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Taxes & Budget

SB404

To Require Notification To The Department Of Finance And Administration Of The Probate Of An Estate If The Department Of Finance And Administration Has Filed A Certificate Of Indebtedness Against The Decedent.

Introduced

Last Action (March 6, 2025): Sine Die adjournment

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AI-Generated Summary

Senate Bill 404 amends Arkansas Code § 28-40-111 to formalize requirements for notifying the Arkansas Department of Finance and Administration (DFA) during the probate process. Specifically, the bill mandates that personal representatives must serve notice of the probate of an estate to the DFA if the department has filed a certificate of indebtedness against the decedent. The bill specifies the contact information for the DFA's Garnishment Section, Probate Division, for these purposes. Additionally, it requires that a copy of the petition for probate or administration and the decedent’s Social Security number be included with the notice. This measure ensures that the state is alerted to potential outstanding tax debts or other financial obligations owed by the deceased to the state, allowing the DFA to participate as a creditor in the probate proceedings.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiary of this bill is the State of Arkansas, specifically the Department of Finance and Administration. By mandating notification, the state increases its ability to identify and collect on outstanding debts, such as unpaid taxes or other state-held financial claims, against the assets of a decedent's estate before those assets are distributed to heirs or other beneficiaries.

Who Might Suffer?

Personal representatives and heirs or devisees of an estate could be negatively impacted. Personal representatives face an additional administrative burden and legal responsibility to identify state-filed certificates of indebtedness and ensure proper service of notice. Furthermore, heirs and devisees may see a reduction in their inheritance, as the formalization of this notice process facilitates the state's ability to recover debts from the estate's assets, potentially leaving less available for distribution to beneficiaries.

Vote Records

Third Reading

March 13, 2025
Yea: 15 Nay: 9 NV: 11 Absent: 0 Failed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Jonathan Dismang Republican Senate Nay
Greg Leding Democrat Senate Yea
Missy Irvin Republican Senate Nay
Bryan King Republican Senate NV
Kim Hammer Republican Senate NV
Stephanie Flowers Democrat Senate Yea
Frederick Love Democrat Senate NV
Terry Rice Republican Senate NV
Reginald Murdock Democrat Senate NV
Gary Stubblefield Republican Senate Nay
Jim Dotson Republican Senate NV
John Payton Republican Senate Nay
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Nay
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate Nay
Dan Sullivan Republican Senate NV
David Wallace Republican Senate Yea
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate Yea
Scott Flippo Republican Senate Nay
Clint Penzo Republican Senate NV
Mark Johnson Republican Senate Yea
Ricky Hill Republican Senate Nay
Jamie Scott Democrat Senate Yea
Breanne Davis Republican Senate NV
Ben Gilmore Republican Senate Nay
Joshua Bryant Republican Senate Yea
Matt McKee Republican Senate Yea
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate NV
Tyler Dees Republican Senate NV
Matt Stone Republican Senate Yea
Read Full Bill on arkleg.state.ar.us