SB151 Summary

• Adds Arkansas Code § 23-88-107 to establish that transferring real property into a revocable living trust by warranty deed does not affect title insurance or property and casualty insurance coverage if the trust settlor remains a beneficiary during their lifetime.

• Provides that after the transfer, the trustee shall be considered an insured party, with insurance coverage subject to the same defenses available to the insurance company against the original named insured.

• Specifies that if the settlor is a beneficiary at the time of transfer, the transaction shall not affect eligibility for the homestead property tax credit under § 26-26-1118 or redemption rights under § 26-37-315.

• Prohibits the transfer from accelerating due-on-sale clauses or similar provisions under mortgages or security interests when the settlor remains a beneficiary.