Arkansas: Steps to Transfer Out-of-State Property Interest When Heirs Agree and Ancillary Probate May Not Be Needed | Arkansas Probate | FastCounsel
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Arkansas: Steps to Transfer Out-of-State Property Interest When Heirs Agree and Ancillary Probate May Not Be Needed

Detailed Answer

This FAQ explains how heirs under Arkansas law can transfer a decedent’s real property located in another state when all beneficiaries agree and formal ancillary probate may not be needed. Disclaimer: This article is for educational purposes only and does not constitute legal advice.

1. Confirm Whether Ancillary Probate Is Required

Under Ark. Code Ann. § 28-20-107, a nonresident personal representative must open ancillary probate in Arkansas when real property located elsewhere falls under administration. However, if the estate qualifies for custodial administration, you can avoid a full ancillary probate process. See Ark. Code Ann. § 28-22-101 et seq. (Custodial Administration).

2. Consider Custodial Administration for Small Estates

If the entire estate’s value does not exceed $75,000, an heir or beneficiary may petition the probate court in the decedent’s Arkansas county of domicile for custodial administration. The court will issue an order distributing the property interest directly to the heirs without appointing a full personal representative.

3. Prepare an Affidavit of Heirship and Heirs’ Deed

If custodial administration does not apply or you prefer not to open any probate proceeding, heirs can execute an Affidavit of Heirship and an Heirs’ Deed in the state where the property lies. The affidavit states: the decedent’s death; names and relationships of heirs; and that no ancillary probate is pending. Each heir signs the deed conveying their interest to the agreed transferee(s).

4. Execute and Notarize Documents Properly

Prepare the Affidavit of Heirship and Deed according to the recording jurisdiction’s format requirements. A notary must acknowledge each heir’s signature. Attach a certified copy of the decedent’s death certificate.

5. Record in the Out-of-State Jurisdiction

Submit the affidavit and deed to the county recorder or land registry in the state where the property is located. Pay all required recording and transfer taxes. Recording these documents clears the decedent’s interest and vests title in the transferee(s).

6. Update Arkansas Records and Tax Filings

Even though the property lies elsewhere, update any Arkansas filings: notify the county assessor of out-of-state asset disposition and include any gain or loss on the decedent’s final Arkansas income tax return.

Helpful Hints

  • Review Ark. Code Ann. § 28-20-107 and § 28-22-101 et seq. in full before proceeding.
  • Obtain a certified death certificate early to attach to all filings.
  • Contact the recorder’s office in the property’s state to confirm document formats and fee schedules.
  • Use consistent names and signatures across all documents to prevent title defects.
  • Consult a real estate attorney in the state where the property is located for local nuances.
  • Keep a complete file of recorded documents and court orders for future reference.

Disclaimer: This article is for educational purposes only and does not constitute legal advice.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.