Selling Arkansas Land Held in a Trust: What to Do in 2026

Selling Arkansas land is rarely “just” a real estate transaction—especially when the property sits inside a trust. The upside is real: land values have risen across the U.S., and Arkansas parcels can command premium pricing in the right locations. For example, U.S. farm real estate value averaged $4,350 per acre in 2025, a 4.3% increase ($180 per acre) from 2024, according to the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary Report. In that same report, U.S. cropland value averaged $5,830 per acre in 2025, up $260 per acre (4.7%) year over year, per the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary. Even pastureland continues to climb: U.S. pastureland value reached $1,920 per acre in 2025, a 5% increase from 2024, according to USDA National Agricultural Statistics Service (NASS) via American Farm Bureau.

At the same time, trust sales require more paperwork, more approvals, and tighter compliance than a typical deed transfer. The goal is to convert a trust-held asset into cash (or other investments) while following the trust terms, Arkansas law, and the trustee’s fiduciary duties.

Why selling land held in a trust is different

A land trust (or any trust holding real property) works like a legal container: a grantor places property into the trust, a trustee manages it, and beneficiaries receive the benefit under the trust’s rules. When you sell, the trustee typically signs on behalf of the trust, and the sale proceeds flow back into the trust—not directly to an individual—unless the trust requires distributions.

Common trust types you’ll see in Arkansas

1. Revocable trusts: The grantor often retains control and can amend terms during life.
2. Irrevocable trusts: The terms are harder to change, and sales may require beneficiary consent or court involvement depending on the trust language.

Knowing which kind of trust you’re working with shapes everything: who must approve the sale, how proceeds get handled, and what tax planning makes sense.

Market context: why timing and pricing matter in Arkansas

Arkansas land values don’t move in a vacuum. Local pricing reflects development pressure, commodity cycles, interest rates, and farm profitability. In Benton County, Arkansas, farmland averaged $13,105 per acre in 2023, with prices increasing nearly 500% from 2002–2023, according to Investigate Midwest citing Iowa Farmland Value Surveys and USDA Census of Agriculture. That kind of growth can influence expectations statewide, especially in counties seeing population and commercial expansion.

Farm income signals can also affect buyer behavior. One outlook projects Arkansas net farm income will decrease by 8% or $2.91 billion in 2025 compared to 2024, and that Arkansas crop receipts will decline by 13%, or $620 million, in 2025, according to the University of Arkansas System Division of Agriculture and Rural and Farm Finance Policy Analysis Center (RaFF). Meanwhile, another forecast points the other direction: Arkansas net farm income is projected to increase by 22% or $681 million to $3.76 billion in 2025, per the RaFF Spring 2025 Arkansas Farm Income Outlook. Together, these projections highlight a practical truth for sellers: land can remain valuable even when farm operating results look volatile, but your buyer pool (and their financing appetite) may shift quickly.

Zooming out, agriculture remains a major economic engine that supports ongoing land demand for production, logistics, and rural development. Agriculture contributed $25.63 billion (14% of state value added) to the Arkansas economy in 2023 and supported 248,201 jobs, according to the University of Arkansas System Division of Agriculture FSA97 Economic Contribution Report. In that same report, agricultural production in Arkansas supported 82,480 jobs and $4.54 billion in labor income in 2023, per University of Arkansas System Division of Agriculture FSA97. These fundamentals help explain why well-located Arkansas acreage—farm, pasture, timber, or transitional land—can attract serious interest.

Step-by-step: how to sell Arkansas land from a trust

1) Review the trust document and trustee powers

Start with the trust agreement (and any amendments). The trustee must follow it exactly. Look for:

• Authority to sell real property (and whether sales require extra steps)
• Beneficiary consent requirements
• Notice provisions (who must be informed and when)
• Distribution rules for sale proceeds
• Any restrictions (e.g., conservation intent, family buyout provisions, or limits on financing)

2) Confirm who must approve the sale

Depending on the trust’s terms and how title is held, you may need one or more of the following before listing:

• Written consent from beneficiaries
• Court approval (in select situations)
• Formal notice to interested parties

When in doubt, have an Arkansas attorney review the trust language before you market the property. That upfront clarity prevents delayed closings and contested transactions.

3) Establish a defensible value and pricing strategy

Trustees have a fiduciary duty to act in the best interests of beneficiaries, so pricing should be evidence-based. Use a layered approach:

1. Land appraisal by an appraiser experienced in Arkansas acreage (cropland vs. pasture vs. timber vs. recreational use can shift valuation dramatically).
2. Comparable sales analysis (recent local transactions, adjusted for access, utilities, road frontage, and improvements).
3. Market context (national trendlines matter: for example, U.S. cropland averaged $5,830 per acre in 2025 and U.S. pastureland reached $1,920 per acre in 2025, per USDA NASS Land Values 2025 Summary and USDA NASS via American Farm Bureau).

Marketing trust-held land: what buyers need to know

Create a listing that answers land-buyer questions fast

A strong land listing reduces friction and attracts qualified buyers. Include:

• Acreage, parcel ID(s), and a clean legal description reference
• Access details (public road frontage, easements, gated entry)
• Utilities (electric, water, septic feasibility, broadband)
• Land characteristics (timber, pasture, tillable acres, creek/ponds, elevation, floodplain notes)
• Permitted and likely uses (ag, hunting, homesite, future development where applicable)
• Rights and encumbrances (mineral rights, leases, conservation easements)
• Trust sale logistics (who signs, expected timeline, any required approvals)

Distribute the property where acreage buyers actually search

1. Major land and real estate platforms
2. Local land-focused brokers (especially for farm, timber, and recreational tracts)
3. Targeted outreach to neighboring landowners and operators
4. Social media and email lists for hunting, farming, and rural lifestyle buyers
5. Local networks (co-ops, farm managers, attorneys, and CPAs)

Negotiation and closing: the trust-specific checklist

1) Show the property and document interest

Offer guided tours when possible, provide maps and disclosures, and track every inquiry. Land buyers frequently return with follow-up questions about soils, access, and survey boundaries.

2) Evaluate offers beyond the headline price

Compare offers on:

• Net proceeds after concessions, commissions, and closing costs
• Contingencies (financing, inspection, rezoning, feasibility periods)
• Closing timeline (and whether the trust can meet it)
• Proof of funds or lender qualification

3) Open escrow with a title company or attorney

Use a professional who routinely handles Arkansas land transactions. The trustee will sign the contract and closing documents in their fiduciary capacity.

4) Prepare for buyer due diligence

Expect requests for:

• Title commitment and any curative work
• Survey (boundary, acreage confirmation, easements)
• Environmental review (especially for prior dumps, old structures, or agricultural chemical concerns)
• Soil/perc tests for homesites or agricultural productivity data
• Lease reviews (farm leases, hunting leases, timber agreements)

5) Resolve title or trust issues quickly

If the title search reveals liens, boundary disputes, or unclear access, address them before the closing date. If the trust’s authority is questioned, your attorney may need to supply excerpts of the trust or certifications permitted by law.

6) Close and route proceeds correctly

At closing, the trustee signs the deed and settlement statements, and the sale proceeds go to the trust’s designated account. Then the trustee follows the trust instructions for reinvestment or distribution.

Taxes, compliance, and special land restrictions

Taxes and reporting

Selling land from a trust can trigger capital gains and trust income tax reporting, and it may affect estate planning outcomes. Coordinate early with a CPA or tax attorney who works with trusts and Arkansas real estate so the trustee can document decisions and avoid preventable tax surprises.

Legal compliance and fiduciary duty

The trustee must comply with:

• The trust document
• Arkansas trust and property laws
• Disclosure requirements and any environmental rules that apply

This matters even more when markets feel uncertain. Nationally, land values still moved upward in 2025—U.S. farm real estate averaged $4,350 per acre (up 4.3%), per the USDA NASS Land Values 2025 Summary Report—but local farm income expectations can swing, as shown by the differing 2025 Arkansas net farm income projections from RaFF (via University of Arkansas System Division of Agriculture) and the RaFF Spring 2025 Arkansas Farm Income Outlook.

Conservation easements and use limitations

If the land has a conservation easement or other deed restriction, disclose it upfront. These limitations can narrow the buyer pool, affect financing, and change valuation—but they don’t prevent a sale when handled transparently.

Alternatives to a traditional listing

1) Sell directly to a land investment company

A direct sale can reduce showings, contingencies, and timeline risk—useful when the trust needs liquidity or wants a simpler process. Always verify the buyer’s track record and confirm the trustee has authority to accept the offer.

2) Auction the property

Auctions can work well for unique tracts, high-demand parcels, or estates seeking a defined timeline. The right marketing and reserve strategy can attract competitive bidding.

3) Offer seller financing (if the trust allows it)

Trust-held seller financing can expand the buyer pool and potentially increase total returns, but it adds servicing and default risk. The trustee should confirm the trust permits financing and document why the terms serve beneficiaries.

Final thoughts

Selling Arkansas land from a trust takes planning, documentation, and disciplined execution. When you price the property with real market support, market it clearly, and close it with trust-compliant procedures, you protect beneficiaries and improve outcomes.

Arkansas remains deeply tied to agriculture and land-based industries—agriculture contributed $25.63 billion (14% of state value added) to the Arkansas economy in 2023 and supported 248,201 jobs, while agricultural production supported 82,480 jobs and $4.54 billion in labor income in 2023, according to the University of Arkansas System Division of Agriculture FSA97. Pair that foundation with national land value growth—like the 2025 increases reported by USDA NASS—and you have a strong case for treating a trust-held land sale as a strategic financial event, not a rushed transaction.