(a) A lottery prize or any portion of a lottery prize remaining unpaid at the death of a lottery prize winner shall be paid to the estate of the deceased lottery prize winner or to the trustee of a trust established by the deceased lottery prize winner as settlor if:
- (1) A copy of the trust document or instrument has been filed with the Office of the Arkansas Lottery along with a notarized letter of direction from the settlor; and
- (2) No written notice of revocation has been received by the office before the settlor's death.
- (b) Following a settlor's death and before any payment to a successor trustee, the office shall obtain from the trustee a written agreement to indemnify and hold the office harmless with respect to any claims that may be asserted against the office arising from payment to or through the trust.
- (c) Under an appropriate judicial order, an individual shall be paid the lottery prize to which a winner is entitled.
- (d) The Director of the Office of the Arkansas Lottery reserves the right to petition any court of competent jurisdiction to determine the proper payment of any prize winnings due to a deceased prize winner.
- (e) If any lottery prize is properly owned by an individual under eighteen (18) years of age, such as through inheritance, it must be paid to the parent, guardian, or custodian of such person under the Arkansas Uniform Transfers to Minors Act, Arkansas Code § 9-26-201 et seq.