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BENEFITS OF USING AN ARKANSAS BENEFICIARY DEED:

1.        The Beneficiary Deed, or Transfer-on-Death Deed, enables owners of Arkansas real estate to pass title
to that real estate on their deaths directly to their chosen beneficiaries, without making the real estate the
subject of probate proceedings.

2.        For many individuals and married couples with their residence as their largest single asset, the use of an
Arkansas Beneficiary Deed may be more suitable and certainly less costly than the creation and funding of a
living trust, the costs of which may be $2500-$3000, depending on the number and types of assets owned.

3.        The execution and recording of an Arkansas Beneficiary Deed is considerably less burdensome than the
creation, funding, and administration of a living trust.

4.         After execution and recording of a Beneficiary Deed, the owners may still

           A.        Sell their real estate;
           B.        Mortgage their real estate;
           C.        Refinance an existing mortgage;
           D.        Obtain a reverse mortgage;
           E.        Change the named beneficiaries; or
           E.        Cancel the Beneficiary Deed outright,

           all as provided by Arkansas law.

5.        An Arkansas Beneficiary Deed does not result in a present gift or require the preparation and filing of a
gift tax return.

6.        An Arkansas Beneficiary Deed, upon the death of the owners, results in the real estate passing to their
named beneficiaries with a stepped-up basis for tax purposes.

7.        Owners do not lose the $300 Homestead Credit on their annual real estate property taxes.

8.        The owners may designate multiple beneficiaries, as either joint tenants with right of survivorship, tenants
in common, holders of a tenancy by the entirety, or any other tenancy that is otherwise valid under the laws of
the State of Arkansas.

9.        Owners using an Arkansas Beneficiary Deed may designate successor beneficiaries.

10.        An Arkansas Beneficiary Deed may be used to transfer an interest in real property to a trust estate even
if the trust is revocable, i.e., a living trust.

11.        In the event of a bankruptcy or divorce, an Arkansas Beneficiary Deed shall be treated as a revocable
trust.

DRAW BACKS TO USING AN ARKANSAS BENEFICIARY DEED:

1.        An Arkansas Beneficiary Deed while conveying an interest in real property, also conveys any debt
secured by a lien on the property to the beneficiaries. This includes all conveyances, assignments, contracts,
mortgages, deeds of trust, liens, security pledges, oil, gas, or mineral leases, and other encumbrances made
by the owner or to which the real property was subject at the time of the owner's death.

2.        The interest received by the beneficiaries of an Arkansas Beneficiary Deed, are subject to all claims for
federal or state benefits that could have been recovered by the Department of Health and Human Services
from the estate of the owner under Ark. Code Section 20-76-436.

3.        The value of the real property remains in the owner's estate for federal and state estate tax purposes.

4.        Where there are multiple owners (Grantors) with rights of survivorship, upon the death of a joint tenant,
a surviving tenants may change or revoke the Beneficiary Deed and thus frustrate the desires and intentions of
the deceased joint tenant.

5.        If any beneficiary is a minor child, the child's interest will be left outright to the child unless the deed
names a trust or an adult under the Arkansas Uniform Transfer to Minors Act.

Example 1:   Husband and wife to their two grown children.

Situation One:

John and Mary Smith own a home worth $150,000 and have two grown children, Bob and Lisa. John and Mary
both have wills. The administrative costs to include the home in the Smith Estate upon the passing of both
John and Mary Smith would be roughly $4,675.

Situation Two:

John and Mary Smith own a home worth $150,000 and have two grown children, Bob and Lisa. During John
and Mary's lifetime, they create a Beneficiary Deed giving the home to Bob and Lisa. John and Mary keep the
home during both of their lifetimes and the real property only passes to Bob and Lisa upon the death of both
owners. When the Smith Estate is counted up, the home is not included. The Estate saves the $4,675 in
probate administration costs and the home goes to the Smith children, which is what John and Mary intended.

Cost Summary:

House, without Beneficiary Deed, is subject to probate administration legal fees:                $4,675

House, passing with Beneficiary Deed:                           Only the cost of the Beneficiary Deed

Planning Strategy	No Will	With Last Will & Testament	Beneficiary Deed with Last Will & Testament
Total Fees (See above)	$4,675	$4,675	$0
Reasonable Cost of Will	----------------------------------------	$250	$250
Reasonable Cost of Deed	----------------------------------------	-----------------------------------------	$250
Estimated Out-of-Pocket Costs	$4,675	$4,925	$500*
PROJECTED SAVINGS			$4,175
PROJECTED SAVINGS IF MARRIED			$3,925

Category	Fee %	No Will	With Last Will & Testament	Beneficiary Deed with Will
First $5,000	5.00%	$250	$250	$0
Next $20,000	4.00%	$800	$800	$0
Next $75,000	3.00%	$2,250	$2,250	$0
Next $300,000	2.75%	$1,375	$1,375	$0
Next $600,000	2.5%
Balance	2.0%
TOTAL		$4,675	$4,675	$0