Wealth Transfer Planning

When it comes to passing on your wealth, there’s no one-size-fits-all approach. “Which one is right for me?” you might be thinking. That depends on your assets and your goals. Some of the most common strategies we help clients use in Arkansas include: 

• Wills: A cornerstone of any wealth transfer plan, a will allows you to specify who receives your assets after you’re gone. Under Arkansas Code § 28-25-101, any person of sound mind who is 18 years or older can make a will. Without one, your assets will be distributed according to Arkansas intestacy laws, which may not align with your wishes. 
• Trusts: Trusts offer flexibility and control beyond what a basic will provides. A trust can help you avoid probate, provide for loved ones with special needs, or support charitable causes while potentially reducing estate taxes. 
• Gifting: You can reduce your taxable estate by giving gifts during your lifetime. In 2025, federal law allows you to give up to $19,000 per recipient annually without triggering gift tax consequences, according to the Internal Revenue Service (IRS). 
• Family Limited Partnerships (FLPs): These legal structures allow you to maintain control of family assets while gradually transferring ownership to your children or other family members. FLPs are especially useful for family businesses or investment portfolios. 
• Life insurance: A life insurance policy can provide immediate liquidity to cover estate taxes or equalize inheritances among heirs. Arkansas law (Arkansas Code § 23-79-131) offers certain protections for life insurance proceeds from creditors. 

There’s no single “right way” to transfer wealth—only the way that’s right for you and your family. The beauty of wealth transfer planning is that it can be as flexible and personal as your goals. 

Even with the best intentions, many Arkansans make mistakes that can derail their wealth transfer plans. Here are some common mistakes you don’t want to make when working on a plan to preserve more of your wealth for future generations: 

• Waiting too long to plan: Many people put off wealth transfer planning until it’s too late. Starting early gives you more options to minimize taxes and provides time to communicate your intentions with family members. 
• Failing to update documents: Major life events like marriages, divorces, births, or deaths should trigger a review of your wealth transfer plan. 
• Not considering tax implications: Taxes are often the key considerations when creating any sort of plan. While Arkansas doesn’t have a state estate tax, federal estate taxes can take a big bite out of large estates. Proper planning can help minimize this burden on your heirs. 
• Treating heirs equally rather than fairly: Sometimes, equal distribution isn’t the most appropriate approach. For example, if one child works in the family business while others don’t, an equal division could create problems for business continuity. 
• Failing to communicate: Perhaps the biggest mistake is not discussing your plans with family members. Open conversations can prevent misunderstandings and conflicts after you’re gone. 

Mistakes in wealth transfer don’t usually come from a lack of care. Most often, they come from trying to navigate a complicated wealth transfer planning process without the right support. At Arkansas Legacy Planning, we’re here to help you plan wisely and avoid the avoidable.