§ 28-72-501. Short title
This subchapter shall be known as the “Long-Term Intergenerational Security Act of 1995”.
§ 28-72-502. Legislative intent
(a) It is found and declared by the General Assembly that the establishment of a long-term intergenerational security trust with tax deferment provisions for an individual under eighteen (18) years of age will enable the individual’s family and friends to take advantage of long-term growth opportunities and provide for the accumulation of a sizable sum […]
§ 28-72-503. Definition
For purposes of this subchapter, “long-term intergenerational security trust” means a trust established for an individual under eighteen (18) years of age which contains the provisions prescribed in § 28-72-504(a).
§ 28-72-504. Long-term intergenerational security trust agreement
(a) The long-term intergenerational security trust agreement must: (1) Name an Arkansas resident or an entity located in Arkansas as trustee; (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; (3) (A) Provide that the trustee shall not distribute any funds […]
§ 28-72-505. Tax and penalty on earnings
(a) (1) All distributions of funds from the long-term intergenerational security trust shall be taxable as provided in the Income Tax Act of 1929. (2) All distributions from the trust shall be deemed principal until all contributions of principal have been withdrawn. (b) (1) In addition to any income tax imposed for distributions from the […]
§ 28-72-506. When beneficiary may determine investment
Upon reaching eighteen (18) years of age, the beneficiary of a long-term intergenerational security trust may determine, to the extent possible, the manner in which the funds are to be invested.
§ 28-72-507. Distribution on death
Upon the death of the beneficiary, all funds remaining in the long-term intergenerational security trust shall be distributed to the beneficiary’s estate, and all undistributed income shall be included in the beneficiary’s final tax return.