If you are thinking about what happens to your assets after you pass on, whether your estate will have to go through probate depends on what you own, how it is titled and how much it is worth. Understanding this now can help you plan in a way that saves your family significant time, cost and stress later.
What probate is and when it applies
Probate is the court-supervised process of paying debts and distributing assets after you die. In Arkansas, it applies to assets held solely in your name with no beneficiary designation and no joint owner. The process can take months and comes with court costs and attorney fees.
Assets that bypass probate automatically
Certain assets can pass directly to your beneficiaries or co-owners without going through probate, regardless of your estate’s total value:
- Accounts with beneficiary designations: Life insurance policies, retirement accounts and bank accounts with payable-on-death or transfer-on-death designations pass directly to whoever you name.
- Jointly held property: Property you own together with another person under a right of survivorship arrangement, such as a shared bank account or co-owned real estate, passes automatically to the surviving owner.
- Assets held in a trust: Property placed in a revocable or irrevocable trust does not pass through probate. The trust’s terms govern distribution directly.
Proper titling and beneficiary designations are among the most effective steps you can take to keep your assets out of probate in Arkansas.
Arkansas’s small estate procedure can help your heirs avoid full probate
If the total value of your estate is $100,000 or less, your heirs may be able to file an Affidavit for Collection of Small Estate with the probate clerk instead of going through full probate. The homestead, certain exempt property and allowances for a spouse or children are not counted toward that threshold. To qualify:
- At least 45 days have passed since the date of death
- There are no unpaid claims against the estate
- No personal representative has been appointed or is pending
If your estate includes real estate, your heirs must also publish a notice in a local newspaper giving creditors three months to come forward before transferring the property.
When full probate applies to your estate
Your estate will generally need full probate if your assets exceed the small estate threshold, if disputes arise among your heirs, or if you own real estate that does not qualify for the simplified process. If your estate falls into any of these situations, working with a probate attorney in Little Rock can help your family determine which process applies and move through it as efficiently as possible.