AR HB1019

Creates the Arkansas Spendthrift Trust Act (§ 28-72-701 et seq.) establishing comprehensive rules for spendthrift trusts including creation, beneficiaries, trustee discretion, and restraints on alienation of trust interests.

Amends the Uniform Statutory Rule Against Perpetuities to allow property interests and powers of appointment to vest within 90 years of creation as an alternative to the traditional 21-year rule, and declares the common law rule against perpetuities not in force in Arkansas.

Allows settlors to create self-settled spendthrift trusts (trusts benefiting the settlor) if the trust is irrevocable and meets specific requirements, including having an in-state trustee when the settlor is a beneficiary.

Establishes creditor protections by limiting when creditors can challenge transfers to spendthrift trusts to 2 years after transfer (or 6 months after discovery) and requiring clear and convincing evidence of fraudulent transfer or violation of a legal obligation.

Repeals former § 28-73-501 through § 28-73-507 regarding beneficiary creditor rights and spendthrift provisions, replacing them with the new comprehensive spendthrift trust framework.