AR HB1162

Beneficiary deed transfers remain subject to all existing conveyances, mortgages, liens, and encumbrances, plus Department of Human Services claims for benefit reimbursement under Arkansas Code § 20-76-436.

Department of Human Services must respond within 30 calendar days to a grantee's written request for release or disclaimer by either making a claim against the beneficiary deed interest or providing a recordable release.

Department shall not seek recovery against beneficiary deed interests if recovery is not cost effective or would cause undue hardship on heirs, devisees, or the grantee.

Undue hardship factors include: the asset being the sole income-producing property, beneficiary eligibility for benefits without the inheritance, a home valued at 50% or less of average county home prices, or other compelling circumstances.

Applicants for federal or state benefits must be notified in prominent type on application forms that the department may claim against their estate or beneficiary deed interests.