Detailed Answer
When you create a revocable living trust in Arkansas, you must fund it properly to ensure the trust holds your real property at death. Funding means transferring title from yourself (grantor) to yourself as trustee while you live. Completing each step avoids probate and secures your privacy.
1. Confirm Ownership and Title Status
Access your current deed at the county recorder’s office to verify your name, legal description, and any liens. Review your title report to confirm clear ownership. This step helps prevent challenges later.
2. Draft a Deed to Transfer Property
Use a warranty deed or quitclaim deed to transfer the property from you (as an individual) to you (as trustee of your trust). Include:
- Grantor and grantee names exactly as they appear in your trust document.
- Legal description matching the original deed.
- Trust name and date of the trust instrument (e.g., “John Doe, Trustee of the Doe Family Revocable Trust dated January 1, 2020”).
3. Execute and Acknowledge the Deed
Sign the deed in the presence of a notary public. Arkansas Code Annotated § 18-12-101 requires deeds be acknowledged to be recorded. The notary’s stamp and signature confirm the authenticity of your signature.
4. Verify Tax Parcel ID and Legal Description
Contact the county assessor for the exact parcel ID number. Confirm the legal description matches the existing deed. Minor errors may delay recording.
5. Record the Deed with the County Recorder
Submit the original deed to the county recorder’s office where the property sits. Pay any recording fees and transfer taxes. Arkansas Code Annotated § 18-12-401 governs deed recordation and protects third-party purchasers.
6. Update Insurance, Mortgage, and Utilities
Notify your homeowner’s insurance carrier of the transfer. Amend the mortgage lender’s records if you have a mortgage. Update utility accounts to reflect the trust as the property owner.
7. Add the Property to Your Trust Schedule
Update your trust schedule or list of assets to include the newly transferred property. Keep the schedule with your trust documents for easy reference.
Helpful Hints
- Maintain an up-to-date copy of the trust document with each asset schedule.
- Keep original recorded deeds in a safe location such as a safe deposit box.
- Review your trust funding at least every two years or after major life events.
- Consult a title company if your property title has defects or unresolved liens.
- Ensure the deed wording matches exactly to avoid “scriveners errors.”
Disclaimer: This article provides general information under Arkansas law and does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.