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(a) The long-term intergenerational security trust agreement must:
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(1) Name an Arkansas resident or an entity located in Arkansas as trustee;
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(2) Provide that contributions to the trust shall not exceed four thousand dollars ($4,000) during any taxable year prior to the beneficiary’s death;
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(3)
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(A) Provide that the trustee shall not distribute any funds from the trust to the beneficiary of the trust until the beneficiary reaches fifty-five (55) years of age, at which time the trustee shall begin distributing trust funds to the beneficiary.
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(B) The funds shall not be deemed to be constructively received when the beneficiary reaches fifty-five (55) years of age; and
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(4) Require the trustee to notify the Department of Finance and Administration of all distributions of principal and interest from the trust during the previous taxable year within thirty-one (31) days immediately following the end of the taxable year.
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(b) A beneficiary must file a copy of the long-term intergenerational security trust agreement with his or her income tax return for each taxable year the beneficiary claims the tax benefits provided in this subchapter.
