Ala. Code § 19-1-7 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-7
Section 19-1-7 Deposit in Name of Fiduciary as Such
Status: in_force

If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check.
Ala. Code § 19-3A-402 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-402
Section 19-3A-402 Distributions from Trust or Decedent’s Estate
Status: in_force

A fiduciary shall allocate to income an amount received as a distribution of income from a trust or a decedent’s estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or decedent’s estate. If a fiduciary purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a fiduciary, then Section 19-3A-401 or Section 19-3A-415 applies to a receipt from such a trust.
Ala. Code § 19-3-104 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-104
Section 19-3-104 Petition to Enforce Liability - Charging Real Property
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3B-202 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-202
Section 19-3B-202 Jurisdiction Over Trustee and Beneficiary
Status: in_force

(a) A trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving a trust:

(1) by accepting the trusteeship of a trust whose settlor was a resident of this state at the time of the trust’s creation, or in the case of testamentary trusts, the settlor was a resident of this state at death;

(2) by accepting the trusteeship of a trust having its principal place of administration in this state; or

(3) by moving the principal place of administration of the trust to this state.

Notwithstanding the foregoing, subsection (a)(1) shall not apply if the settlor designates the law of a jurisdiction other than this state to govern the trust.

(b) With respect to their interests in the trust, the beneficiaries of a trust having its principal place of administration in this state are subject to the jurisdiction of the courts of this state regarding any matter involving the trust. By accepting a distribution from such a trust, the recipient submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

(c) This section does not preclude other methods of obtaining jurisdiction over a trustee, beneficiary, or other person receiving property from the trust.
Ala. Code § 19-3B-503 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-503
Section 19-3B-503 Exceptions to Spendthrift Provision
Status: in_force

(a) In this section, “child” includes any person for whom an order or judgment for child support has been entered in this or another state.

(b) A spendthrift provision is unenforceable against:

(1) a beneficiary’s child, spouse, or former spouse who has a judgment or court order against the beneficiary for support or maintenance;

(2) a judgment creditor who has provided services for the protection of a beneficiary’s interest in the trust; and

(3) a claim of this state or the United States to the extent a statute of this state or federal law so provides.

(c) A claimant against whom a spendthrift provision cannot be enforced may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary. The court may limit the award to such relief as is appropriate under the circumstances.
Ala. Code § 19-3B-808 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-808
Section 19-3B-808 Powers to Direct
Status: in_force

(a) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust.

(b) If the terms of a trust confer upon a person other than the settlor of a revocable trust power to direct certain actions of the trustee, then the trustee shall act in accordance with an exercise of the power unless the attempted exercise is manifestly contrary to the terms of the trust or the trustee knows the attempted exercise would constitute a serious breach of a fiduciary duty that the person holding the power owes to the beneficiaries of the trust.

(c) The terms of a trust may confer upon a trustee or other person a power to direct the modification or termination of the trust.

(d) A person, other than a beneficiary, who holds a power to direct is presumptively a fiduciary who, as such, is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct is liable for any loss that results from breach of a fiduciary duty.
Ala. Code § 19-3-105 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-105
Section 19-3-105 Misapplication of Assets
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-120 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-120
Section 19-3-120 Classes of Authorized Investments; Repeal of Conflicting Statutes
Status: reserved

(a) Unless otherwise authorized or directed by the court having jurisdiction thereof, or by the will, trust agreement or other document which is the source of authority, a trustee, executor, administrator, guardian or one acting in any other fiduciary capacity, other than as a trustee governed by the Alabama Uniform Trust Code, with the exercise of reasonable business prudence, in addition to any other investments now permitted by law, may invest funds in securities or investments which, at the time of the making or purchase thereof, are included in one or more of the following classes:

(1) Bonds or other interest-bearing obligations of the United States of America, or payment of which the United States of America has guaranteed as to both principal and interest.

(2) Bonds issued by the Federal Land Bank, under the act of Congress of the United States of America, designated as “the Federal Farm Loan Act,” and acts amendatory thereof.

(3) Bonds or other interest-bearing obligations of any state of the United States of America.

(4) General obligation bonds pledging the full faith and credit, of any county of the State of Alabama which county for a period of five years next preceding the purchase of the bonds shall not have made default in the payment of principal or interest on any of its funded obligations.

(5) Interest-bearing general obligations pledging the full faith and credit, including interest-bearing warrants, of any board of education of any county or municipality of the State of Alabama secured by pledge of the three-mill school tax.

(6) Promissory notes, bonds, or other evidences of indebtedness secured directly or collaterally by mortgage or trust deed which is a first lien on improved real estate in this or any other state of the United States of America; provided, that:

a. No interest or participation in any note, bond, or other evidence of indebtedness secured by mortgage shall hereafter be purchased for any fiduciary account unless the entire principal indebtedness secured by the mortgage shall at the time be controlled by the fiduciary, that:

b. No such interest or participation less than the entire indebtedness shall at any time be sold by the fiduciary to any person, estate, trust, or other entity, not controlled by the fiduciary, and that:

c. No fiduciary shall hereafter purchase from any trust or estate under its control or from itself for any trust or estate any such loan, bond, or other evidence of indebtedness secured by mortgage, or interest therein, unless the items so acquired shall in good faith and with due diligence have originally been made or acquired by the fiduciary for trust investment; and provided further, that this section shall not, insofar as the same is prohibited by the constitution of this state, authorize the investment of such funds in the stocks or bonds of private corporations.

(7) As a deposit in the savings department of any bank which is a member of the Federal Deposit Insurance Corporation. In the event the fiduciary is such a bank, such deposit may be made in its own savings department, and in such event, it shall only be liable for interest thereon at the same rates, and subject to the same regulations as other savings deposits therein; provided, that any such deposit in the savings account shall not exceed the amount authorized to be insured by the Federal Deposit Insurance Corporation.

(8) Bonds, the issuance of which has been authorized by the director of the Alabama Securities Commission and which are secured directly or collaterally by mortgages or trust deeds which are first liens on improved real estate in this or any other state of the United States of America; provided, that the value by appraisal of the realty must be not less than one and one-half times the amount of any mortgage secured by the realty; except:

a. Mortgages guaranteed or insured in whole or in part by the Federal Housing Administrator, or

b. Mortgages guaranteed or insured in whole or in part by the Administrator of Veterans’ Affairs of the United States. Nothing in this subdivision shall prohibit the bonds from being secured by more than one first lien. In the event that any, or all of the first liens securing the bond issue are satisfied, other securities authorized by law for the investment of trust funds may be substituted therefor.

(9) Obligations of the African Development Bank.

(b) The power herein given is in addition to and not in derogation of any power of investment given under existing law, but to the extent that any statute now in force is in conflict herewith, the same is hereby repealed. Effective January 1, 2007, the classes of investments that may be made by trustees shall be governed by Chapter 3B instead of this section.
Ala. Code § 19-3-322 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-322
Section 19-3-322 Powers of Trustee
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3B-103 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-103
Section 19-3B-103 Definitions
Status: in_force

In this chapter:

(1) ACTION, with respect to an act of a trustee, includes a failure to act.

(2) ASCERTAINABLE STANDARD means a standard relating to an individual’s health, education, support, or maintenance within the meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code of 1986, as in effect on January 1, 2007, or as later amended.

(3) BENEFICIARY means a person that:

(A) has a present or future beneficial interest in a trust, vested or contingent; or

(B) in a capacity other than that of trustee, holds a power of appointment over trust property.

(4) CHARITABLE TRUST means a trust, or portion of a trust, created for a charitable purpose described in Section 19-3B-405(a).

(5) CONSERVATOR means a person appointed by the court to administer the estate of a minor or adult individual.

(6) ENVIRONMENTAL LAW means a federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment.

(7) GUARDIAN means a person who has qualified as a guardian of a minor or incapacitated person pursuant to parental or spousal nomination or court appointment and includes a limited guardian as described in Section 26-2A-78(e) and Section 26-2A-105(c), but excludes one who is merely a guardian ad litem.

(8) INTERESTS OF THE BENEFICIARIES means the beneficial interests provided in the terms of the trust.

(9) JURISDICTION, with respect to a geographic area, includes a state or country.

(10) PERSON means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency, or instrumentality; public corporation, or any other legal or commercial entity.

(11) POWER OF WITHDRAWAL means a presently exercisable general power of appointment other than a power exercisable by a trustee which is limited by an ascertainable standard, or which is exercisable by another person only upon consent of the trustee or a person holding an adverse interest.

(12) PRESUMPTIVE REMAINDER BENEFICIARY means a person who would be entitled to the principal of a trust if the income interest were immediately terminated, and if a trust contains a power of appointment, then the holder of such power of appointment shall also be a presumptive remainder beneficiary.

(13) PROPERTY means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein. Property includes choses in action, claims, and interests created by beneficiary designation under policies of insurance, financial instruments and deferred compensation and other retirement arrangements, whether revocable or irrevocable.

(14) QUALIFIED BENEFICIARY means a living beneficiary who, on the date the beneficiary’s qualification is determined:

(A) is a distributee or permissible distributee of trust income or principal;

(B) would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in paragraph (A) terminated on that date, but the termination of those interests would not cause the trust to terminate; or

(C) would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.

(15) REVOCABLE, as applied to a trust, means revocable by the settlor without the consent of the trustee or a person holding an adverse interest.

(16) SETTLOR means a person, including a testator, who creates, or contributes property to, a trust. If more than one person creates or contributes property to a trust, then each person is a settlor of the portion of the trust property attributable to that person’s contribution except to the extent another person has the power to revoke or withdraw that portion.

(17) SPENDTHRIFT PROVISION means a term of a trust which restrains both voluntary and involuntary transfer of a beneficiary’s interest.

(18) STATE means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band recognized by federal law or formally acknowledged by a state.

(19) TERMS OF A TRUST means the manifestation of the settlor’s intent regarding a trust’s provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding.

(20) TRUST INSTRUMENT means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto.

(21) TRUSTEE includes an original, additional, and successor trustee, and a co-trustee.
Ala. Code § 19-3B-805 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-805
Section 19-3B-805 Costs of Administration
Status: in_force

In administering a trust, the trustee may incur costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.
Ala. Code § 19-3B-906 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-906
Section 19-3B-906 Language Invoking Standard of Prudent Investor Rule
Status: in_force

The following terms or comparable language in the terms of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this chapter: “investments permissible by law for investment of trust funds,” “legal investments,” “authorized investments,” “using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital,” “prudent man rule,” “prudent trustee rule,” “prudent person rule,” and “prudent investor rule.”
Ala. Code § 19-3B-1301 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-1301
Section 19-3B-1301 Trust Concerning Lands Required to Be in Writing
Status: in_force

No trust concerning lands, except such as results by implication or construction of law, or which may be transferred or extinguished by operation of law, can be created, unless by instrument in writing, signed by the party creating or declaring the same, or his or her agent or attorney lawfully authorized thereto in writing.
Ala. Code § 19-3-34 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-34
Section 19-3-34 Objections to Claims - Conduct of Hearing; Order Allowing or Disallowing Claim
Status: in_force

On the day appointed for the hearing, or any day to which the same may be continued, the register or clerk must proceed to hear and note the testimony for and against the contested claim, the verified claim or statement thereof being prima facie evidence of its correctness, and must make an order allowing or disallowing the claim, in whole or in part, according to the evidence.
Ala. Code § 19-3-102 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-102
Section 19-3-102 Petition to Enforce Liability - Judgment Charging Estate
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-120.2 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-120.2
Section 19-3-120.2 Standards for Fiduciary Investment and Management
Status: in_force

(a) When investing, reinvesting, purchasing, acquiring, exchanging, selling and managing property for the benefit of another, a trustee, executor, administrator, guardian, conservator or other fiduciary, other than a trustee governed by Chapter 3B, shall act with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use to attain the purposes of the account. In making investment decisions, a fiduciary shall consider the role that the investment plays within the account’s overall portfolio of assets and may consider the general economic conditions, the anticipated tax consequences of the investment, the anticipated duration of the account and the needs of the beneficiaries of the account.

(b) The propriety of an investment decision is to be determined by what a fiduciary knew or should have known at the time of the decision about the inherent nature and expected performance of the investment, the attributes of the account portfolio, the general economy, and the needs and objectives of the beneficiaries of the account as they existed at the time of the investment decision.

(c) Any fiduciary acting under a governing instrument shall not be liable to anyone whose interests arise from such instrument for the fiduciary’s good faith reliance on the express provisions of such instrument. The standards set forth in this section may be expanded, restricted, or eliminated by express provisions in a governing instrument.

(d) In the absence of an express provision to the contrary in a governing instrument, a fiduciary may without liability continue to hold property received into an account at its inception or subsequently added to it or acquired pursuant to proper authority if and as long as the fiduciary, in the exercise of good faith and of reasonable prudence, may consider that retention to be in the best interest of the account or in furtherance of the goals of the governing instrument. Such property may include, among other things, stock in the fiduciary if a corporation, and stock in any corporation controlling, controlled by or under common control with the fiduciary.

(e) Nothing in this section shall abrogate or restrict the power of the appropriate court in a proper case to direct or permit a fiduciary to deviate from the terms of a governing instrument regarding the acquisition, investment, reinvestment, exchange, retention, sale or management of property.

(f) The provisions of this section shall apply to all fiduciary relations, other than trustee relations covered by Chapter 3B, now existing or hereafter created, but only to the fiduciary actions or inactions occurring after the effective date hereof. Effective January 1, 2007, the standards for fiduciary investment and management for trustees shall be governed by Chapter 3B instead of this section.
Ala. Code § 19-3-277 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-277
Section 19-3-277 Principal Comprising Animals
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3-172 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-172
Section 19-3-172 Sale of Land Devised and Held in Trust
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-40 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-40
Section 19-3-40 Sale of Real Estate; Notice to Creditors
Status: in_force

The trustee may make sale of any real estate or interest therein belonging to the trust estate, at public outcry to the highest bidder, after giving notice thereof by publication once a week for three successive weeks in a newspaper published in the county where the real estate is situated, or, if there be no such paper, by posting notice at the courthouse door for the same length of time; and of such sale the trustee must also give notice by mail, postage prepaid, to each creditor, in time to reach him 10 days before the day of sale. But nothing contained in this section shall prevent the assignee from exercising the powers of sale or other powers conferred by the deed of assignment, unless specially restrained from so doing by an order made in writing by the circuit judge and filed in the court.
Ala. Code § 19-3-325 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-325
Section 19-3-325 Concurrence of All Co-Trustees Required
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3E-8 — Alabama Code / Title 19 / Chapter 3E / Section 19-3E-8
Section 19-3E-8 Cessation of a Qualified Trustee and Successor
Status: in_force

(a)(1) If a person serving as a qualified trustee ceases to meet the requirements of a qualified trustee and there remains no trustee that meets the requirements of a qualified trustee, the person serving as qualified trustee is considered to have resigned as of the time of the cessation and the successor qualified trustee provided for in the trust instrument becomes a qualified trustee of the trust on the successor qualified trustee’s acceptance of trusteeship.

(2) In the absence of a successor qualified trustee provided for in the trust instrument, the court having jurisdiction, on petition of a qualified beneficiary, shall appoint a successor qualified trustee.

(b) A disposition that was a qualified disposition does not cease to be a qualified disposition as a result of a subsequent vacancy in the position of qualified trustee if a successor qualified trustee is appointed or a proceeding for the appointment of a successor qualified trustee is commenced within a reasonable time after a person with authority to appoint a qualified trustee or commence a proceeding to appoint a qualified trustee knows of the vacancy.
Ala. Code § 19-3A-410 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-410
Section 19-3A-410 Liquidating Assets
Status: in_force

(a) In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to Section 19-3A-409, natural resources subject to Section 19-3A-411, timber subject to Section 19-3A-412, an activity subject to Section 19-3A-414, an asset subject to Section 19-3A-415, or any asset for which the fiduciary establishes a reserve for depreciation under Section 19-3A-503.

(b) A fiduciary shall allocate to income ten percent (10%) of the receipts from a liquidating asset and the balance to principal.
Ala. Code § 19-3B-1302 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-1302
Section 19-3B-1302 Trust Void as to Creditors or Purchasers Without Notice
Status: in_force

No such trusts, whether implied by law or created or declared by the parties, can defeat the title of creditors or purchasers for a valuable consideration without notice.
Ala. Code § 19-3B-1303 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-1303
Section 19-3B-1303 Trust Estate Not Descendible Upon Death of Trustee
Status: in_force

Upon the death of a sole or surviving trustee of an express trust, the trust estate does not descend to his or her heirs or pass to his or her personal representatives.
Ala. Code § 19-3B-414 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-414
Section 19-3B-414 Modification or Termination of Uneconomic Trust
Status: in_force

(a) Subject to subsection (e), after notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than one hundred thousand dollars ($100,000) may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.

(b) The court may modify or terminate a trust or remove the trustee and appoint a different trustee if the court determines that the value of the trust property is insufficient to justify the cost of administration.

(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.

(d) This section does not apply to an easement for conservation or preservation.

(e)(1) The dollar amount provided in subsection (a) shall apply to any trust consisting of trust property during the 2023 calendar year.

(2)a. Beginning January 1, 2024, the dollar amount described in subsection (a) shall be increased or decreased if the Consumer Price Index (C.P.I.) for the calendar year immediately preceding the year of value determination exceeds or is less than the reference base index.

b. The amount of any increase or decrease shall be computed by multiplying each dollar amount by the percentage by which the C.P.I. for the calendar year immediately preceding the value determination exceeds or is less than the reference base index.

c. If any increase or decrease produced by the computation is not a multiple of one hundred dollars ($100), the increase or decrease shall either be rounded down if there is an increase, or rounded up if there is a decrease, to the next multiple of one hundred dollars ($100).

d. If the C.P.I. for the 2022 calendar year is changed by the Bureau of Labor Statistics, the reference base index shall be revised using the rebasing factor reported by the Bureau of Labor Statistics, or other comparable data if a rebasing factor is not reported.

e. On or before February 1, 2024, and on or before February 1 of each succeeding calendar year thereafter, the State Treasurer shall publish a cumulative list, beginning with the dollar amounts effective for value determination of a trust consisting of trust property for the 2023 calendar year, of the dollar amount as increased or decreased under this section.

f. As used in this section, the following terms have the following meanings:

1. CONSUMER PRICE INDEX or C.P.I. The Consumer Price Index for All Urban Consumers (CPI-U) reported by the Bureau of Labor Statistics of the United States Department of Labor or, if the index is discontinued, an equivalent index reported by a federal authority. If no such index is reported, the term means the substitute index chosen by the State Treasurer.

2. REFERENCE BASE INDEX. The C.P.I. for the 2022 calendar year.
Ala. Code § 19-3-327 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-327
Section 19-3-327 Applicability of Article
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-5-7 — Alabama Code / Title 19 / Chapter 5 / Section 19-5-7
Section 19-5-7 Allocation of Distributions from Separate Trusts
Status: in_force

Distributions provided for by the governing instrument, whether the original trust is divided into separate trusts under the provisions of Section 19-5-3, 19-5-5 or 19-5-6 hereof or the trusts are retained as separate trusts under the provisions of Section 19-5-4 or 19-5-5 hereof, may be made from either or both separate trusts in the absolute and uncontrolled discretion of the fiduciary; provided, however, in determining the total distributions, neither the division of a trust nor the retention as separate trusts shall result in the receipt by any beneficiary of a greater proportion of the total distributions than the beneficiary would have received if the trust or estate had not been so divided or retained separately.
Ala. Code § 19-3B-508 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-508
Section 19-3B-508 Qualified Trusts Under the Internal Revenue Code
Status: in_force

(a) As used in this section:

(1) ASSIGNMENT or ALIENATION, and any conjugation thereof, includes any anticipation, assignment at law or in equity, alienation, attachment, garnishment, levy, execution, or other legal or equitable process. The term includes: (i) any arrangement providing for the payment to the employer or other sponsor of such plan of benefits that otherwise would be due the participant under the plan; (ii) any direct or indirect arrangement, whether revocable or irrevocable, whereby any person acquires from a participant or beneficiary of such plan a right or interest enforceable against the plan in, or to, all or any part of a plan benefit which is, or may become, payable to the participant or beneficiary; (iii) any attachment, execution, seizure, or the like, or under any form of legal process whatsoever; and (iv) the operation of any bankruptcy or insolvency laws under 11 U.S.C. § 522(b) as from time to time amended. Notwithstanding the foregoing, the term does not include those items excluded from the definition by Treasury Regulations § 1.401(a)-13(c)(2).

(2) CODE means the Internal Revenue Code of 1986, as from time to time amended, or as at any time superseded by reenactment, recodification, or adoption of any other similar revenue law. Reference to specific sections of the code shall include references to their successor sections as a result of renumbering or recodification at any future date.

(3) QUALIFIED ROLLOVER CONTRIBUTION means any of the following:

a. Amounts qualifying as nontaxable rollover contributions or direct transfers under Section 402(a)(5), 403(a)(4), 403(b)(8), or 403(d)(3) of the code before January 1, 1993.

b. Amounts qualifying as nontaxable rollover contributions or direct transfers under Sections 402(c), 402(e)(6), 402(f), 403(a)(4), 403(a)(5), 403(b)(8), 403(b)(10), or 408(d)(3) of the code on or after January 1, 1993.

c. Amounts treated as qualified rollover contributions under Section 408A of the code.

(4) QUALIFIED TRUST includes all trusts created or organized under Section 401(a) of the code, including, but not limited to, a trust forming part of a qualified pension plan, qualified stock bonus plan, or qualified profit sharing plan and includes any trust that would not be qualified but for this section, any trust that has received a favorable determination letter from the Internal Revenue Service of the United States Department of Treasury to the effect that such trust is, or will be upon the satisfaction of certain administrative conditions, a “qualified trust” under Section 401(a) of the code; any qualified annuity plan described in the code, including an individual retirement annuity and individual retirement account (IRA), rollover individual retirement account, an individual retirement plan defined as a Roth IRA under Section 408A of the code; simplified employee pension (SEP), savings incentive match plan for employees (SIMPLE IRA), or other individual retirement plan described in Section 408 of the code; a retirement bond described in Section 409 of the code, as in effect prior to January 1, 1984, any governmental plan described in Section 414(d) of the code; health savings accounts and church plans described in Section 414(e) of the code; a tax credit employee stock ownership plan described in Section 409 of the code; an eligible deferred compensation plan described in Section 457(b) of the code; and any other plan, contract, annuity, account, or arrangement which satisfies the requirements of Sections 401, 403(a), 404(a)(2), 408, 408A, 409, 414(d), 414(e), or 457 of the code.

(5) TREASURY REGULATION means a valid regulation of the United States Department of Treasury codified at Title 26 of the Code of Federal Regulations. References to specific Treasury Regulations include references to amendments and future reenactments or recodifications of such regulations, regardless of how designated.

(b) Except where stated otherwise in this section, benefits provided under a plan, contract, annuity, account, or arrangement which includes or constitutes a qualified trust may not be assigned or alienated, voluntarily or involuntarily, and shall be exempt from the operation of any bankruptcy or insolvency laws under 11 U.S.C. § 522(b), as from time to time amended. This subsection may not be waived by a participant or beneficiary of any qualified plan.

(c) Subsection (b) shall not apply to taxes owed to any local, state, or federal taxing authority, to a qualified domestic relations order as determined in accordance with the procedures for such determination set forth in Section 414(p) of the code and the related provisions of the Employee Retirement Income Security Act of 1974, as from time to time amended, to contributions to a qualified trust that exceed the amounts allowed under the applicable provisions of the code and any earnings thereon, unless otherwise exempt by law, or to criminal restitution orders enforced as civil judgments.

(d) The securing of a loan made to a participant or beneficiary of such a plan shall not be treated as an assignment or alienation under subsection (b) if such loan is secured by the participant’s accrued nonforfeitable benefit under the plan, contract, annuity, account, or arrangement and is exempt from the tax imposed by Section 4975 of the code by reason of Section 4975(d)(1) of the code.

(e) The protections afforded by subsection (b) shall apply to any amounts of money or other assets distributed from a qualified trust if such distribution constitutes a qualified rollover contribution.

(f) Money or other assets distributed from a qualified trust subject to restraint on assignment or alienation of benefits under subsection (b) are not subject to assignment or alienation for the greater of 60 days after the date of distribution or such additional period of time allowed by the Internal Revenue Service to effectuate a valid rollover if the contribution of such money or other assets constitutes a qualified rollover contribution.

(g) Any money or other assets in a qualified trust subject to restraint on assignment or alienation of benefits under subsection (b) cease to be exempt after the account owner’s death, except with respect to any money or other assets in a qualified trust owned or controlled by the surviving spouse of the deceased account owner.

(h) This section does not apply to the Employees’ Retirement System of Alabama, Teachers’ Retirement System of Alabama, and the Judicial Retirement Fund of Alabama.
Ala. Code § 19-3-211 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-211
Section 19-3-211 Removal - Grounds
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-1A-6 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-6
Section 19-1A-6 Procedure for Disclosing Digital Assets
Status: in_force

(a) When disclosing digital assets of a user under this chapter, the custodian may at its sole discretion:

(1) grant a fiduciary or designated recipient full access to the user’s account;

(2) grant a fiduciary or designated recipient partial access to the user’s account sufficient to perform the tasks with which the fiduciary or designated recipient is charged; or

(3) provide a fiduciary or designated recipient a copy in a record of any digital asset that, on the date the custodian received the request for disclosure, the user could have accessed if the user were alive and had full capacity and access to the account.

(b) A custodian may assess a reasonable administrative charge for the cost of disclosing digital assets under this chapter.

(c) A custodian need not disclose under this chapter a digital asset deleted by a user.

(d) If a user directs or a fiduciary requests a custodian to disclose under this chapter some, but not all, of the user’s digital assets, the custodian need not disclose the assets if segregation of the assets would impose an undue burden on the custodian. If the custodian believes the direction or request imposes an undue burden, the custodian or fiduciary may seek an order from the court to disclose:

(1) a subset limited by date of the user’s digital assets;

(2) all of the user’s digital assets to the fiduciary or designated recipient;

(3) none of the user’s digital assets; or

(4) all of the user’s digital assets to the court for review in camera.
Ala. Code § 19-3B-302 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-302
Section 19-3B-302 Representation by Holder of Power of Appointment
Status: in_force

(a) The holder of a lifetime power to appoint to oneself may represent and bind all persons whose interests are subject to the power, including but without limitation, permissible appointees and takers in default.

(b) To the extent that there is no conflict of interest between the holder of a power of appointment, other than a power enumerated in subsection (a), and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power.
Ala. Code § 19-3E-1 — Alabama Code / Title 19 / Chapter 3E / Section 19-3E-1
Section 19-3E-1 Short Title
Status: in_force

This chapter shall be known and may be cited as the Alabama Qualified Dispositions in Trust Act.
Ala. Code § 19-3-279 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-279
Section 19-3-279 Principal Subject to Depletion
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3-38 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-38
Section 19-3-38 Admissibility of Evidence at Hearings; Exceptions; Appeals
Status: in_force

Upon a hearing before the register or clerk under any of the provisions of this article, any competent legal evidence, written or oral, may be received. All such evidence must be noted and oral testimony reduced to writing by the register or clerk. Within 10 days thereafter, either party may file exceptions to the action or conclusion of the register or clerk, and may have the same reviewed by the circuit judge upon 10 days’ notice to the other party, such review to be without any presumption in favor of the correctness of the action or conclusion of the register or clerk. From the decision of the circuit judge thereon an appeal lies to the court of civil appeals or the supreme court within 42 days.
Ala. Code § 19-3-24 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-24
Section 19-3-24 Duty of Trustee to Make Inventory; Filing of Copies; Supplemental Inventories
Status: in_force

It is the duty of the trustee of an express trust created for the payment of debts, within 20 days after entering upon the execution of such trust, to make an inventory of the entire trust property so far as the same has come to his possession or knowledge, describing the real estate and grouping and classifying the personal property in as brief and comprehensive manner as may be consistent with its proper identification and appraisement, and stating the amount and character of all choses in action, with the names of debtors, belonging to the trust. In reducing such inventory to writing, the trustee must leave appropriate spaces opposite each article or item, with proper caption, in which spaces the appraised value may be inserted by the appraisers. The trustee must, within the time above stipulated, file, in the office of the register or clerk of the county in which the most valuable portion of the trust property may be, two copies of such inventory, each of which shall be duly verified by his affidavit; and if there be property in more than one county, a separate inventory of the property in each county must be made and filed. Supplemental inventories may be made in like manner.
Ala. Code § 19-3-125 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-125
Section 19-3-125 Life, Endowment, or Annuity Contracts
Status: reserved

In addition to any other investment now permitted by law, a guardian or trustee may invest the funds of his ward or of the beneficiary of the trust in life, endowment or annuity contracts of legal reserve life insurance companies duly qualified and authorized to write such business in the State of Alabama; provided, however, that the annual premium or premiums on such contracts purchased by such guardian or trustee shall not exceed 25 percent of the income of the ward or the beneficiary for any calendar year preceding the date of such purchase. The contract must contain the following options after it has been in force for three years or less: a cash surrender value option, a paid-up insurance or endowment option, and an extended insurance or endowment option. Such contract may be issued on the life or lives of the ward or wards, or beneficiary or beneficiaries of the trust or upon the life or lives of persons in whose life or lives such ward or beneficiary of the trust has an insurable interest. The proceeds or avails of such contract shall be the sole property of the person or persons whose funds are invested therein. The contract or policy form may provide reasonable forfeiture for nonpayment of premiums and must be a form of contract which has been approved by the Commissioner of Insurance of the State of Alabama. Whether such contract so specifically provides or not, the guardian or trustee shall have the right without order of court to exercise for the use of the ward or beneficiary of the trust, any option contained in such contract; except, that the guardian or trustee shall not have the right to borrow on security of said policy or its proceeds unless authorized to do so by order of the court having jurisdiction of the guardianship or trust.

The power given in this section is in addition to and not in derogation of any power of investment given a guardian or trustee under existing law, but to the extent that any statute now in force is in conflict herewith, the same shall be and is hereby repealed.
Ala. Code § 19-3A-503 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-503
Section 19-3A-503 Transfers from Income to Principal for Depreciation
Status: in_force

(a) In this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.

(b) A fiduciary may transfer from income to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation in any of the following circumstances:

(1) As to the portion of a. real property used or available for use by a beneficiary as a residence or b. tangible personal property held or made available for the personal use or enjoyment of a beneficiary;

(2) During the administration of a decedent’s estate; or

(3) If the fiduciary is accounting separately for the business or activity in which the asset is used, pursuant to Section 19-3A-403.

(c) An amount transferred from income to principal need not be held as a separate fund.
Ala. Code § 19-3B-506 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-506
Section 19-3B-506 Overdue Distribution
Status: in_force

(a) In this section, “mandatory distribution” means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term excludes a distribution subject to the exercise of the trustee’s discretion regardless of whether the terms of the trust (i) include a support or other standard to guide the trustee in making distribution decisions or (ii) provide that the trustee “may” or “shall” make discretionary distributions, including distributions pursuant to a support or other standard.

(b) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may compel a mandatory distribution of income or principal to a beneficiary, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the mandated distribution date.
Ala. Code § 19-3-61 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-61
Section 19-3-61 Establishment; Lawful Purposes
Status: in_force

A business trust may be established by a declaration of trust, duly executed by one or more trustees, for any lawful purpose including, but not limited to, acquiring, managing, improving, leasing, dealing in, selling or otherwise alienating, mortgaging or otherwise incumbering real and personal property of all kinds and descriptions, including dealing in, purchasing, holding, selling and exchanging stocks, bonds, mortgages, deeds of trust and other securities of all kinds and descriptions; receiving the income, dividends, rents, profits and returns therefrom, and investing the same or distributing the same to the beneficial owners of the trust in accordance with the terms of the declaration of trust.
Ala. Code § 19-3B-409 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-409
Section 19-3B-409 Noncharitable Trust Without Ascertainable Beneficiary
Status: in_force

Except as otherwise provided in Section 19-3B-408 or by another statute, the following rules apply:

(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than 21 years.

(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.

(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor’s successors in interest.
Ala. Code § 19-3D-6 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-6
Section 19-3D-6 Reasonable Reliance
Status: in_force

A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under this chapter, laws of this state other than this chapter, or the law of another jurisdiction is not liable to any person for any action or failure to act as a result of the reliance.
Ala. Code § 19-3B-410 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-410
Section 19-3B-410 Modification or Termination of Trust; Proceedings for Approval or Disapproval
Status: in_force

(a) In addition to the methods of termination prescribed by Sections 19-3B-411 through 19-3B-414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.

(b) A proceeding to approve or disapprove a proposed modification or termination under Sections 19-3B-411 through 19-3B-416, or trust combination or division under Section 19-3B-417, may be commenced by a trustee or beneficiary. The settlor of a charitable trust may maintain a proceeding to modify the trust under Section 19-3B-413.
Ala. Code § 19-3D-9 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-9
Section 19-3D-9 Court Involvement
Status: in_force

(a) On application of an authorized fiduciary, a person entitled to notice under Section 19-3D-7(c), a beneficiary, or with respect to a charitable interest that is not entirely held by or for the benefit of one or more identified and existing charitable organizations, the Attorney General or other person that has standing to enforce the charitable interest, the court may:

(1) provide instructions to the authorized fiduciary regarding whether a proposed exercise of the decanting power is permitted under this chapter and consistent with the fiduciary duties of the authorized fiduciary;

(2) appoint a special fiduciary and authorize the special fiduciary to determine whether the decanting power should be exercised under this chapter and to exercise the decanting power;

(3) approve an exercise of the decanting power;

(4) subject to the limitations set forth in subsection (c), determine that a proposed or attempted exercise of the decanting power is ineffective because:

(A) after applying Section 19-3D-22, the proposed or attempted exercise does not or did not comply with this chapter; or

(B) the proposed or attempted exercise would be or was an abuse of the fiduciary’s discretion or a breach of fiduciary duty;

(5) determine the extent to which Section 19-3D-22 applies to a prior exercise of the decanting power;

(6) provide instructions to the trustee regarding the application of Section 19-3D-22 to a prior exercise of the decanting power; or

(7) order other relief to carry out the purposes of this chapter.

(b) On application of an authorized fiduciary, the court may approve:

(1) an increase in the fiduciary’s compensation under Section 19-3D-16; or

(2) a modification under Section 19-3D-18 of a provision granting a person the right to remove or replace the fiduciary.

(c) A proceeding under subsection (a)(4) may not be commenced by a person entitled to notice under Section 19-3D-7(c), or by a beneficiary, unless such proceeding is commenced within six months from the day notice is given under Section 19-3D-7(a). Failure to receive notice shall not extend the time by which the proceeding must be commenced if the authorized fiduciary acted with reasonable diligence to comply with the requirements of Section 19-3D-7(c).
Ala. Code § 19-3A-504 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-504
Section 19-3A-504 Transfers from Income to Reimburse Principal
Status: in_force

(a) If a fiduciary makes or expects to make a principal disbursement described in this section, then the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.

(b) Principal disbursements to which subsection (a) applies include the following, but only to the extent that the fiduciary has not been and does not expect to be reimbursed by a third party:

(1) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;

(2) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;

(3) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker’s commissions; and

(4) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments.

(c) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, then a fiduciary may continue to transfer amounts from income to principal as provided in subsection (a).
Ala. Code § 19-3-282 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-282
Section 19-3-282 Expenses - Nontrust Estates
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3-276 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-276
Section 19-3-276 Principal Used in Business
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3B-507 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-507
Section 19-3B-507 Personal Obligations of Trustee
Status: in_force

Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
Ala. Code § 19-3-37 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-37
Section 19-3-37 Examination and Auditing of Account; Judgment
Status: in_force

Upon the day so appointed, or any day to which the hearing may be continued, the register or clerk must proceed to examine and audit the account; and upon such auditing, the assignor or any creditor or party in interest, his representative or transferee, may move the register or clerk to charge the trustee with sums other than those with which he has charged himself, or may object to the allowance of any item for which he claims credit; and such matters must be heard and the account stated and passed upon by the register or clerk and distribution made and judgment to creditors as in insolvent estates administered in the court of probate; and after deducting the costs and expenses of administration, including five percent commissions to the trustee on the amount of money with which he is charged, and the allowance of reasonable charges for the preparation of the deed of assignment, and after the discharge of all liens or claims having priority, the register or clerk must enter judgment to each creditor whose claim has been allowed, his proportion of such money, reserving in the hands of the trustee a ratable proportion for such claims as may be then contested and undecided; and if no appeal is taken, as provided in Section 19-3-38, and prosecuted to effect, the register or clerk may issue execution upon such judgments, against the trustee, and the sureties on his bond, if he has given bond. Upon application to the register or clerk by the assignee or any party in interest, such compensation of the assignee may be increased or diminished by the register or clerk for good cause shown.
Ala. Code § 19-3A-608 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-608
Section 19-3A-608 Application of Alabama Uniform Trust Code
Status: in_force

The provisions of the Alabama Uniform Trust Code apply to the Alabama Principal and Income Act, except to the extent the provisions are inconsistent with the provisions of this chapter.
Ala. Code § 19-3B-815 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-815
Section 19-3B-815 General Powers of Trustee
Status: in_force

(a) A trustee, without authorization by the court, may exercise:

(1) powers conferred by the terms of the trust; and

(2) except as limited by the terms of the trust:

(A) all powers over the trust property which an unmarried competent owner has over individually owned property;

(B) any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and

(C) any other powers conferred by this chapter.

(b) The exercise of a power is subject to the fiduciary duties prescribed by this article.
Ala. Code § 19-3-65 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-65
Section 19-3-65 Duration of Business Trust; Rules Against Perpetuities and Restraint of Alienation Not Violated
Status: in_force

A business trust shall not be deemed invalid as violating the rule against perpetuities or the law against suspension of the powers of alienation. Such trust may continue for such time as may be necessary to accomplish the purposes for which it may be created, provided the declaration of trust contains a provision that such trust may be terminated at any time by action of the trustees or by the vote of a specified percentage in interest of the beneficial owners thereof as set forth in the declaration of trust.
Ala. Code § 19-3-273 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-273
Section 19-3-273 Apportionment of Income
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3-272 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-272
Section 19-3-272 Income and Principal; Disposition
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3B-402 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-402
Section 19-3B-402 Requirements for Creation
Status: in_force

(a) A trust is created only if:

(1) the settlor has capacity to create a trust;

(2) the settlor indicates an intention to create the trust;

(3) the trust has a definite beneficiary or is:

(A) a charitable trust;

(B) a trust for the care of an animal, as provided in Section 19-3B-408; or

(C) a trust for a noncharitable purpose, as provided in Section 19-3B-409;

(4) the trustee has duties to perform; and

(5) the same person is not the sole trustee and sole beneficiary.

(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, then the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.
Ala. Code § 19-3-29 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-29
Section 19-3-29 Presentation of Claims; Verification; Receipt
Status: in_force

All claims against the trust estate must be presented by or on the day specified in such order and notice, by filing the claim, or a statement thereof, in the office of the register or clerk, verified as claims against the estate of a decedent are required to be verified, before a notary public or other officer authorized to take and certify affidavits within or beyond the state; and all claims not so presented are precluded from sharing in the assignment or participating in any dividend that may be made from the trust estate, until all presented and allowed claims shall have been paid in full. But when a claim has been so presented prior to giving of such notice, a second presentation is not necessary. Any defect or insufficiency in the affidavit may be remedied by amendment at any time. The register or clerk must give to the creditor, his agent or attorney a receipt for his claim, and must indorse thereon the date of filing and sign his name thereto.
Ala. Code § 19-3D-28 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-28
Section 19-3D-28 Uniformity of Application and Construction
Status: in_force

In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Ala. Code § 19-3-231 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-231
Section 19-3-231 Notice of Hearing
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-1A-5 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-5
Section 19-1A-5 Terms-of-Service Agreement
Status: in_force

(a) This chapter does not change or impair a right of a custodian or a user under a terms-of-service agreement to access and use digital assets of the user.

(b) This chapter does not give a fiduciary or designated recipient any new or expanded rights other than those held by the user for whom, or for whose estate, the fiduciary or designated recipient acts or represents.

(c) A fiduciary’s or a designated recipient’s access to digital assets may be modified or eliminated by a user, by federal law, or by a terms-of-service agreement if the user has not provided direction under Section 19-1A-4.
Ala. Code § 19-3-5 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-5
Section 19-3-5 Notice of Settlement
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3A-502 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-502
Section 19-3A-502 Disbursements from Principal
Status: in_force

(a) A trustee shall make the following disbursements from principal:

(1) An amount, not to exceed fifty percent (50%), of the disbursements described in Section 19-3A-501(a) and Section 19-3A-501(b);

(2) All of the trustee’s compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;

(3) Payments on the principal of a trust debt;

(4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;

(5) Premiums paid on a policy of insurance not described in Section 19-3A-501(d), of which the trust is the owner and beneficiary; and

(6) Estate, inheritance, and other transfer taxes, including penalties thereon, apportioned to the trust which carries the name of the estate.

(b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, then the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.

(c) A trustee may charge all disbursements related to environmental matters to principal or income, as provided by applicable law.
Ala. Code § 19-3A-413 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-413
Section 19-3A-413 Property Not Productive of Income
Status: in_force

(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the fiduciary transfers from principal to income pursuant to Section 19-3A-104, if applicable, and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, then the spouse may require the fiduciary (1) to make property productive of income, (2) to convert property within a reasonable time or (3) to exercise the power conferred by Section 19-3A-104(a), if applicable. The fiduciary may decide which action or combination of actions to take.

(b) In cases not governed by subsection (a), a fiduciary shall allocate to principal the proceeds from the sale or other disposition of an asset without regard to the amount of income the asset produces during any accounting period.
Ala. Code § 19-3-320 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-320
Section 19-3-320 Definitions
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-271 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-271
Section 19-3-271 Applicability of Article; Powers of Settlor
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3C-1 — Alabama Code / Title 19 / Chapter 3C / Section 19-3C-1
Section 19-3C-1 Short Title
Status: in_force

This chapter may be cited as the Alabama Uniform Prudent Management of Institutional Funds Act.
Ala. Code § 19-3-300 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-300
Section 19-3-300 Trustee Not to Engage in Certain Acts Subjecting Trust to Federal Taxation
Status: in_force

Notwithstanding any provision to the contrary in the governing instrument or under any other law of this state and except as otherwise provided by judgment of a court or by a provision of the governing instrument, which in either case is entered or made after October 1, 1971, and expressly limits the applicability of this article, the trustee of a trust, whenever created, which is or is treated as a private foundation as defined in Section 509 of the Internal Revenue Code of 1954, a charitable trust as defined in Section 4947(a)(1) of the Internal Revenue Code of 1954, or a split-interest trust as defined in Section 4947(a)(2) of the Internal Revenue Code of 1954, during the period it is or is treated as a private foundation, charitable trust or split-interest trust as so defined:

(1) Shall not engage in any act of self-dealing as defined in Section 4941(d) thereof;

(2) Shall distribute for each taxable year not less than such amounts at such time and in such manner as not to subject the trust to the tax on undistributed income imposed by Section 4942 thereof;

(3) Shall not, if Section 4943 thereof is applicable, retain any excess business holdings as defined in subsection (c) of that section beyond the period permitted by that section;

(4) Shall not make any investment in such manner as to subject the trust to tax under Section 4944 thereof; and

(5) Shall not make any taxable expenditure as defined in Section 4945(d) thereof.
Ala. Code § 19-3B-709 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-709
Section 19-3B-709 Reimbursement of Expenses
Status: in_force

(a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate for:

(1) expenses that were properly incurred in the administration of the trust, including the defense or prosecution of any action, whether successful or not, unless the trustee is determined to have willfully or wantonly committed a material breach of the trust; and

(2) to the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.

(b) An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
Ala. Code § 19-3-250 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-250
Section 19-3-250 Power of Circuit Court to Fill Vacancy
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-8 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-8
Section 19-3-8 Execution of Proxies by Fiduciary Holding Corporate Stocks
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-326 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-326
Section 19-3-326 Payment Out of Trust Estate of Expenses of Trustee in Defending or Prosecuting Proceedings in Good Faith
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-278 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-278
Section 19-3-278 Disposition of Natural Resources
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3B-705 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-705
Section 19-3B-705 Resignation of Trustee
Status: in_force

(a) A trustee may resign:

(1) upon at least 30 days’ notice to the qualified beneficiaries, the settlor, if living, and all co-trustees; or

(2) with the approval of the court.

(b) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.

(c) Any liability of a resigning trustee or of any sureties on the trustee’s bond for acts or omissions of the trustee is not discharged or affected by the trustee’s resignation.
Ala. Code § 19-3-30 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-30
Section 19-3-30 Claims Docket
Status: in_force

The register or clerk must keep a docket in which he must enter each claim, showing under appropriate captions, the name and address of the claimant, the amount and character of his claim, when due, by whom certified and when filed, with appropriate spaces for the insertion of the amount of each claim allowed and the amount of the dividend thereon at each distribution of the trust estate.
Ala. Code § 19-3D-13 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-13
Section 19-3D-13 Trust for Beneficiary with Disability
Status: in_force

(a) In this section the following terms have the following meanings:

(1) BENEFICIARY WITH A DISABILITY. A beneficiary of a first trust who the authorized fiduciary believes may qualify for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits or is an individual who has been adjudicated incompetent or incapacitated.

(2) GOVERNMENTAL BENEFITS. Financial aid or services from a state, federal, or other public agency.

(3) SPECIAL-NEEDS FIDUCIARY. With respect to a trust that has a beneficiary with a disability:

(A) a trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the principal of a first trust to one or more current beneficiaries;

(B) if no trustee or fiduciary has discretion under subparagraph (A), a trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the income of the first trust to one or more current beneficiaries; or

(C) if no trustee or fiduciary has discretion under subparagraphs (A) and (B), a trustee or other fiduciary, other than a settlor, that is required to distribute part or all of the income or principal of the first trust to one or more current beneficiaries.

(4) SPECIAL-NEEDS TRUST. A trust the trustee believes would not be considered a resource for purposes of determining whether a beneficiary with a disability is eligible for governmental benefits.

(b) A special-needs fiduciary may exercise the decanting power under Section 19-3D-11 over the principal of a first trust as if the fiduciary had authority to distribute principal to a beneficiary with a disability subject to expanded distributive discretion if:

(1) a second trust is a special-needs trust that benefits the beneficiary with a disability; and

(2) the special-needs fiduciary determines that exercise of the decanting power will further the purposes of the first trust.

(c) In an exercise of the decanting power under this section, the following rules apply:

(1) Notwithstanding Section 19-3D-11(c)(2), the interest in the second trust of a beneficiary with a disability may:

(A) be a pooled trust as defined by Medicaid law for the benefit of the beneficiary with a disability under 42 U.S.C. Section 1396p(d)(4)(C), as amended; or

(B) contain payback provisions complying with reimbursement requirements of Medicaid law under 42 U.S.C. Section 1396p(d)(4)(A), as amended.

(2) Section 19-3D-11(c)(3) does not apply to the interests of the beneficiary with a disability.

(3) Except as affected by any change to the interests of the beneficiary with a disability, the second trust, or if there are two or more second trusts, the second trusts in the aggregate, must grant each other beneficiary of the first trust beneficial interests in the second trusts which are substantially similar to the beneficiary’s beneficial interests in the first trust.
Ala. Code § 19-1A-15 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-15
Section 19-1A-15 Fiduciary Duty and Authority
Status: in_force

(a) The legal duties imposed on a fiduciary charged with managing tangible property apply to the management of digital assets, including:

(1) the duty of care;

(2) the duty of loyalty; and

(3) the duty of confidentiality.

(b) A fiduciary’s or a designated recipient’s authority with respect to a digital asset of a user:

(1) except as otherwise provided in Section 19-1A-4, is subject to the applicable terms of service;

(2) is subject to other applicable law, including copyright law;

(3) in the case of a fiduciary, is limited by the scope of the fiduciary’s duties; and

(4) may not be used to impersonate the user.

(c) A fiduciary with authority over the property of a decedent, protected person, principal, or settlor has the right to access any digital asset in which the decedent, protected person, principal, or settlor had a right or interest and that is not held by a custodian or subject to a terms-of-service agreement.

(d) A fiduciary acting within the scope of the fiduciary’s duties is an authorized user of the property of the decedent, protected person, principal, or settlor for the purpose of applicable computer-fraud and unauthorized-computer-access laws, including this state’s law on unauthorized computer access.

(e) A fiduciary with authority over the tangible, personal property of a decedent, protected person, principal, or settlor:

(1) has the right to access the property and any digital asset stored in it; and

(2) is an authorized user for the purpose of computer-fraud and unauthorized-computer-access laws, including Article 5A of Chapter 8, Title 13A, 18 U.S.C. Section 2701 et seq., and 47 U.S.C. Section 222.

(f) A custodian may disclose information in an account to a fiduciary of the user when the information is required to terminate an account used to access digital assets licensed to the user.

(g) A fiduciary of a user may request a custodian to terminate the user’s account. A request for termination must be in writing, in either physical or electronic form, and accompanied by:

(1) if the user is deceased, a copy of the death certificate of the user;

(2) a copy of the letters testamentary, letters of administration, court order, power of attorney, or trust giving the fiduciary authority over the account; and

(3) if requested by the custodian:

(A) a number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user’s account;

(B) evidence linking the account to the user; or

(C) a finding by the court that the user had a specific account with the custodian, identifiable by the information specified in subparagraph (A).
Ala. Code § 19-3B-111 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-111
Section 19-3B-111 Nonjudicial Settlement Agreements
Status: in_force

(a) For purposes of this section, “interested persons” means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court.

(b) Except as otherwise provided in subsection (c), interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust.

(c) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this chapter or other applicable law.

(d) Matters that may be resolved by a nonjudicial settlement agreement include:

(1) the interpretation or construction of the terms of the trust;

(2) the approval of a trustee’s report or accounting;

(3) direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power;

(4) the resignation or appointment of a trustee and the determination of a trustee’s compensation;

(5) transfer of a trust’s principal place of administration;

(6) liability of a trustee for an action relating to the trust; and

(7) partial or final settlements.

(e) Any interested person may request the court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in Article 3 was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.
Ala. Code § 19-4-22 — Alabama Code / Title 19 / Chapter 4 / Section 19-4-22
Section 19-4-22 Applicability of Provisions of Article
Status: in_force

This article shall apply to all fiduciary accounts now in existence or hereafter established regardless of the date of the governing instrument or court order under which the bank is acting.
Ala. Code § 19-4-21 — Alabama Code / Title 19 / Chapter 4 / Section 19-4-21
Section 19-4-21 Holding in Bulk of Securities Constituting Assets of Different Fiduciary Accounts Authorized; Registration of Securities; Maintenance of Records as to Fiduciary Accounts; Rules and Regulations Governing Banks; Certification of Securities Held for Fiduciary Accounts
Status: in_force

(a) Notwithstanding any other provision of law to the contrary, any bank holding securities as a fiduciary, as a cofiduciary or as a custodian or agent for another fiduciary or fiduciaries is authorized, in the absence of specific provision to the contrary in the governing instrument or court order under which the bank is acting, to hold such securities in a manner such that, without certification as to ownership attached, certificates representing securities of the same class of the same issuer and from time to time constituting assets of different fiduciary accounts are held in bulk, including, to the extent feasible, the merging of certificates of smaller denominations into one or more certificates of larger denominations. In the event the bank holds securities as a cofiduciary, the bank before acting under the authority contained in this section must have the written consent of its cofiduciary, who is hereby authorized to give such consent.

(b) Securities held in the manner authorized by this section may be registered in the name of the bank’s nominee.

(c) When acting under the authority contained in this section, the records of the bank shall at all times show the fiduciary accounts for which such securities are held and the ownership of such securities in each fiduciary account.

(d) A bank, when acting under the authority contained in this section, shall be subject to such rules and regulations as, in the case of banks or trust companies organized and existing under the laws of Alabama, the Superintendent of Banks and, in the case of national banking associations, the Comptroller of the Currency, may from time to time issue.

(e) A bank so acting shall, upon demand by any person to whom it has a duty to account with respect to a fiduciary account, certify in writing the securities held by it for that fiduciary account.
Ala. Code § 19-3D-2 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-2
Section 19-3D-2 Definitions
Status: in_force

In this chapter the following terms have the following meanings:

(1) APPOINTIVE PROPERTY. The property or property interest subject to a power of appointment.

(2) ASCERTAINABLE STANDARD. A standard relating to an individual’s health, education, support, or maintenance within the meaning of 26 U.S.C. Section 2041(b)(1)(A), as amended, or 26 U.S.C. Section 2514(c)(1), as amended, and any applicable regulations.

(3) AUTHORIZED FIDUCIARY. (A) A trustee or other fiduciary, other than a settlor, that has the discretion to distribute or direct a trustee to distribute part or all of the principal of the first trust to one or more current beneficiaries;

(B) a special fiduciary appointed under Section 19-3D-9; or

(C) a special-needs fiduciary under Section 19-3D-13.

(4) BENEFICIARY. A person that:

(A) has a present or future, vested or contingent, beneficial interest in a trust;

(B) holds a power of appointment over trust property; or

(C) is an identified charitable organization that will or may receive distributions under the terms of the trust.

(5) CHARITABLE INTEREST. An interest in a trust which:

(A) is held by an identified charitable organization and makes the organization a qualified beneficiary;

(B) benefits only charitable organizations and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary; or

(C) is held solely for charitable purposes and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary.

(6) CHARITABLE ORGANIZATION. (A) a person, other than an individual, organized and operated exclusively for charitable purposes; or

(B) a government or governmental subdivision, agency, or instrumentality, to the extent it holds funds exclusively for a charitable purpose.

(7) CHARITABLE PURPOSE. The relief of poverty, the advancement of education or religion, the promotion of health, a municipal or other governmental purpose, or another purpose, the achievement of which is beneficial to the community.

(8) COURT. The court in this state having jurisdiction in matters relating to trusts.

(9) CURRENT BENEFICIARY. A beneficiary that on the date the beneficiary’s qualification is determined is a distributee or permissible distributee of trust income or principal. The term includes the holder of a presently exercisable general power of appointment but does not include a person that is a beneficiary only because the person holds any other power of appointment.

(10) DECANTING POWER. The power of an authorized fiduciary under this chapter to distribute property of a first trust to one or more second trusts or to modify the terms of the first trust.

(11) EXPANDED DISTRIBUTIVE DISCRETION. A discretionary power of distribution that is not limited to an ascertainable standard or a reasonably definite standard.

(12) FIRST TRUST. A trust over which an authorized fiduciary may exercise the decanting power.

(13) FIRST-TRUST INSTRUMENT. The trust instrument for a first trust.

(14) GENERAL POWER OF APPOINTMENT. A power of appointment exercisable in favor of a powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor of the powerholder’s estate.

(15) JURISDICTION. With respect to a geographic area, includes a state or country.

(16) PERSON. An individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.

(17) POWER OF APPOINTMENT. A power that enables a powerholder acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over the appointive property. The term does not include a power of attorney.

(18) POWERHOLDER. A person in which a donor creates a power of appointment.

(19) PRESENTLY EXERCISABLE POWER OF APPOINTMENT. A power of appointment exercisable by the powerholder at the relevant time. The term:

(A) includes a power of appointment exercisable only after the occurrence of a specified event, the satisfaction of an ascertainable standard, or the passage of a specified time only after:

(i) the occurrence of the specified event;

(ii) the satisfaction of the ascertainable standard; or

(iii) the passage of the specified time; and

(B) does not include a power exercisable only at the powerholder’s death.

(20) QUALIFIED BENEFICIARY. A beneficiary that on the date the beneficiary’s qualification is determined:

(A) to be a distributee or permissible distributee of trust income or principal;

(B) would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in subparagraph (A) terminated on that date, but the termination of those interests would not cause the trust to terminate; or

(C) would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.

(21) REASONABLY DEFINITE STANDARD. A clearly measurable standard under which a holder of a power of distribution is legally accountable within the meaning of 26 U.S.C. Section 674(b)(5)(A), as amended, and any applicable regulations.

(22) RECORD. Information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(23) SECOND TRUST. (A) a first trust after modification under this chapter; or

(B) a trust to which a distribution of property from a first trust is or may be made under this chapter.

(24) SECOND-TRUST INSTRUMENT. The trust instrument for a second trust.

(25) SETTLOR. Except as otherwise provided in Section 19-3D-25, a person, including a testator, that creates or contributes property to a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to the person’s contribution except to the extent another person has power to revoke or withdraw that portion.

(26) SIGN. With present intent to authenticate or adopt a record:

(A) to execute or adopt a tangible symbol; or

(B) to attach to or logically associate with the record an electronic symbol, sound, or process.

(27) STATE. A state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

(28) TERMS OF THE TRUST. The manifestation of the settlor’s intent regarding a trust’s provisions as expressed in the trust instrument, as may be established by other evidence that would be admissible in a judicial proceeding, or as may be established by court order or nonjudicial settlement agreement.

(29) TRUST INSTRUMENT. A record executed by the settlor to create a trust or by any person to create a second trust which contains some or all of the terms of the trust, including any amendments.
Ala. Code § 19-3A-303 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-303
Section 19-3A-303 Apportionment When Income Interest Ends
Status: in_force

(a) For the purposes of this section, “undistributed income” means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.

(b) Except as provided in subsection (c), on the date when a mandatory income interest ends, the fiduciary shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the mandatory income beneficiary’s share of the undistributed income that is not disposed of under the terms of the trust.

(c) If, immediately before the income interest ends, the mandatory income beneficiary has an unqualified power to revoke more than five percent of the trust, then the undistributed income from the portion of the trust that may be revoked shall be added to principal.

(d) When a fiduciary’s obligation to pay a fixed annuity or a fixed fraction of the value of the trust’s assets ends, the fiduciary shall prorate the final payment.
Ala. Code § 19-2-4 — Alabama Code / Title 19 / Chapter 2 / Section 19-2-4
Section 19-2-4 Notice of Petition; Representation by Attorney
Status: in_force

Notice of any petition to remove a fiduciary in war service and the day appointed to hear the same must be given to him by the register or clerk by registered or certified mail, postage prepaid, addressed to him at his post-office address, if known, or by publication once a week for four consecutive weeks in some newspaper published in the county, and if no newspaper is published in the county by posting at the courthouse door and three other public places in the county. If said fiduciary does not personally appear therein, or is not represented by an authorized attorney, the court may appoint an attorney to represent him and a reasonable fee, to be taxed as a part of the costs of such proceedings, may be allowed to said attorney so appointed. Notice of said petition and the time appointed to hear the same must be given by the register or clerk to all other parties interested in the trust fund or the estate being administered, other than creditors, in the manner and as required by the Alabama Rules of Civil Procedure. Notice of any petition filed under the provisions of Section 19-2-3 must be given by the register or clerk to all parties interested in the trust fund or estate being administered, other than creditors, in the manner and as required by the Alabama Rules of Civil Procedure.
Ala. Code § 19-3D-15 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-15
Section 19-3D-15 Trust Limitation on Decanting
Status: in_force

(a) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of:

(1) the decanting power; or

(2) a power granted by state law to the fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust.

(b) Exercise of the decanting power is subject to any restriction in the first-trust instrument that expressly applies to exercise of:

(1) the decanting power; or

(2) a power granted by state law to a fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust.

(c) A general prohibition of the amendment or revocation of a first trust, a spendthrift clause, or a clause restraining the voluntary or involuntary transfer of a beneficiary’s interest does not preclude exercise of the decanting power.

(d) Subject to subsections (a) and (b), an authorized fiduciary may exercise the decanting power under this chapter even if the first-trust instrument permits the authorized fiduciary or another person to modify the first-trust instrument or to distribute part or all of the principal of the first trust to another trust.

(e) If a first-trust instrument contains an express prohibition described in subsection (a) or an express restriction described in subsection (b), the provision must be included in the second-trust instrument.
Ala. Code § 19-1-11 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-11
Section 19-1-11 Chapter Not Retroactive
Status: in_force

The provisions of this chapter shall not apply to transactions taking place prior to July 7, 1943.
Ala. Code § 19-3A-403 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-403
Section 19-3A-403 Business and Other Activities Conducted by Fiduciary
Status: in_force

(a) If a fiduciary who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or other activity instead of accounting for it as part of the trust’s general accounting records, then the fiduciary may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.

(b) A fiduciary who accounts separately for a business or other activity may determine the extent to which net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets and the other reasonably foreseeable needs of the business or other activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust’s general accounting records. If a fiduciary sells assets of the business or other activity, other than in the ordinary course of the business or activity, then the fiduciary shall account for the net amount received as principal in the trust’s general accounting records to the extent the fiduciary determines that the amount received is no longer required in the conduct of the business or other activity.

(c) Businesses and other activities for which a fiduciary may maintain separate accounting records include:

(1) Retail, manufacturing, service, and other traditional business activities;

(2) Farming;

(3) Raising and selling livestock and other animals;

(4) Managing rental properties;

(5) Extracting minerals and other natural resources;

(6) Timber operations; and

(7) Activities to which Section 19-3A-414 applies.
Ala. Code § 19-1A-17 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-17
Section 19-1A-17 Uniformity of Application and Construction
Status: in_force

In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Ala. Code § 19-3B-902 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-902
Section 19-3B-902 Standard of Care; Portfolio Strategy; Risk and Return Objectives
Status: in_force

(a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.

(b) A trustee’s investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.

(c) Among circumstances that a trustee may consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:

(1) general economic conditions;

(2) the possible effect of inflation or deflation;

(3) the expected tax consequences of investment decisions or strategies;

(4) the role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;

(5) the expected total return from income and the appreciation of capital;

(6) other resources of the beneficiaries;

(7) needs for liquidity, regularity of income, and preservation or appreciation of capital;

(8) an asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries;

(9) the size of the portfolio; and

(10) the purposes and estimated duration of the trust.

(d) A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.

(e) A trustee may invest in any kind of property or type of investment consistent with the standards of this chapter. Nothing contained in this section, insofar as such authorization may be prohibited by the Constitution of Alabama of 1901, shall authorize the investment of trust assets in the stock of any private corporation.
Ala. Code § 19-3D-3 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-3
Section 19-3D-3 Scope
Status: in_force

(a) Except as otherwise provided in subsections (b) and (c), this chapter applies to an express trust that is irrevocable, or revocable by the settlor only with the consent of the trustee or a person holding an adverse interest.

(b) This chapter does not apply to a trust held solely for charitable purposes.

(c) Subject to Section 19-3D-15, a trust instrument may restrict or prohibit exercise of the decanting power.

(d) This chapter does not limit the power of a trustee, powerholder, or other person to distribute or appoint property in further trust or to modify a trust under the trust instrument, laws of this state other than this chapter, common law, a court order, or a nonjudicial settlement agreement.

(e) This chapter does not affect the ability of a settlor to provide in a trust instrument for the distribution of the trust property or appointment in further trust of the trust property or for modification of the trust instrument.
Ala. Code § 19-3B-407 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-407
Section 19-3B-407 Evidence of Oral Trust
Status: in_force

Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.
Ala. Code § 19-5-9 — Alabama Code / Title 19 / Chapter 5 / Section 19-5-9
Section 19-5-9 Exercise of Authority by Fiduciary
Status: in_force

A fiduciary may exercise the authority herein granted without prior approval or leave of any court. A fiduciary may also exercise the authority granted in each section contained herein concurrently with the authority granted in each other section contained herein.
Ala. Code § 19-3A-401 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-401
Section 19-3A-401 Character of Receipts
Status: in_force

(a) For purposes of this section, “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a fiduciary has an interest other than (1) a trust or decedent’s estate to which Section 19-3A-402 applies, (2) a business or activity to which Section 19-3A-403 applies, or (3) an asset-backed security to which Section 19-3A-415 applies.

(b) Except as otherwise provided in this section, a fiduciary shall allocate to income money received from an entity.

(c) A fiduciary shall allocate the following receipts from an entity to principal:

(1) Property other than money except in cases when the fiduciary has the choice to receive dividends or similar payments either in cash or in the shares or similar ownership interests of the corporation or other business entity, in which case, the fiduciary shall allocate the receipts to income;

(2) Money received in one distribution or a series of related distributions in exchange for part or all of a trust’s interest in the entity;

(3) Money received in total or partial liquidation of the entity; and

(4) Money received from an entity that is a regulated investment company or a real estate investment trust, if the money distributed is a capital gain dividend for federal income tax purposes.

(d) For purposes of subsection (c)(3), money is received in partial liquidation to the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation.

(e) A fiduciary may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity’s board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation’s board of directors.
Ala. Code § 19-1-9 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-9
Section 19-1-9 Deposit in Fiduciary’s Personal Account
Status: in_force

If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and indorsed by him, if he is empowered to indorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.
Ala. Code § 19-3-171 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-171
Section 19-3-171 Sale of Land Held Under Trust Deed
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3A-104 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-104
Section 19-3A-104 Trustee’s Power to Adjust. (Amended by Act 2026-502)
Status: in_force

AMENDED BY ACT 2026-502, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.

(a) If the terms of the trust expressly provide by specific reference to this section, then a trustee may have the power to adjust between principal and income to the extent the trustee considers necessary if (1) the trustee invests and manages trust assets as a prudent investor; (2) the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust’s income, and (3) the trustee determines, after applying the rules in Section 19-3A-103(a), that the trustee is unable to comply with Section 19-3A-103(b).

(b) In deciding whether and to what extent to exercise the power conferred by subsection (a), a trustee shall consider all factors relevant to the trust and its beneficiaries, including, but not limited to:

(1) The nature, purpose, and expected duration of the trust;

(2) The intent of the settlor;

(3) The identity and circumstances of the beneficiaries;

(4) The needs for liquidity for the trust;

(5) The regularity of income to the trust;

(6) The need for preservation and appreciation of capital;

(7) The nature of the assets held in the trust and the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property;

(8) The extent to which an asset is used by a beneficiary;

(9) Whether an asset was purchased by the trustee or received from the settlor;

(10) The net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available;

(11) Whether and to what extent the terms of the trust a. give the trustee the power to invade principal or accumulate income, or b. prohibit the trustee from invading principal or accumulating income;

(12) The extent to which the trustee has exercised a power from time to time to invade principal or accumulate income;

(13) The actual and anticipated effect of economic conditions, inflation, and deflation upon principal and income; and

(14) The anticipated income and transfer tax consequences of an adjustment.

(c) Notwithstanding the power conferred by subsection (a), a trustee may not make an adjustment:

(1) That diminishes the income interest in a trust that requires all of the income to be paid at least annually to a spouse and for which an estate tax or gift tax marital deduction would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment;

(2) That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify the transfer for a gift tax exclusion;

(3) That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets;

(4) That changes the amount that is permanently set aside for charitable purposes under a will or the terms of a trust, unless both income and principal are so set aside;

(5) If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment;

(6) If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment;

(7) If the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly;

(8) If the trustee is a beneficiary of the trust; or

(9) If the trust is an express unitrust under Section 19-3A-105 (relating to express unitrusts) or is a unitrust by reason of a conversion under Section 19-3A-106 (relating to power to convert to unitrust).

(d) If subsection (c)(5), subsection (c)(6), subsection (c)(7), or subsection (c)(8) applies to a trustee and there is more than one trustee, then the co-trustee to whom the provision does not apply may make the adjustment, unless the exercise of the power by the remaining trustee or trustees is not permitted by the terms of the trust.

(e) A trustee may release the entire power conferred by subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in subsection (c)(1) through subsection (c)(7) or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual.

(f) The trustee or any beneficiary of a trust covered by this chapter (or a trust to be created from a decedent’s estate that is covered by this chapter) (1) may seek approval from a court of competent jurisdiction to be governed prospectively by this section, or (2) may at any time affirmatively elect to be governed prospectively by this section by obtaining the written consent of all of the current income beneficiaries and the presumptive remainder beneficiaries of the trust, and such written consent shall conclusively bind all persons who may have any interest in the affected trust, including all contingent remainder beneficiaries and potential appointees of the trust.
Ala. Code § 19-5-8 — Alabama Code / Title 19 / Chapter 5 / Section 19-5-8
Section 19-5-8 Purpose of Chapter
Status: in_force

The purpose of this chapter is to authorize a fiduciary to take appropriate action to preclude or minimize to the extent possible the imposition of the GST, and this chapter shall be broadly construed to effectuate this purpose.
Ala. Code § 19-1A-7 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-7
Section 19-1A-7 Disclosure of Content of Electronic Communications of Deceased User
Status: in_force

If a deceased user consented or a court directs disclosure of the contents of electronic communications of the deceased user, the custodian shall disclose to the personal representative of the estate of the user the content of an electronic communication sent or received by the user if the representative gives the custodian:

(1) a written request for disclosure in physical or electronic form;

(2) a copy of the death certificate of the user;

(3) a copy of letters testamentary, letters of administration, or court order;

(4) unless the user provided direction using an online tool, a copy of the user’s will, trust, power of attorney, or other record evidencing the user’s consent to disclosure of the content of electronic communications; and

(5) if requested by the custodian:

(A) a number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user’s account;

(B) evidence linking the account to the user; or

(C) a finding by the court that:

(i) the user had a specific account with the custodian, identifiable by the information specified in subparagraph (A);

(ii) disclosure of the content of electronic communications of the user would not violate 18 U.S.C. Section 2701 et seq., as amended, 47 U.S.C. Section 222, as amended, or other applicable law;

(iii) unless the user provided direction using an online tool, the user consented to disclosure of the content of electronic communications; or

(iv) disclosure of the content of electronic communications of the user is reasonably necessary for administration of the estate.
Ala. Code § 19-3D-19 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-19
Section 19-3D-19 Tax-Related Limitations
Status: in_force

(a) In this section the following terms have the following meanings:

(1) GRANTOR TRUST. A trust as to which a settlor of a first trust is considered the owner under 26 U.S.C. Sections 671 through 677, as amended, or 26 U.S.C. Section 679, as amended.

(2) INTERNAL REVENUE CODE. The United States Internal Revenue Code of 1986, as amended.

(3) NONGRANTOR TRUST. A trust that is not a grantor trust.

(4) QUALIFIED BENEFITS PROPERTY. Property subject to the minimum distribution requirements of 26 U.S.C. Section 401(a)(9), as amended, and any applicable regulations, or to any similar requirements that refer to 26 U.S.C. Section 401(a)(9) or the regulations.

(b) An exercise of the decanting power is subject to the following limitations:

(1) If a first trust contains property that qualified, or would have qualified but for provisions of this chapter other than this section, for a marital deduction for purposes of the gift or estate tax under the Internal Revenue Code or a state gift, estate, or inheritance tax, the second-trust instrument must not include or omit any term that, if included in or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying for the deduction, or would have reduced the amount of the deduction, under the same provisions of the Internal Revenue Code or state law under which the transfer qualified.

(2) If the first trust contains property that qualified, or would have qualified but for provisions of this chapter other than this section, for a charitable deduction for purposes of the income, gift, or estate tax under the Internal Revenue Code or a state income, gift, estate, or inheritance tax, the second-trust instrument must not include or omit any term that, if included in or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying for the deduction, or would have reduced the amount of the deduction, under the same provisions of the Internal Revenue Code or state law under which the transfer qualified.

(3) If the first trust contains property that qualified, or would have qualified but for provisions of this chapter other than this section, for the exclusion from the gift tax described in 26 U.S.C. Section 2503(b), as amended, the second-trust instrument must not include or omit a term that, if included in or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying under 26 U.S.C. Section 2503(b), as amended. If the first trust contains property that qualified, or would have qualified but for provisions of this chapter other than this section, for the exclusion from the gift tax described in 26 U.S.C. Section 2503(b), as amended, by application of 26 U.S.C. Section 2503(c), as amended, the second-trust instrument must not include or omit a term that, if included or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying under 26 U.S.C. Section 2503(c), as amended.

(4) If the property of the first trust includes shares of stock in an S corporation, as defined in 26 U.S.C. Section 1361, as amended, and the first trust is, or but for provisions of this chapter other than this section would be, a permitted shareholder under any provision of 26 U.S.C. Section 1361, as amended, an authorized fiduciary may exercise the power with respect to part or all of the S-corporation stock only if any second trust receiving the stock is a permitted shareholder under 26 U.S.C. Section 1361(c)(2), as amended. If the property of the first trust includes shares of stock in an S corporation and the first trust is, or but for provisions of this chapter other than this section would be, a qualified subchapter-S trust within the meaning of 26 U.S.C. Section 1361(d), as amended, the second-trust instrument must not include or omit a term that prevents the second trust from qualifying as a qualified subchapter-S trust.

(5) If the first trust contains property that qualified, or would have qualified but for provisions of this chapter other than this section, for a zero inclusion ratio for purposes of the generation-skipping transfer tax under 26 U.S.C. Section 2642(c), as amended, the second-trust instrument must not include or omit a term that, if included in or omitted from the first-trust instrument, would have prevented the transfer to the first trust from qualifying for a zero inclusion ratio under 26 U.S.C. Section 2642(c), as amended.

(6) If the first trust is directly or indirectly the beneficiary of qualified benefits property, the second-trust instrument may not include or omit any term that, if included in or omitted from the first-trust instrument, would have increased the minimum distributions required with respect to the qualified benefits property under 26 U.S.C. Section 401(a)(9), as amended, and any applicable regulations, or any similar requirements that refer to 26 U.S.C. Section 401(a)(9), as amended or the regulations. If an attempted exercise of the decanting power violates the preceding sentence, the trustee is deemed to have held the qualified benefits property and any reinvested distributions of the property as a separate share from the date of the exercise of the power and Section 19-3D-22 applies to the separate share.

(7) If the first trust qualifies as a grantor trust because of the application of 26 U.S.C. Section 672(f)(2)(A), as amended, the second trust may not include or omit a term that, if included in or omitted from the first-trust instrument, would have prevented the first trust from qualifying under 26 U.S.C. Section 672(f)(2)(A), as amended.

(8) In this paragraph, “tax benefit” means a federal or state tax deduction, exemption, exclusion, or other benefit not otherwise listed in this section, except for a benefit arising from being a grantor trust. Subject to paragraph (9), a second-trust instrument may not include or omit a term that, if included in or omitted from the first-trust instrument, would have prevented qualification for a tax benefit if:

(A) the first-trust instrument expressly indicates an intent to qualify for the benefit or the first-trust instrument clearly is designed to enable the first trust to qualify for the benefit; and

(B) the transfer of property held by the first trust or the first trust qualified, or but for provisions of this chapter other than this section, would have qualified for the tax benefit.

(9) Subject to paragraph (4):

(A) except as otherwise provided in paragraph (7), the second trust may be a nongrantor trust, even if the first trust is a grantor trust; and

(B) except as otherwise provided in paragraph (10), the second trust may be a grantor trust, even if the first trust is a nongrantor trust.

(10) An authorized fiduciary may not exercise the decanting power if a settlor objects in a signed record delivered to the fiduciary within the notice period and:

(A) the first trust and a second trust are both grantor trusts, in whole or in part, the first trust grants the settlor or another person the power to cause the first trust to cease to be a grantor trust, and the second trust does not grant an equivalent power to the settlor or other person; or

(B) the first trust is a nongrantor trust and a second trust is a grantor trust, in whole or in part, with respect to the settlor, unless:

(i) the settlor has the power at all times to cause the second trust to cease to be a grantor trust; or

(ii) the first-trust instrument contains a provision granting the settlor or another person a power that would cause the first trust to cease to be a grantor trust and the second-trust instrument contains the same provision.
Ala. Code § 19-3A-604 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-604
Section 19-3A-604 Application to Existing Trusts and Estates
Status: in_force

This chapter shall become applicable on January 1, 2001, to every trust and decedent’s estate already in existence on January 1, 2001, and to every testamentary trust to be created on or after January 1, 2001, from a decedent’s estate that is already in existence on January 1, 2001; provided, however, at any time prior to January 1, 2003, any such pre-existing trust or decedent’s estate (or testamentary trust to be created from a pre-existing estate) shall have the right to elect to continue operating under the law in effect prior to this chapter. Any fiduciary, income beneficiary, or presumptive remainder beneficiary of an affected trust or estate shall have the right to make the election to continue operating under the law in effect prior to this chapter, which election shall be made by a written instrument delivered to, or executed by, the fiduciary and placed with the fiduciary’s records. The decision of whether to make such election by the fiduciary or by any income beneficiary or presumptive remaindermen shall conclusively bind all persons who may have any interest in the affected trust, including all contingent remaindermen and potential appointees of the affected trust or estate.
Ala. Code § 19-3D-24 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-24
Section 19-3D-24 Terms of Second Trust
Status: in_force

A reference in Chapter 3B (commencing with Section 19-3B-101) of this title, to a trust instrument or terms of the trust includes a second-trust instrument and the terms of the second trust.
Ala. Code § 19-3-64 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-64
Section 19-3-64 Contents and Recordation of Declaration of Trust
Status: in_force

The written declaration of trust may provide for the election of successor trustees in the event of the death, resignation and removal of a trustee and may provide for the amendment of said declaration of trust. The declaration of trust may also contain such other provisions regarding the operation and administration of the business trust as may be necessary or desirable.

The declaration of trust shall be recorded in the office of the judge of probate in the county in which its principal place of business is located, and a recording charge of $15.00 shall be paid therefor, which shall be in lieu of all other recording charges.
Ala. Code § 19-1-4 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-4
Section 19-1-4 Transfer of Negotiable Instrument by Fiduciary
Status: in_force

If any negotiable instrument payable or indorsed to a fiduciary as such is indorsed by the fiduciary, or if any negotiable instrument payable or indorsed to his principal is indorsed by a fiduciary, or if any negotiable instrument payable or indorsed to his principal is indorsed by a fiduciary empowered to indorse such instrument on behalf of his principal, the indorsee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in indorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is transferred in any transaction known by the transferee to be for the personal benefit of the fiduciary, the creditor or other transferee is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in transferring the instrument.
Ala. Code § 19-3-232 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-232
Section 19-3-232 Appointment of Trustee
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-126 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-126
Section 19-3-126 Tax Anticipation Bonds, Etc., of Certain Counties
Status: in_force

Unless otherwise directed by the court having jurisdiction thereof, or by the will, trust agreement or other document which is the source of authority, any trustee, executor, administrator, guardian or one acting in any other fiduciary capacity, may, with the exercise of reasonable business prudence, in addition to any other investments now permitted by law, invest funds in the tax anticipation bonds, warrants, certificates of indebtedness or other security heretofore or hereafter issued by any county pursuant to Constitutional Amendment No. 76.
Ala. Code § 19-3-106 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-106
Section 19-3-106 Tracing Misapplied Assets
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-1-2 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-2
Section 19-1-2 Definitions
Status: in_force

In this chapter, unless the context or subject matter otherwise requires, the following terms shall have the meanings respectively ascribed to them by this section:

(1) BANK. Any person or association of persons, whether incorporated or not, carrying on the business of banking or trust company.

(2) FIDUCIARY. A trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer or any other person acting in a fiduciary capacity for any person, trust or estate.

(3) PERSON. Such term includes a corporation, partnership, or other association, or two or more persons having a joint or common interest.

(4) PRINCIPAL. Any person to whom a fiduciary as such owes an obligation.
Ala. Code § 19-3B-1001 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-1001
Section 19-3B-1001 Remedies for Breach of Trust
Status: in_force

(a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.

(b) To remedy a breach of trust that has occurred or may occur, the court may:

(1) compel the trustee to perform the trustee’s duties;

(2) enjoin the trustee from committing a breach of trust;

(3) compel the trustee to redress a breach of trust by paying money, restoring property, or other means;

(4) order a trustee to account;

(5) appoint a special fiduciary to take possession of the trust property and administer the trust;

(6) suspend the trustee;

(7) remove the trustee as provided in Section 19-3B-706;

(8) reduce or deny compensation to the trustee;

(9) subject to Section 19-3B-1012, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or

(10) order any other appropriate relief.
Ala. Code § 19-3B-1202 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-1202
Section 19-3B-1202 Electronic Records and Signatures
Status: in_force

The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such records or signatures, conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. § 7002) and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act.
Ala. Code § 19-3D-7 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-7
Section 19-3D-7 Notice; Exercise of Decanting Power
Status: in_force

(a) In this section, a notice period begins on the day notice is given under subsection (c) and ends 59 days after the day notice is given.

(b) Except as otherwise provided in this chapter, an authorized fiduciary may exercise the decanting power without the consent of any person and without court approval.

(c) Except as otherwise provided in subsection (f), an authorized fiduciary shall not exercise the decanting power prior to 60 days after giving notice in a record of the intended exercise of the decanting power to:

(1) each settlor of the first trust, if living or then in existence;

(2) each qualified beneficiary of the first trust;

(3) each holder of a presently exercisable power of appointment over any part or all of the first trust;

(4) each person that currently has the right to remove or replace the authorized fiduciary;

(5) each other fiduciary of the first trust;

(6) each fiduciary of the second trust; and

(7) the Attorney General, if Section 19-3D-14(b) applies.

(d) An authorized fiduciary may give notice under subsection (c) to a qualified beneficiary who is a minor or incapacitated individual by giving notice to such individual’s representative. An authorized fiduciary is not required to give notice under subsection (c) to a person that is not known to the fiduciary or is known to the fiduciary but cannot be located by the fiduciary after reasonable diligence.

(e) A notice under subsection (c) must:

(1) specify the manner in which the authorized fiduciary intends to exercise the decanting power;

(2) specify the proposed effective date for exercise of the power;

(3) include a copy of the first-trust instrument;

(4) include a copy of all second-trust instruments;

(5) include a statement indicating the capacity in which the intended recipient is being given notice; and

(6) include a statement that any application under Section 19-3D-9 must be filed within six months from the day notice is given.

(f) The decanting power may be exercised before expiration of the notice period under subsection (a) if all persons entitled to receive notice waive the period in a signed record.

(g) The receipt of notice, waiver of the notice period, or expiration of the notice period does not affect the right of a person to file an application under Section 19-3D-9.

(h) An exercise of the decanting power is not ineffective because of the failure to give notice to one or more persons under subsection (c) if the authorized fiduciary acted with reasonable care to comply with subsection (c).
Ala. Code § 19-3-101 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-101
Section 19-3-101 Petition to Enforce Liability - Filing; Substitution of Parties
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-20 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-20
Section 19-3-20 Right of Creditors to Apply for Order Requiring Trustee to Give Bond
Status: in_force

When an express trust is created for the payment or security of debts and, by the terms thereof, the trustee is not required to give bond with surety, any creditor interested therein may apply to the register or clerk of the circuit court of the county in which the trust property, or the most valuable portion thereof, may be, for an order requiring such trustee to give bond with surety for the faithful administration of the trust.
Ala. Code § 19-3-9 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-9
Section 19-3-9 Satisfaction of Pecuniary Gifts by Distribution of Property in Kind
Status: in_force

(a) Where by the terms of a will or trust instrument a fiduciary may or must satisfy a pecuniary gift thereunder by distributing or allocating property in kind according to the value thereof other than the value on the date of distribution or allocation, the fiduciary, in satisfying such gift from the property available therefor, shall, unless the governing document expressly prohibits such a selection of property, select property, including cash, fairly representative of appreciation or depreciation in the value at the date or dates of distribution or allocation of all property then available for distribution or allocation in satisfaction of such gift.

(b) The enactment of this section is not intended to imply that the present law of this state, relating to selection of property by fiduciaries in the circumstances herein described, has been otherwise than as set forth in subsection (a) of this section.
Ala. Code § 19-3D-26 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-26
Section 19-3D-26 Later-Discovered Property
Status: in_force

(a) Except as otherwise provided in subsection (c), if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust and property paid to or acquired by the first trust after the exercise of the power is part of the trust estate of the second trust or trusts.

(b) Except as otherwise provided in subsection (c), if exercise of the decanting power was intended to distribute less than all the principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power remains part of the trust estate of the first trust.

(c) An authorized fiduciary may provide in an exercise of the decanting power or by the terms of a second trust for disposition of later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power.
Ala. Code § 19-3-234 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-234
Section 19-3-234 Fees of Register or Clerk
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-1A-10 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-10
Section 19-1A-10 Disclosure of Other Digital Assets of Principal
Status: in_force

Unless otherwise ordered by the court, directed by the principal, or provided by a power of attorney, a custodian shall disclose to an agent with specific authority over digital assets or general authority to act on behalf of a principal a catalogue of electronic communications sent or received by the principal and digital assets, other than the content of electronic communications, of the principal if the agent gives the custodian:

(1) a written request for disclosure in physical or electronic form;

(2) an original or a copy of the power of attorney that gives the agent specific authority over digital assets or general authority to act on behalf of the principal;

(3) a certification by the agent, under penalty of perjury, that the power of attorney is in effect; and

(4) if requested by the custodian:

(A) a number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the principal’s account; or

(B) evidence linking the account to the principal.
Ala. Code § 19-3-36 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-36
Section 19-3-36 Time for Settlement; Notice to Creditors
Status: in_force

Upon the filing of such account the register or clerk must appoint a day, not less than 20 nor more than 60 days thereafter, to hear and pass upon the account, and must give notice thereof by mail, postage prepaid, to each creditor, his agent or attorney and to the assignor.
Ala. Code § 19-1-13 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-13
Section 19-1-13 Uniformity of Interpretation
Status: in_force

This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.
Ala. Code § 19-3-121 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-121
Section 19-3-121 Interest-Bearing Warrants
Status: in_force

A trustee, executor, administrator, guardian or one acting in any other fiduciary capacity may, with the exercise of reasonable business prudence, in addition to any other investments now permitted by law, invest funds in interest-bearing warrants of any county board of education or city board of education in the State of Alabama, which warrants are secured by a pledge of a special county ad valorem tax for schools or a special district ad valorem tax for schools.
Ala. Code § 19-1-10 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-10
Section 19-1-10 Deposit in Names of Two or More Fiduciaries
Status: in_force

When a deposit is made in a bank in the name of two or more persons as fiduciaries and a check is drawn upon the trust account by any fiduciary or fiduciaries authorized by the other fiduciary or fiduciaries to draw checks upon the trust account, neither the payee nor other holder nor the bank is bound to inquire whether it is a breach of trust to authorize such fiduciary or fiduciaries to draw checks upon the trust account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank amounts to bad faith.
Ala. Code § 19-3-170 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-170
Section 19-3-170 Partition of Freehold Devised with Contingent Interest
Status: in_force

When any deceased tenant in common, joint tenant or coparcener of real estate shall have devised any freehold interest in such estate to any person, with a contingent interest by way of remainder, substitution or executory devise to any other person, born or unborn, the circuit court may, on the complaint of any person interested, order partition of such estate to be made between the devisee or devisees, the surviving cotenant or cotenants and the person having such contingent interest; and the judgment shall bind the parties and the person having such contingent interest, his heirs and assigns.
Ala. Code § 19-3B-105 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-105
Section 19-3B-105 Default and Mandatory Rules
Status: in_force

(a) Except as otherwise provided in the terms of the trust, this chapter governs the duties and powers of a trustee, relations among trustees, and the rights and interests of a beneficiary.

(b) The terms of a trust prevail over any provision of this chapter except:

(1) the requirements for creating a trust;

(2) the duty of a trustee to act in good faith and in accordance with the terms and purposes of the trust and the interest of the beneficiaries;

(3) the requirement that a trust and its terms be for the benefit of its beneficiaries, and that the trust have a purpose that is lawful, not contrary to public policy, and possible to achieve;

(4) the power of the court to modify or terminate a trust under Sections 19-3B-410 through 19-3B-416;

(5) the effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in Article 5;

(6) the power of the court under Section 19-3B-702 to require, dispense with, or modify or terminate a bond;

(7) the power of the court under Section 19-3B-708(b) to adjust a trustee’s compensation, as specified in the terms of the trust or by written agreement, which is unreasonably low or high;

(8) the duty under Section 19-3B-813(a)(2) to respond to the request of a qualified beneficiary of an irrevocable trust for trustee’s reports and other information reasonably related to the administration of a trust;

(9) the effect of an exculpatory term under Section 19-3B-1008;

(10) the rights under Sections 19-3B-1010 through 19-3B-1013 of a person other than a trustee or beneficiary;

(11) periods of limitation for commencing a judicial proceeding;

(12) the power of the court to take such action and exercise such jurisdiction as may be necessary in the interests of justice; and

(13) a proceeding as provided in Sections 19-3B-203 through 19-3B-205.
Ala. Code § 19-3-81 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-81
Section 19-3-81 Fiduciary Funds in Hands of Register, Probate Judge, Sheriff, and Clerk to Be Reported
Status: in_force

Every register, probate judge, sheriff, clerk and register shall prepare a report in writing showing the amount of all fiduciary funds in the hands of such official, designating the name of the owner and the case or the circumstances under which the same was received, which statement shall be verified.
Ala. Code § 19-3A-607 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-607
Section 19-3A-607 Applicability of Section 19-3A-409
Status: in_force

Section 19-3A-409, as amended by Act 2012-550, applies to a trust described in Section 19-3A-409(d) on and after the following dates:

(1) If the trust is not funded as of January 1, 2013, the date of the decedent’s death.

(2) If the trust is initially funded in the calendar year beginning January 1, 2013, the date of the decedent’s death.

(3) If the trust is not described in subdivision (1) or (2), January 1, 2013.
Ala. Code § 19-3-2 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-2
Section 19-3-2 Extinguishment of Trust
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3C-6 — Alabama Code / Title 19 / Chapter 3C / Section 19-3C-6
Section 19-3C-6 Release or Modification of Restrictions on Management, Investment, or Purpose
Status: in_force

(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.

(b) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall apply in the name of the institution to the circuit court of the county in which the principal activities of the institution are conducted, and shall notify the Attorney General of the application, and the Attorney General must be given an opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor’s probable intention.

(c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, wasteful, or if because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall apply in the name of the institution to the circuit court of the county in which the principal activities of the institution are conducted, and shall notify the Attorney General of the application, and the Attorney General must be given an opportunity to be heard.

(d) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60 days after notification to the Attorney General, may release or modify the restriction, in whole or part, if:

(1) the institutional fund subject to the restriction has a total value of less than fifty thousand dollars ($50,000);

(2) more than 10 years have elapsed since the fund was established; and

(3) the institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
Ala. Code § 19-3C-10 — Alabama Code / Title 19 / Chapter 3C / Section 19-3C-10
Section 19-3C-10 Uniformity of Application and Construction
Status: in_force

In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Ala. Code § 19-3-328 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-328
Section 19-3-328 Construction of Article
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-131 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-131
Section 19-3-131 Petition to Obtain Authority; Notice
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3B-703 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-703
Section 19-3B-703 Co-Trustees
Status: in_force

(a) Co-trustees who are unable to reach a unanimous decision after consultation among all the co-trustees may act by majority decision.

(b) If a vacancy occurs in a co-trusteeship, then the remaining co-trustees may act for the trust.

(c) A co-trustee must participate in the performance of a trustee’s function and consult with the other co-trustees unless the co-trustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the co-trustee has properly delegated the performance of the function to another trustee.

(d) If a co-trustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, then the remaining co-trustee or a majority of the remaining co-trustees may act for the trust.

(e) A trustee may delegate to a co-trustee the performance of any function other than a function that the terms of the trust expressly require the trustees to perform jointly. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.

(f) Except as otherwise provided in subsection (g), a trustee who does not join in an action of another trustee is not liable for the action.

(g) Each trustee shall exercise reasonable care to: (i) prevent a co-trustee from committing a serious breach of trust; and (ii) compel a co-trustee to redress a serious breach of trust.

(h) A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any co-trustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust.
Ala. Code § 19-3-66 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-66
Section 19-3-66 Suits Against Trust; Property Subject to Attachment and Execution
Status: in_force

A business trust may be sued for debts and other obligations incurred by the trustees in the performance of their duties under the declaration of trust and for any damages resulting from the negligence of such trustees, and its property shall be subject to attachment and execution in like manner as if it were a corporation.
Ala. Code § 19-3B-304 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-304
Section 19-3B-304 Representation by Person Having Substantially Identical Interest
Status: in_force

(a) Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest between the representative and the person represented.

(b) A presumptive remainder beneficiary may represent contingent successor remainder beneficiaries with respect to matters in which there is no conflict of interest.
Ala. Code § 19-2-2 — Alabama Code / Title 19 / Chapter 2 / Section 19-2-2
Section 19-2-2 Removal of Fiduciary; Appointment of Successor; Accounting by Fiduciary
Status: in_force

Any fiduciary engaged in war service may be removed from his office as such upon petition filed in the proper court having jurisdiction by any person interested in the trust fund or the estate being administered or by any co-fiduciary or surety, and if the trust has not been fully executed or the administration of the estate has not been fully completed, the court, upon such removal, must appoint a successor fiduciary to fill the vacancy caused by such removal if there is no trust instrument providing a practicable method of appointment. If the court shall find that, because of the military service of the fiduciary, the stating of an account at that time is not possible, an accounting by such fiduciary in military service shall not be a prerequisite to the appointment of a successor fiduciary, and upon the reinstatement of such fiduciary or at such time as the said court deems meet, such fiduciary may be required by said court to file an accounting of his administration of the trust fund.
Ala. Code § 19-3B-1009 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-1009
Section 19-3B-1009 Beneficiary’s Consent, Release, or Ratification
Status: in_force

A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless:

(1) the consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or

(2) at the time of the consent, release, or ratification, the beneficiary did not know of the material facts relating to the alleged breach and the trustee had actual knowledge of the facts relating to the alleged breach.
Ala. Code § 19-3-86 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-86
Section 19-3-86 Enforcement
Status: in_force

The judges of courts of record in this state, at the first session of their courts held after January 1, shall enforce the provisions of this article and, if such report is not filed within the first day of said court, shall issue a mandatory order requiring the filing of said report and, unless the same is filed within the time named in said order, shall punish officers so in default for contempt of court.
Ala. Code § 19-3A-103 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-103
Section 19-3A-103 Fiduciary Duties; General Principles
Status: in_force

(a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Article 2 and Article 3, a fiduciary:

(1) Shall administer a trust or decedent’s estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter;

(2) May administer a trust or decedent’s estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter;

(3) Subject to the provisions of Section 19-3A-104, shall administer a trust or decedent’s estate in accordance with this chapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and

(4) Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.

(b) In exercising the power to adjust under Section 19-3A-104(a) or the power to convert to a unitrust under Section 19-3A-106, if applicable, or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, a will, or this chapter, a fiduciary shall administer a trust or decedent’s estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. The exercise of discretion in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.
Ala. Code § 19-3-173 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-173
Section 19-3-173 Investment of Proceeds of Sale
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-4A-2 — Alabama Code / Title 19 / Chapter 4A / Section 19-4A-2
Section 19-4A-2 Investment in Accordance with Terms of Governing Document
Status: in_force

A bank or trust company duly authorized to exercise fiduciary powers through the operation of a trust department shall invest idle funds in each fiduciary account in accordance with the specific terms of the governing document.
Ala. Code § 19-3-270 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-270
Section 19-3-270 Definitions
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-1A-9 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-9
Section 19-1A-9 Disclosure of Content of Electronic Communications of Principal
Status: in_force

To the extent a power of attorney expressly grants an agent authority over the content of electronic communications sent or received by the principal and unless directed otherwise by the principal or the court, a custodian shall disclose to the agent the content if the agent gives the custodian:

(1) a written request for disclosure in physical or electronic form;

(2) an original or copy of the power of attorney expressly granting the agent authority over the content of electronic communications of the principal;

(3) a certification by the agent, under penalty of perjury, that the power of attorney is in effect; and

(4) if requested by the custodian:

(A) a number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the principal’s account; or

(B) evidence linking the account to the principal.
Ala. Code § 19-3B-106 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-106
Section 19-3B-106 Common Law of Trusts; Principles of Equity
Status: in_force

The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this state.
Ala. Code § 19-3-275 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-275
Section 19-3-275 Premium and Discount Obligations
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3B-812 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-812
Section 19-3B-812 Collecting Trust Property
Status: in_force

A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee.
Ala. Code § 19-1A-18 — Alabama Code / Title 19 / Chapter 1A / Section 19-1A-18
Section 19-1A-18 Relation to Electronic Signatures in Global and National Commerce Act
Status: in_force

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b).
Ala. Code § 19-3B-102 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-102
Section 19-3B-102 Scope
Status: in_force

This chapter applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust.
Ala. Code § 19-3C-9 — Alabama Code / Title 19 / Chapter 3C / Section 19-3C-9
Section 19-3C-9 Relation to Electronic Signatures in Global and National Commerce Act
Status: in_force

This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101 of that act, 15 U.S.C. Section 7001(a), or authorize electronic delivery of any of the notices described in Section 103 of that act, 15 U.S.C. Section 7003(b).
Ala. Code § 19-3B-411 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-411
Section 19-3B-411 Modification or Termination of Noncharitable Irrevocable Trust by Consent
Status: in_force

(a) If, upon petition, the court finds that the settlor and all beneficiaries consent to the modification or termination of an irrevocable trust, the court shall enter an order approving the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust. A settlor’s power to consent to a trust’s modification or termination may be exercised by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust; by the settlor’s conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or by the settlor’s guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.

(b) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.

(c) A spendthrift provision in the terms of the trust is not presumed to constitute a material purpose of the trust. This subsection applies only to irrevocable trusts created on or after January 1, 2007, and to revocable trusts which become irrevocable on or after January 1, 2007.

(d) Upon termination of a trust under subsection (a) or (b), the trustee shall distribute the trust property as agreed by the beneficiaries.

(e) If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection (a) or (b), then the modification or termination may be approved by the court if the court is satisfied that:

(1) if all of the beneficiaries had consented, the trust could have been modified or terminated under this section; and

(2) the interests of a beneficiary who does not consent will be adequately protected.
Ala. Code § 19-3-82 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-82
Section 19-3-82 Filing of Reports of Clerk and Register
Status: in_force

The register and the clerk shall file the report with the judge of the court of which he is the clerk, or clerk and register, at the first session of said court after January 1 of each year.
Ala. Code § 19-3A-505 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-505
Section 19-3A-505 Income Taxes
Status: in_force

(a) A tax required to be paid by a fiduciary based on receipts allocated to income shall be paid from income.

(b) A tax required to be paid by a fiduciary based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority.

(c) A tax required to be paid by a fiduciary on the trust’s share of an entity’s taxable income shall be paid as follows:

(1) From income to the extent that receipts from the entity are allocated only to income;

(2) From principal to the extent that receipts from the entity are allocated only to principal;

(3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and

(4) From principal to the extent that the tax exceeds the total receipts from the entity.

(d) After applying subsections (a) through (c), the fiduciary shall adjust income or principal receipts to the extent that the trust’s taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
Ala. Code § 19-5-2 — Alabama Code / Title 19 / Chapter 5 / Section 19-5-2
Section 19-5-2 Allocation of Gst Exemption
Status: in_force

Unless prohibited by the governing instrument, any person having authority under Chapter 13 of the Internal Revenue Code to allocate any GST exemption shall be entitled to allocate such exemption to any property or to exclude any such property from such allocation.
Ala. Code § 19-5-11 — Alabama Code / Title 19 / Chapter 5 / Section 19-5-11
Section 19-5-11 Applicability of Chapter
Status: in_force

This chapter applies to any trust or estate that may be subject to Chapter 13 of the Internal Revenue Code.
Ala. Code § 19-3D-12 — Alabama Code / Title 19 / Chapter 3D / Section 19-3D-12
Section 19-3D-12 Decanting Power Under Limited Distributive Discretion
Status: in_force

(a) In this section, “limited distributive discretion” means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard.

(b) An authorized fiduciary that has limited distributive discretion over the principal of the first trust for the benefit of one or more current beneficiaries may exercise the decanting power over the principal of the first trust. If an authorized fiduciary has limited distributive discretion over part but not all of the principal of a first trust, the fiduciary may exercise the decanting power over that part of the principal over which the authorized fiduciary has limited distributive discretion.

(c) Under this section and subject to Section 19-3D-14, a second trust may be created or administered under the law of any jurisdiction. Under this section, the second trusts, in the aggregate, must grant each beneficiary of the first trust beneficial interests which are substantially similar to the beneficial interests of the beneficiary in the first trust.

(d) A power to make a distribution under a second trust for the benefit of a beneficiary who is an individual is substantially similar to a power under the first trust to make a distribution directly to the beneficiary. A distribution is for the benefit of a beneficiary if:

(1) the distribution is applied for the benefit of the beneficiary;

(2) the beneficiary is under a legal disability or the trustee reasonably believes the beneficiary is incapacitated, and the distribution is made as permitted under Chapter 3B (commencing with Section 19-3B-101) of this title; or

(3) the distribution is made as permitted under the terms of the first-trust instrument and the second-trust instrument for the benefit of the beneficiary.
Ala. Code § 19-3A-202 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-202
Section 19-3A-202 Distribution to Residuary and Remainder Beneficiaries
Status: in_force

(a) Each beneficiary described in Section 19-3A-201(d) is entitled to receive a portion of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using inventory values as of the appropriate distribution dates.

(b) In determining a beneficiary’s share of net income, the following rules apply:

(1) The beneficiary’s fractional interest in the undistributed principal assets shall be calculated without regard to property specifically given to the beneficiary and property required to pay pecuniary amounts not in trust.

(2) The beneficiary’s fractional interest in the undistributed principal assets shall be calculated on the basis of the aggregate inventory value of those assets as of the distribution date without reducing the value by any unpaid principal obligation.

(c) If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, then the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.

(d) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.

(e) A fiduciary may apply the rules in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.
Ala. Code § 19-3-130 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-130
Section 19-3-130 Investment Outside State
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-5-10 — Alabama Code / Title 19 / Chapter 5 / Section 19-5-10
Section 19-5-10 Fiduciary Not Liable for Acts in Good Faith
Status: in_force

Any fiduciary who in good faith acts or fails to act shall not be liable to any person for taking or failing to take any action authorized or required by this chapter.
Ala. Code § 19-3B-203 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-203
Section 19-3B-203 Subject Matter Jurisdiction
Status: in_force

(a) Except as provided in subsection (b), the circuit court has exclusive jurisdiction of proceedings in this state brought by a trustee or beneficiary concerning the administration of a trust.

(b) A probate court granted statutory equitable jurisdiction has concurrent jurisdiction with the circuit court in any proceeding involving a testamentary or inter vivos trust.
Ala. Code § 19-3B-109 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-109
Section 19-3B-109 Methods and Waiver of Notice
Status: in_force

(a) Notice to a person under this chapter or the transmission of information to a person under this chapter must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or information. Permissible methods of notice or for transmitting information include first-class mail, personal delivery, delivery to the person’s last known place of residence or place of business, a properly directed electronic message, or any method otherwise provided by the Alabama Rules of Civil Procedure.

(b) Notice otherwise required under this chapter or information otherwise required to be sent under this chapter need not be provided to a person whose identity or location is unknown to and not reasonably ascertainable by the trustee.

(c) Notice under this chapter or the transmission of information under this chapter may be waived by the person to be notified or sent the document.

(d) Notice of a judicial proceeding must be given as provided in the applicable rules of civil procedure.
Ala. Code § 19-3-26 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-26
Section 19-3-26 When Petition for Administration May Be Filed; Contents of Petition
Status: in_force

If the value of the trust estate, as appraised by the appraisers, exceeds $1,000.00, the trustee, or assignor, or any creditor, or any number of them, may file a petition in the circuit court of the county in which the inventory and appraisement are required to be filed, for the administration of the trust. Such petition must briefly allege the making of the assignment, the value of the trust estate, as shown by the appraisement, and the names and residences of all creditors, so far as known, and pray that the trust be administered by the circuit court.
Ala. Code § 19-3E-3 — Alabama Code / Title 19 / Chapter 3E / Section 19-3E-3
Section 19-3E-3 Jurisdiction and Venue
Status: in_force

(a) Except as provided in subsection (b), the circuit court has exclusive jurisdiction over an action that addresses either of the following questions:

(1) Whether a transfer is a qualified disposition.

(2) The extent of the transferor’s interest in, or the income from, a qualified disposition.

(b) A probate court granted statutory equitable jurisdiction has concurrent jurisdiction with the circuit court over questions described in subsection (a) and over an action brought under subsection (b) of Section 19-3E-5.

(c) Except to the extent otherwise provided by court rule, venue for a proceeding under subsection (a) or (b) is in the following order of priority:

(1) In any county where venue is proper for civil actions generally, pursuant to Chapter 3 of Title 6.

(2) In a county in this state in which the current qualified trustee has its usual place of business or residence.

(3) In a county in this state in which the immediately preceding qualified trustee had its usual place of business or residence.

(4) In a county in this state in which any trust property subject to the qualified disposition is located.

(5) In a county in this state in which a trust beneficiary resides.
Ala. Code § 19-3-132 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-132
Section 19-3-132 Judgment on Hearing
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3B-707 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-707
Section 19-3B-707 Delivery of Property by Former Trustee
Status: in_force

(a) Unless a co-trustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has:

(1) the duties of a trustee; and

(2) the powers necessary to protect the trust property.

(b) A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee’s possession to the co-trustee, successor trustee, or other person entitled to it.
Ala. Code § 19-3A-606 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-606
Section 19-3A-606 Applicability to Tenant and Remainder Interests
Status: in_force

This chapter shall govern the ascertainment of income and principal, and the apportionment of receipts and disbursements between tenant and remainderman, in all cases where a principal has been established with or, unless otherwise stated in this chapter, without the interposition of a trust; except that in the establishment of the principal, provision may be made touching all matters covered by this chapter, and the person establishing the principal may direct the manner of ascertainment of income and principal and the apportionment of receipts and disbursements or grant discretion to the trustee or other person to do so, and such provision and direction, where not otherwise contrary to law, shall control notwithstanding this chapter. This section is intended to be declarative of the law of Alabama from the time of enactment of the Alabama Principal and Income Act pursuant to this chapter.
Ala. Code § 19-3-321 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-321
Section 19-3-321 Trustee Allowed to Perform Prudent Person Actions Without Prior Court Authorization
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3A-101 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-101
Section 19-3A-101 Short Title
Status: in_force

This chapter shall be known and may be cited as the “Alabama Principal and Income Act.”
Ala. Code § 19-3E-10 — Alabama Code / Title 19 / Chapter 3E / Section 19-3E-10
Section 19-3E-10 Application; Relation to Other Laws
Status: in_force

(a) Subject to subsection (e) of Section 19-3E-5, this chapter applies to qualified dispositions made on or after April 20, 2021.

(b) If any provision of this chapter conflicts with any provision of the Alabama Uniform Trust Code, Sections 19-3B-101 to 19-3B-1305, inclusive, or the Alabama Uniform Voidable Transactions Act, Sections 8-9B-1 to 8-9B-17, inclusive, the provision of this chapter prevails.
Ala. Code § 19-3A-411 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-411
Section 19-3A-411 Minerals, Water, and Other Natural Resources
Status: in_force

(a) To the extent that a fiduciary accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the fiduciary shall allocate them as follows:

(1) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income.

(2) If received from a production payment, a receipt shall be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance shall be allocated to principal.

(3) If an amount received as a royalty payment, shut-in-well payment, take-or-pay payment, bonus, or a delay rental that is more than nominal, then ninety percent (90%) shall be allocated to principal and the balance to income.

(4) If an amount is received from a working interest or any other interest not provided for in subdivisions (1), (2), or (3), then ninety percent (90%) of the net amount received shall be allocated to principal and the balance to income.

(b) An amount received on account of an interest in water that is renewable shall be allocated to income. If the water is not renewable, then ninety percent (90%) of the amount shall be allocated to principal and the balance to income.

(c) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.

(d) If a trust owns an interest in minerals, water, or other natural resources on January 1, 2001, then the fiduciary may allocate receipts from the interest as provided in this chapter or in the manner used by the fiduciary before January 1, 2001. If the trust acquires an interest in minerals, water, or other natural resources after January 1, 2001, then the fiduciary shall allocate receipts from the interest as provided in this chapter.
Ala. Code § 19-3B-416 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-416
Section 19-3B-416 Modification to Achieve Settlor’s Tax Objectives
Status: in_force

To achieve the settlor’s tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor’s probable intention. The court may provide that the modification has retroactive effect.
Ala. Code § 19-3E-9 — Alabama Code / Title 19 / Chapter 3E / Section 19-3E-9
Section 19-3E-9 Rights of Creditor of Trust Beneficiary in a Trust or a Portion of a Trust That Is a Qualified Distribution
Status: in_force

(a) A trust beneficiary does not have the power or capacity to transfer any of the income from property of a trust or portion of a trust which is the subject of a qualified disposition by his or her order, voluntary or involuntary, or by an order or direction of a court.

(b) Except as otherwise provided in this chapter, the interest of a beneficiary in a trust or portion of a trust that is a qualified disposition is not subject to a process of attachment issued against the beneficiary and may not be taken in execution under any form of legal process directed against the beneficiary, trustee, trust estate, or any part of the income of the trust estate. The whole of the trust estate and the income of the trust estate shall go to and be applied by the trustee solely for the benefit of the beneficiary, free, clear, and discharged of all obligations of the beneficiary.

(c) The trustee of a qualified disposition shall disregard and oppose an assignment or other act, voluntary or involuntary, that is attempted contrary to this section. The trustee is entitled to reimbursement for all attorneys fees, costs, and expenses associated with carrying out this duty and the amount of the attorneys fees, costs, and expenses is a lien against the property that is the subject of the qualified disposition. A trustee is not liable, and a trust beneficiary or any successor trust beneficiary does not have a claim or cause of action against a trustee, for a breach of this duty unless the trustee’s breach was not done in good faith or was the result of reckless indifference to the purposes of the trust or the interests of the trust beneficiaries.

(d) This section does not prohibit a beneficiary from disclaiming an interest in a trust or portion of a trust that is a qualified disposition or from exercising a power of appointment.
Ala. Code § 19-3B-708 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-708
Section 19-3B-708 Compensation of Trustee
Status: in_force

(a) If the terms of a trust do not specify the trustee’s compensation, then a trustee is entitled to compensation that is reasonable under the circumstances.

(b) If the terms of a trust specify the trustee’s compensation, the trustee has entered into a written fee agreement with the settlor, or the trustee has entered into a written fee agreement with the adult current permissible distributees of income and, in the event the trustee’s compensation is allocated to principal, the adult presumptive remainder beneficiaries of the trust, then the trustee is entitled to be compensated as specified in the applicable agreement, but the court may allow more or less compensation if:

(1) the duties of the trustee are substantially different from those contemplated when the trust was created or when the applicable agreement was executed; or

(2) the compensation specified by the terms of the trust or the applicable agreement would be unreasonably low or high.

(c) A trustee who invests in any common trust fund or other collective investment fund maintained by any regulated financial institution, or securities of, or other interests in any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, as from time to time amended, to which the trustee, or its affiliate, provides services such as investment advisor, sponsor, distributor, custodian, transfer agent, registrar, broker, or otherwise, may be compensated by the investment company or investment trust for providing those services out of fees charged to the investment company or the investment trust or to the trust, if the trustee at least annually notifies the persons entitled under Section 19-3B-813(a) to receive a copy of the trustee’s annual report, prospectus, or other report, of the rate and method by which the compensation was determined.

(d) Compensation paid to a business entity affiliated with the trustee shall be presumed to be reasonable if the compensation is consistent with the published fee schedule maintained by the affiliated business entity in the ordinary course of business.
Ala. Code § 19-4A-4 — Alabama Code / Title 19 / Chapter 4A / Section 19-4A-4
Section 19-4A-4 Reasonable Rate of Return; Considerations
Status: in_force

In the absence of specific instructions in the governing document, the fiduciary shall select an investment vehicle for idle funds in each fiduciary account which should provide a reasonable rate of return, taking into consideration the income needs of the current income beneficiary, the quality of the investment, the liquidity needs of the fiduciary account and the expense of making the funds productive of income.
Ala. Code § 19-3B-602 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-602
Section 19-3B-602 Revocation or Amendment of Revocable Trust
Status: in_force

(a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before January 1, 2007.

(b) If a revocable trust is created or funded by more than one settlor, then:

(1) to the extent the trust consists of community property, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses;

(2) to the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor’s contribution; and

(3) upon the revocation or amendment of the trust by fewer than all of the settlors, the trustee shall promptly notify the other settlors of the revocation or amendment.

(c) The settlor may revoke or amend a revocable trust:

(1) by substantial compliance with a method provided in the terms of the trust; or

(2) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by:

(A) a later will or codicil that expressly refers to the trust or that specifically devises property that would otherwise have passed according to the terms of the trust; or

(B) any other method manifesting clear and convincing evidence of the settlor’s intent; provided, however, that a written revocable trust may only be amended and revoked by a later written instrument delivered to the trustee.

(d) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.

(e) A settlor’s powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust.

(f) A conservator of the settlor or, if no conservator has been appointed, a guardian of the settlor may exercise a settlor’s powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the conservatorship or guardianship.

(g) A trustee who does not have actual knowledge that a trust has been revoked or amended is not liable to the settlor or settlor’s successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.
Ala. Code § 19-3-7 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-7
Section 19-3-7 Registration of Securities Held by Corporate Fiduciary in Name of Nominee of Such Fiduciary
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3B-904 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-904
Section 19-3B-904 Duties at Inception of Trusteeship
Status: in_force

Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this chapter.
Ala. Code § 19-3B-101 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-101
Section 19-3B-101 Short Title
Status: in_force

This chapter may be cited as the Alabama Uniform Trust Code.
Ala. Code § 19-1-5 — Alabama Code / Title 19 / Chapter 1 / Section 19-1-5
Section 19-1-5 Check Drawn by Fiduciary Payable to Third Person
Status: in_force

If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of his principal by a fiduciary empowered to draw such instrument in the name of his principal, the payee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in drawing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If, however, such instrument is payable to a personal creditor of the fiduciary and delivered to the creditor in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is drawn and delivered in any transaction known by the payee to be for the personal benefit of the fiduciary, the creditor or other payee is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the instrument.
Ala. Code § 19-3A-601 — Alabama Code / Title 19 / Chapter 3A / Section 19-3A-601
Section 19-3A-601 Uniformity of Application and Construction
Status: in_force

In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Ala. Code § 19-3-84 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-84
Section 19-3-84 Reports to Be Open to Public
Status: in_force

The judge of such court shall carefully examine said report and order the same recorded by the clerk of the court in a well-bound book, kept for that purpose, which book shall be open to the inspection of the public.
Ala. Code § 19-3-103 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-103
Section 19-3-103 Petition to Enforce Liability - Pending Action for Administration
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-41 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-41
Section 19-3-41 When Settlements Compelled; Removal of Trustee and Appointment of Successor
Status: in_force

If the trustee shall fail to make settlement, partial or final, as required in this article he may be compelled to do so, by citation to be issued by the register or clerk on order of the court, at the instance of any creditor or party interested in the trust, in all respects as executors and administrators may be compelled to make settlements in the court of probate; or, upon motion of a majority in value of the creditors, the court must remove such defaulting trustee and appoint another in his stead, who may be nominated by the creditors, as provided by this Code, for the nomination of an administrator of an insolvent estate by the creditors thereof.
Ala. Code § 19-3C-4 — Alabama Code / Title 19 / Chapter 3C / Section 19-3C-4
Section 19-3C-4 Appropriation for Expenditure or Accumulation of Endowment Fund; Rules of Construction
Status: in_force

(a) Subject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:

(1) the duration and preservation of the endowment fund;

(2) the purposes of the institution and the endowment fund;

(3) general economic conditions;

(4) the possible effect of inflation or deflation;

(5) the expected total return from income and the appreciation of investments;

(6) other resources of the institution; and

(7) the investment policy of the institution.

(b) To limit the authority to appropriate for expenditure or accumulate under subsection (a), a gift instrument must specifically state the limitation.

(c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only “income”, “interest”, “dividends”, or “rents, issues, or profits”, or “to preserve the principal intact”, or words of similar import:

(1) create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and

(2) do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a).
Ala. Code § 19-3-280 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-280
Section 19-3-280 Unproductive Estate
Status: reserved

Repealed by Act 2000-675, § 2, and Act 2001-344, § 1, effective January 1, 2001.
Ala. Code § 19-3-107 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-107
Section 19-3-107 Framing Relief so as to Render Trust Effectual
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3-123 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-123
Section 19-3-123 Mortgages Insured by Secretary of Housing and Urban Development - Investment
Status: in_force

It shall be lawful for trustees, executors, administrators, guardians and other fiduciaries to invest their funds and the moneys in their custody or possession eligible for investment in mortgages which have been accepted for insurance by the secretary of housing and urban development or his predecessor officer pursuant to Title 2 of the National Housing Act.

No law of this state requiring security upon which loans or investments may be made or prescribing the nature, amount or form of such security or prescribing or limiting the period for which loans or investments may be made shall be deemed to apply to loans or investments made pursuant to the foregoing paragraph.
Ala. Code § 19-3B-415 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-415
Section 19-3B-415 Reformation to Correct Mistakes
Status: in_force

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor’s intention if it is proved by clear and convincing evidence that both the settlor’s intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.
Ala. Code § 19-4-41 — Alabama Code / Title 19 / Chapter 4 / Section 19-4-41
Section 19-4-41 Deposit of Treasury Securities in Federal Reserve Banks Authorized; Transfer of Ownership, Etc., of Securities; Maintenance of Records as to Fiduciary Accounts; Rules and Regulations Governing Banks; Certification of Securities Deposited for Fiduciary Accounts
Status: in_force

(a) Notwithstanding any other provision of law to the contrary, any bank holding treasury securities as a fiduciary, as a cofiduciary or as a custodian or agent for another fiduciary or fiduciaries is authorized, in the absence of specific provision to the contrary in the governing instrument or court order under which the bank is acting, to deposit or arrange for the deposit with the federal reserve bank in its district of such treasury securities to be credited to one or more accounts on the books of said federal reserve bank in the name of such bank to be designated trust or other accounts in accordance with rules and regulations of the federal reserve bank, to which similar treasury securities deposited by the bank for other fiduciary accounts may be credited.

(b) Ownership of and other interest in such treasury securities may be transferred by entries on the books of said federal reserve bank without physical delivery thereof.

(c) In the event the bank holds treasury securities as a cofiduciary, the bank before acting under the authority contained in this section must have the written consent of its cofiduciary, who is hereby authorized to give such consent.

(d) When acting under the authority contained in this section, the records of the bank shall at all times show the fiduciary accounts for which such treasury securities are deposited and the ownership of such treasury securities in each fiduciary account.

(e) A bank, when acting under the authority herein contained, shall be subject to such rules and regulations as, in the case of banks or trust companies organized and existing under the laws of Alabama, the Superintendent of Banks and, in the case of national banking associations, the Comptroller of the Currency, may from time to time issue.

(f) A bank shall, upon demand by any person to whom it has a duty to account with respect to a fiduciary account, certify in writing the treasury securities deposited by it with the federal reserve bank for that fiduciary account.
Ala. Code § 19-2-5 — Alabama Code / Title 19 / Chapter 2 / Section 19-2-5
Section 19-2-5 Bond
Status: in_force

Unless exempted from so doing by law or trust instrument every fiduciary appointed by the court must give bond, before entering upon the discharge of his duties, in the amount and conditioned and payable as required by the law applicable to his fiduciary office.
Ala. Code § 19-3B-809 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-809
Section 19-3B-809 Control and Protection of Trust Property
Status: in_force

A trustee shall take reasonable steps to take control of and protect the trust property.
Ala. Code § 19-3-85 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-85
Section 19-3-85 Filing and Recordation of Probate Judge’s Report
Status: in_force

The probate judge shall file such statement in his court within the first 10 days of January of each year and record the same in a book kept for that purpose, which book shall be open to the inspection of the public.
Ala. Code § 19-3B-412 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-412
Section 19-3B-412 Modification or Termination Because of Unanticipated Circumstances or Inability to Administer Trust Effectively
Status: in_force

(a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor’s probable intention.

(b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust’s administration.

(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
Ala. Code § 19-5-6 — Alabama Code / Title 19 / Chapter 5 / Section 19-5-6
Section 19-5-6 Division of Qualified Terminable Interest Property Trust into Separate Share Trusts to Effectuate Allocation of Grantor’s, Decedent’s, or Surviving Spouse’s Gst Exemption; Payment of Estate Taxes
Status: in_force

When a grantor or decedent transfers property into a trust for which an election is made or to be made pursuant to Section 2056(b)(7) or 2523(f) of the Internal Revenue Code to treat such property as qualified terminable interest property (the “QTIP trust”), and when a grantor or fiduciary makes an election pursuant to Section 2652(a)(3) of the Internal Revenue Code to have the grantor or decedent creating such QTIP trust deemed to be the transferor of a portion, but not all, of such QTIP trust for GST purposes, and when a grantor or fiduciary makes an allocation pursuant to Section 2631 of the Internal Revenue Code of any portion of such grantor’s or decedent’s GST exemption to such portion of the QTIP trust for which a Section 2652(a)(3) election is made or to be made, or to property passing from such portion of the QTIP trust to a trust or person that is a remainder beneficiary of such portion of the QTIP trust at the death of the surviving spouse of the grantor or decedent, and when the instrument creating the QTIP trust does not specifically prohibit a fiduciary from dividing such QTIP trust into separate share trusts, a fiduciary shall divide such QTIP trust into two or more separate share trusts, one of which shall be equal to that portion of the QTIP trust for which a Section 2652(a)(3) election is made or to be made, and the other one or more share trusts shall be divided in such manner as the fiduciary deems appropriate either (1) to effectuate and carry out the allocation of the grantor’s or decedent’s GST exemption to such portion of the QTIP trust for which a Section 2652(a)(3) election is made, or to property passing from such portion of the QTIP trust to a trust or person that is a remainder beneficiary of such portion of the QTIP trust at the death of the surviving spouse, or (2) to effectuate and carry out the allocation of the surviving spouse’s GST exemption to one or more of the share trusts created from the QTIP trust, or to property passing from such one or more share trusts to a trust or person that is a remainder beneficiary of such share trust(s) at the death of the surviving spouse. Upon the death of the surviving spouse of the grantor or decedent, the fiduciary shall pay the estate taxes attributable to the share trust(s) to which an allocation of the GST exemption is made from any other share trust created hereunder to which no GST exemption is allocated, or from one of the other share trusts created hereunder, unless the trust instrument or the will of the surviving spouse specifically provides otherwise; provided, however, that to the extent possible, estate taxes shall not be paid in the manner provided above if to do so could result in an increase in the property subject to the GST on account of such payment of estate taxes. Other terms and provisions of each such separate share trust created from the QTIP trust shall, when taken together as a whole, be substantially identical to the original QTIP trust. In general, this section contemplates that a fiduciary will divide the original QTIP trust into two or more separate share trusts when it may be desirable to allocate both the GST exemption of the grantor or decedent and the GST exemption of the surviving spouse of such grantor or decedent to the original QTIP trust or a share thereof. Moreover, this section contemplates that a fiduciary will pay the estate taxes attributable to the original QTIP trust from a share trust to which no GST exemption is allocated unless to do so could result in an increase in the amount subject to the GST of a share trust to which a GST exemption is allocated.
Ala. Code § 19-3C-7 — Alabama Code / Title 19 / Chapter 3C / Section 19-3C-7
Section 19-3C-7 Reviewing Compliance
Status: in_force

Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.
Ala. Code § 19-3-253 — Alabama Code / Title 19 / Chapter 3 / Section 19-3-253
Section 19-3-253 Representative of Deceased Sole Trustee to Settle with Succeeding Trustee
Status: reserved

Repealed by Act 2006-216, p. 314, §5, effective January 1, 2007.
Ala. Code § 19-3B-810 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-810
Section 19-3B-810 Recordkeeping and Identification of Trust Property
Status: in_force

(a) A trustee shall keep adequate records of the administration of the trust.

(b) A trustee shall keep trust property separate from the trustee’s own property.

(c) Except as otherwise provided in subsection (d), a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.

(d) If the trustee maintains records clearly indicating the respective interests, then a trustee may invest as a whole the property of two or more separate trusts.
Ala. Code § 19-3B-201 — Alabama Code / Title 19 / Chapter 3B / Section 19-3B-201
Section 19-3B-201 Role of Court in Administration of Trust
Status: in_force

(a) The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law.

(b) A trust is not subject to continuing judicial supervision unless ordered by the court.

(c) A judicial proceeding involving a trust may relate to any matter involving the trust’s administration, including a request for instructions and an action to declare rights.

(d) A judicial proceeding involving a trust may relate to any matter involving the trust’s administration, including, but not being limited to a proceeding to:

(1) request instructions;

(2) determine the existence or nonexistence of any immunity, power, privilege, duty or right;

(3) approve a nonjudicial settlement;

(4) interpret or construe the terms of the trust;

(5) determine the validity of a trust or of any of its terms;

(6) approve a trustee’s report or accounting or compel a trustee to report or account;

(7) direct a trustee to refrain from performing a particular act or grant to a trustee any necessary or desirable power;

(8) review the actions or approve the proposed actions of a trustee, including the exercise of a discretionary power;

(9) accept the resignation of a trustee;

(10) appoint or remove a trustee;

(11) determine a trustee’s compensation;

(12) transfer a trust’s principal place of administration or a trust’s property to another jurisdiction;

(13) determine the liability of a trustee for an action relating to the trust and compel redress of a breach of trust by any available remedy;

(14) modify or terminate a trust;

(15) combine trusts or divide a trust;

(16) determine liability of a trust for debts of a beneficiary and living settlor;

(17) determine liability of a trust for debts, expenses of administration, and statutory allowances chargeable against the estate of a deceased settlor;

(18) determine the liability of a trust for claims, expenses and taxes in connection with the settlement of a trust that was revocable at the settlor’s death; and

(19) ascertain beneficiaries and determine to whom property will pass upon final or partial termination of a trust.