offices may be involved, and which assets need separate professional advice before any title or designation changes.
2. Choose the initial and successor trustees
Decide who will manage the trust now and who should step in when the initial trustee can no longer serve. Arkansas's creation methods permit an owner to declare that the owner holds identifiable property as trustee, so serving as the initial trustee can fit within the statutory structure. Ark. Code Ann. § 28-73-401
If you plan to be both trustee and a beneficiary, make sure the beneficial interests do not end with you. Arkansas does not allow one person to be both the sole trustee and sole beneficiary. Ark. Code Ann. § 28-73-402(a)(5) Name a successor who understands the role, can keep records, and is willing to follow the trust's instructions.
3. Identify the beneficiaries and distribution instructions
List who should benefit, when each person may receive property, and what should happen if a beneficiary dies before a distribution. Arkansas requires a definite beneficiary for an ordinary family trust, although a beneficiary may be ascertainable now or in the future. Ark. Code Ann. § 28-73-402(a)(3), (b)
This is where a form can become a poor substitute for planning. Minor beneficiaries, blended families, a beneficiary with a disability, unequal distributions, and a closely held business can require terms tailored to the people and property involved.
4. Put the terms in a written trust instrument
Arkansas's Trust Code says a trust generally need not be evidenced by a trust instrument unless another statute requires one, but an oral trust and its terms can be established only by clear and convincing evidence. Ark. Code Ann. § 28-73-407 A planned living trust should use a signed written instrument rather than depend on later proof of an oral arrangement.
The document should identify the settlor, initial and successor trustees, beneficiaries, trust property, distribution terms, trustee authority, incapacity process, and amendment or revocation method. It should also say expressly that the trust is revocable. For an instrument executed on or after September 1, 2005, Arkansas permits the settlor to revoke or amend unless the trust's terms expressly make it irrevocable. Ark. Code Ann. § 28-73-602(a)
Follow the execution instructions supplied with the document. The Trust Code's oral-trust rule does not displace a writing, acknowledgment, recording, or other formality that another law may impose on a particular document or asset transfer. Ark. Code Ann. § 28-73-407
5. Fund the trust asset by asset
Return to the inventory after the document is signed. Arkansas's creation statute distinguishes a transfer of property to a trustee from an owner's declaration that the owner holds identifiable property as trustee. Ark. Code Ann. § 28-73-401 The right paperwork depends on the asset, its current ownership, and the institution or public office involved.
Use The Trust Funding Checklist to work through the inventory systematically. For each asset:
- Record its current title or beneficiary designation.
- Confirm with your attorney, tax professional, institution, or title professional whether and how it should connect to the trust.
- Complete the required transfer, designation, or recording process.
- Keep the accepted deed, account confirmation, assignment, or other proof with the trust records.
- Mark the item complete only after verifying the change with the recipient or public record.
Do not move every asset automatically. Ownership restrictions, loan terms, tax treatment, and beneficiary-designation rules can make the correct method asset-specific.
6. Prepare a certification of trust if useful
Arkansas lets a trustee give a nonbeneficiary a certification of trust instead of the complete trust instrument. The certification can state the trust's existence and date, identify the settlor and acting trustee, describe relevant trustee powers, address revocability and cotrustee authority, and explain how title should be taken. Any trustee may sign or otherwise authenticate it, and it must state that the trust has not changed in a way that makes its representations incorrect. Ark. Code Ann. § 28-73-1013(a)–(c)
Ask the drafting attorney whether to prepare one with the trust package. It can provide transaction-specific proof of trustee authority, and the certification need not contain the trust's dispositive terms. Ark. Code Ann. § 28-73-1013(d)
7. Store the records and plan for updates
Keep the signed trust instrument, certification, property schedule, completed transfer records, and later amendments together. Maintain a separate working inventory so you can see which assets are connected to the trust and which still need attention.
For a new revocable trust, Arkansas law permits revocation or amendment under the trust's stated method and supplies alternatives when that method is not expressly exclusive. Ark. Code Ann. § 28-73-602(a), (c) Follow the document's procedure, keep each signed change with the original, and review the plan after a move, marriage, divorce, death, major purchase or sale, or substantial change in beneficiaries.
FAQ
Can I be the trustee of my own Arkansas living trust?
Arkansas permits creation when an owner declares that the owner holds identifiable property as trustee. Ark. Code Ann. § 28-73-401(2) The same person cannot, however, be both the sole trustee and sole beneficiary. Ark. Code Ann. § 28-73-402(a)(5)
Does an Arkansas living trust have to be in writing?
The Arkansas Trust Code generally permits an oral trust unless another statute requires a trust instrument, but creation and terms of an oral trust require clear and convincing evidence. A signed written instrument is the practical choice for a planned living trust and does not eliminate separate formalities for particular asset transfers. Ark. Code Ann. § 28-73-407
Is a new Arkansas living trust revocable by default?
For a trust instrument executed on or after September 1, 2005, the settlor may revoke or amend the trust unless its terms expressly provide that it is irrevocable. A carefully drafted revocable living trust should still state its status and amendment method directly. Ark. Code Ann. § 28-73-602(a), (c)
Does signing the document finish the funding work?
Not by itself for every intended asset. Arkansas recognizes creation through a transfer to a trustee or a declaration that an owner holds identifiable property as trustee, and each intended asset still needs the appropriate ownership or designation review. Ark. Code Ann. § 28-73-401
Do I need a lawyer to set up an Arkansas living trust?
Arkansas's creation statute addresses capacity, intent, beneficiaries, and trustee duties; it does not choose the terms that fit a particular family or asset. Ark. Code Ann. § 28-73-402 Attorney review is especially important for real estate, business interests, blended families, disability planning, questions about capacity, or a plan that crosses state lines.
When to talk to an attorney
Talk with a qualified Arkansas estate-planning attorney before signing or transferring property when the plan involves real estate, a business, a beneficiary with a disability, a blended family, creditor concerns, unusual distribution terms, or uncertainty about capacity. An attorney can coordinate the trust instrument with the asset-transfer documents and the rest of the estate plan.
This guide is for educational purposes only and does not constitute legal or tax advice. Consult qualified legal and tax professionals for decisions about your trust.