Stricken language would be deleted from and underlined language would be added to present law.
Act 570 of the Regular Session
1 State of Arkansas As Engrossed: H3/11/21
2 93rd General Assembly A Bill
3 Regular Session, 2021 HOUSE BILL 1162
4
5 By: Representative Maddox
6 By: Senator B. Ballinger
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING BENEFICIARY DEEDS;
10 TO PROHIBIT THE RECOVERY OF BENEFITS AGAINST AN
11 INTEREST ACQUIRED FROM A DECEASED RECIPIENT BY A
12 GRANTEE OF A BENEFICIARY DEED IN CERTAIN
13 CIRCUMSTANCES; AND FOR OTHER PURPOSES.
14
15
16 Subtitle
17 TO AMEND THE LAW CONCERNING BENEFICIARY
18 DEEDS; AND TO PROHIBIT THE RECOVERY OF
19 BENEFITS AGAINST AN INTEREST ACQUIRED
20 FROM A DECEASED RECIPIENT BY A GRANTEE OF
21 A BENEFICIARY DEED IN CERTAIN
22 CIRCUMSTANCES.
23
24
25 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
26
27 SECTION 1. Arkansas Code 18-12-608(a)(1)(B), concerning the terms of
28 beneficiary deeds, is amended to read as follows:
29 (B)(i) A beneficiary deed transfers the interest to the
30 designated grantee effective upon the death of the owner, subject to:
31 (a) All all conveyances, assignments,
32 contracts, leases, mortgages, deeds of trust, liens, security pledges, oil,
33 gas, or mineral leases, and other encumbrances made by the owner or to which
34 the real property was subject at the time of the owner's death, whether or
35 not the conveyance or encumbrance was created before or after the execution
36 of the beneficiary deed; and
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 As Engrossed: H3/11/21 HB1162
1 (b) A claim for reimbursement of federal or
2 state benefits by the Department of Human Services from the estate of the
3 grantor or the interest acquired by a grantee of the beneficiary deed under
4 20-76-436.
5 (ii) No legal or equitable interest shall vest in
6 the grantee until the death of the owner prior to revocation of the
7 beneficiary deed.
8
9 SECTION 2. Arkansas Code 20-76-436 is amended to read as follows:
10 20-76-436. Recovery of benefits from recipients' estates.
11 (a)(1) Federal or state benefits in cash or in kind, including, but
12 not limited to, Medicaid, Aid to Families with Dependent Children
13 [abolished], Transitional Employment Assistance Program, Temporary Assistance
14 for Needy Families, and food stamps distributed or paid by the Department of
15 Human Services as well as charges levied by the department for services
16 rendered shall upon the death of the recipient constitute a debt to be paid.
17 (2)(A) The department may make a claim against the estate of a
18 deceased recipient or the interest acquired from the deceased recipient by a
19 grantee of a beneficiary deed under 18-12-608 for the amount of any
20 benefits distributed or paid or charges levied by the department.
21 (B) If a grantee of a beneficiary deed under 18-12-608
22 makes a written request for a release or disclaimer of the department's
23 interest in the real property described in the beneficiary deed, the
24 department within thirty (30) calendar days of the request shall either:
25 (i) Make a claim against the interest acquired from
26 the deceased recipient by a grantee of the beneficiary deed; or
27 (ii) Provide the requested disclaimer and a release
28 suitable for recording in the real estate records of the county where the
29 real property is located.
30 (b)(1) The department shall not seek recovery against the estate of a
31 deceased recipient or the interest acquired from the deceased recipient by a
32 grantee of a beneficiary deed under 18-12-608 for the amount of any
33 benefits distributed or paid or charges levied if the recovery is not cost
34 effective or if the recovery works causes an undue hardship on the heirs or
35 devisees of the decedent's estate or the grantee of a beneficiary deed under
36 18-12-608.
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 As Engrossed: H3/11/21 HB1162
1 (2) In determining the existence of an undue hardship, the
2 department shall consider factors including, but not limited to, without
3 limitation the following:
4 (A) The asset subject to recovery is the sole income-
5 producing asset of the beneficiaries a beneficiary of the estate or the
6 grantee of a beneficiary deed under 18-12-608;
7 (B) Without receipt of the beneficiary deed or proceeds of
8 the estate, a grantee or beneficiary would become eligible for federal or
9 state benefits;
10 (C) Allowing a grantee of a beneficiary deed under 18-
11 12-608 to receive the interest under the beneficiary deed or a the
12 beneficiary to receive the inheritance from the estate would enable the
13 grantee or beneficiary to discontinue eligibility for federal or state
14 benefits;
15 (D) The asset subject to recovery is a home with a value
16 of fifty percent (50%) or less of the average price of homes a home in the
17 county where the homestead is located, as of the date of the deceased
18 recipient's death; or
19 (E) There are other compelling circumstances.
20 (c) To the extent that there is any a conflict between the preceding
21 criteria listed in subsection (b) of this section and the standards that may
22 be specified by the United States Secretary of Health and Human Services, the
23 federal standards shall prevail.
24 (d) Applicants for federal or state benefits shall be notified in
25 writing in prominent type on the application form that the department may
26 make a claim against their estate or the interest acquired from the applicant
27 by a grantee of a beneficiary deed under 18-12-608.
28
29 /s/Maddox
30
31
32 APPROVED: 4/5/21
33
34
35
36
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Statutes affected:
Old version HB1162 Original - 1-12-2021 01:56 PM: 18-12-608(a)
Old version HB1162 V2 - 3-11-2021 09:34 AM: 18-12-608(a)
HB 1162: 18-12-608(a)
Act 570: 18-12-608(a)