The bill amends Arkansas Code Title 23, Chapter 88, Subchapter 1 to introduce a new section, 23-88-107, which addresses the transfer of real property into a revocable living trust by warranty deed. It specifies that such a transfer will not impact the coverage of title insurance or property and casualty insurance, provided that the settlor remains a beneficiary of the trust during their lifetime. Additionally, once the transfer is effective, the trustee will be considered insured, and the insurance coverage will be subject to the defenses available to the insurance company against the original named insured.

Furthermore, the bill clarifies that if the settlor is a beneficiary at the time of the transfer, it will not affect their eligibility for the homestead property tax credit or the right of redemption, nor will it trigger a due-on-sale clause or similar provisions in a mortgage or security interest. This legislation aims to streamline the process of transferring real property into revocable living trusts while ensuring that existing insurance and tax benefits remain intact.