The proposed bill seeks to modernize the legal framework surrounding spendthrift trusts in Arkansas by introducing the Arkansas Spendthrift Trust Act and amending the Uniform Statutory Rule Against Perpetuities. Key changes include the assertion that "The common law rule against perpetuities is not in force in this state," and a new limitation on the suspension of the absolute power of alienation, which cannot exceed the lives of persons in being plus an additional thirty years. The bill also clarifies that future interests are void if they violate this time limit. Additionally, it outlines the applicability of the new regulations to trusts created both within and outside the state, and establishes a deadline of July 1, 2024, for declaring existing instruments void under the new chapter.

Moreover, the bill details the powers and responsibilities of trustees, including maintaining trust records and preparing income tax returns, while ensuring that at least one trustee is a natural person or a qualified trust company in the state if the settlor is a beneficiary. It emphasizes the rights of beneficiaries, stating they cannot assign their interests, and grants trustees absolute discretion over distributions. The legislation also introduces stringent requirements for creditors challenging transfers to spendthrift trusts, requiring clear evidence of fraudulent intent, and repeals outdated provisions related to beneficiary rights and definitions. Overall, the bill aims to provide clarity and protection for both settlors and beneficiaries in the context of spendthrift trusts.