What is a construction trust?
A construction trust is a type of legal mechanism used in Arkansas Inheritance Law that allows a person to set aside assets during their lifetime in order to provide for the construction of a new home or other development project. The construction trust is created through a written agreement between the person who is setting up the trust and the person who will manage the trust, usually a bank or other financial institution. The trust assets are then placed in the construction trust and are used to pay for the costs of the construction project. In addition to money, the trust may also be used to set aside real estate, equipment, and other assets that may be needed for the project. The trust also provides the trustee with certain protections for managing the trust and the assets within it. The construction trust is an important tool for ensuring that projects are properly and legally funded and managed.
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