reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-602 - Revocation or Amendment of Revocable Trust.

Section 19-3B-602
Revocation or amendment of revocable trust.
(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(g) A trustee who does not have actual knowledge that a trust has been revoked or amended is not liable to the settlor or settlor's successors in interest for distributions made and other actions taken on the assumption that the trust had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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-603 - Settlor's Powers; Powers of Withdrawal.

Section 19-3B-603
Settlor's powers; powers of withdrawal.
(a) While a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
(b) During the period the power may be exercised, the holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-604 - Limitation on Action Contesting Validity of Revocable Trust; Distribution of Trust Property.

Section 19-3B-604
Limitation on action contesting validity of revocable trust; distribution of trust property.
(a) A person may commence a judicial proceeding to contest the validity of all or part of the terms of a trust that was revocable at the settlor's death within the earlier of:
(1) two years after the settlor's death; or
(2) six months after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding.
(b) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:
(1) the trustee has actual knowledge of a pending judicial proceeding contesting the validity of all or part of the terms of the trust; or
(2) if, prior to the trustee's actual distribution, a potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 60 days after the contestant sent the notification.
(c) A beneficiary of a trust that is determined to have been invalid in whole or in part is liable to return any distribution received to the extent that the invalidity applies to the distribution.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-701 - Accepting or Declining Trusteeship.

Section 19-3B-701
Accepting or declining trusteeship.
(a) Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship:
(1) by substantially complying with a method of acceptance 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 accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(c) A person designated as trustee, without accepting the trusteeship, may:
(1) act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and
(2) inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-702 - Trustee's Bond.

Section 19-3B-702
Trustee's bond.
(a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(b) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-703 - Co-Trustees.

Section 19-3B-703
Co-trustees.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-704 - Vacancy in Trusteeship; Appointment of Successor.

Section 19-3B-704
Vacancy in trusteeship; appointment of successor.
(a) A vacancy in a trusteeship occurs if:
(1) a person designated as trustee rejects the trusteeship;
(2) a person designated as trustee cannot be identified or does not exist;
(3) a trustee resigns;
(4) a trustee is disqualified or removed;
(5) a trustee dies; or
(6) a guardian or conservator is appointed for an individual serving as trustee.
(b) If one or more co-trustees remain in office, then a vacancy in a trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.
(c) A vacancy in a trusteeship of a noncharitable trust that is required to be filled must be filled in the following order of priority:
(1) by a person designated in the terms of the trust to act as successor trustee;
(2) by a person appointed by unanimous agreement of the adult qualified beneficiaries and any entity which is a qualified beneficiary; or
(3) by a person appointed by the court.
(d) A vacancy in a trusteeship of a charitable trust that is required to be filled must be filled in the following order of priority:
(1) by a person designated in the terms of the trust to act as successor trustee;
(2) by a person selected by the charitable organizations expressly designated to receive distributions under the terms of the trust; or
(3) by a person appointed by the court.
(e) A vacancy in a trusteeship of a trust that is both noncharitable and charitable and that is required to be filled must be filled in the following order of priority:
(1) by a person designated in the terms of the trust to act as successor trustee;
(2) by a person appointed by unanimous agreement of the adult qualified beneficiaries, any entity which is a qualified beneficiary and the charitable organizations expressly designated to receive distributions under the terms of the trust; or
(3) by a person appointed by the court.
(f) If a person is acting as the sole trustee of a trust and if there is no provision in the trust for a successor trustee, then the sole trustee and the adult qualified beneficiaries, by unanimous written agreement, may designate a successor trustee, which shall become trustee of the trust upon the vacancy in the trusteeship. The agreement may be recorded in the probate court or filed in the records of the trust.
(g) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-705 - Resignation of Trustee.

Section 19-3B-705
Resignation of trustee.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-706 - Removal of Trustee.

Section 19-3B-706
Removal of trustee.
(a) The settlor, a co-trustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
(b) The court may remove a trustee if:
(1) the trustee has committed a serious breach of trust;
(2) lack of cooperation among co-trustees substantially impairs the administration of the trust;
(3) because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or
(4)(A) there has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries;
(B) the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust; and
(C) a suitable co-trustee or successor trustee is available.
(c) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under Section 19-3B-1001(b) as may be necessary to protect the trust property or the interests of the beneficiaries.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-707 - Delivery of Property by Former Trustee.

Section 19-3B-707
Delivery of property by former trustee.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-708 - Compensation of Trustee.

Section 19-3B-708
Compensation of trustee.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-709 - Reimbursement of Expenses.

Section 19-3B-709
Reimbursement of expenses.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-801 - Duty to Administer Trust.

Section 19-3B-801
Duty to administer trust.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with the terms of the trust and its purposes and the interests of the beneficiaries, and in accordance with this chapter.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-803 - Impartiality.

Section 19-3B-803
Impartiality.
If a trust has two or more beneficiaries, then the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests and the purposes of the trust.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-804 - Prudent Administration.

Section 19-3B-804
Prudent administration.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-805 - Costs of Administration.

Section 19-3B-805
Costs of administration.
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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-806 - Trustee's Skills.

Section 19-3B-806
Trustee's skills.
A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-807 - Delegation by Trustee.

Section 19-3B-807
Delegation by trustee.
(a) A trustee may delegate duties and powers that a prudent trustee could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(1) selecting an agent;
(2) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(3) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care, skill, and caution to comply with the terms of the delegation.
(c) A trustee who complies with subsection (a) is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(d) By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-808 - Powers to Direct.

Section 19-3B-808
Powers to direct.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-809 - Control and Protection of Trust Property.

Section 19-3B-809
Control and protection of trust property.
A trustee shall take reasonable steps to take control of and protect the trust property.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-810 - Recordkeeping and Identification of Trust Property.

Section 19-3B-810
Recordkeeping and identification of trust property.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-811 - Enforcement and Defense of Claims.

Section 19-3B-811
Enforcement and defense of claims.
A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-812 - Collecting Trust Property.

Section 19-3B-812
Collecting trust property.
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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-814 - Discretionary Powers; Tax Savings.

Section 19-3B-814
Discretionary powers; tax savings.
(a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
(b) Subject to subsection (d), and unless the terms of the trust expressly indicate that a rule in this subsection does not apply:
(1) a person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard; and
(2) a trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.
(c) A power whose exercise is limited or prohibited by subsection (b) may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, then the court may appoint a special fiduciary with authority to exercise the power.
(d) Subsection (b) does not apply to:
(1) a power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in Section 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986, as in effect on January 1, 2007, or as later amended, was previously allowed;
(2) any trust during any period that the trust may be revoked or amended by its settlor; or
(3) a trust if contributions to the trust qualify for the annual exclusion under Section 2503(c) of the Internal Revenue Code of 1986, as in effect on January 1, 2007, or as later amended.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-815 - General Powers of Trustee.

Section 19-3B-815
General powers of trustee.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-817 - Distribution Upon Termination.

Section 19-3B-817
Distribution upon termination.
(a) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within 30 days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.
(b) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.
(c) A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent:
(1) it was induced by improper conduct of the trustee; or
(2) the beneficiary, at the time of the release, 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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-818 - Life Insurance Policies Held by Trustee.

Section 19-3B-818
Life insurance policies held by trustee.
A trustee may retain any life insurance policy contributed to a trust by a settlor, or purchased by the trustee upon the request of the settlor, as an asset of the trust without regard to any lack of diversification caused thereby and without regard to the terms and conditions of the life insurance policy. The trustee shall not be liable for lack of diversification to any beneficiary of a trust for the trustee's retention of the life insurance policy.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-901 - Prudent Investor Rule.

Section 19-3B-901
Prudent investor rule.
(a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this article.
(b) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the terms of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the terms of the trust.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-902 - Standard of Care; Portfolio Strategy; Risk and Return Objectives.

Section 19-3B-902
Standard of care; portfolio strategy; risk and return objectives.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-903 - Diversification.

Section 19-3B-903
Diversification.
(a) A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
(b) In the absence of an express provision to the contrary in the terms of the trust, a trustee without liability, may continue to hold property received into the trust at its inception or subsequently added to it or acquired pursuant to proper authority if and so long as the trustee, in the exercise of good faith and of reasonable prudence, considers the retention to be in the best interest of the trust or in furtherance of the purposes of the trust. The property shall include any successor-in-interest to the original property. The property may also include, among other things, stock in the trustee if a corporation and stock in any corporation controlling, controlled by, or under common control with the trustee.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-904 - Duties at Inception of Trusteeship.

Section 19-3B-904
Duties at inception of trusteeship.
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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-905 - Reviewing Compliance.

Section 19-3B-905
Reviewing compliance.
Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight. The prudent investor rule does not guarantee a specific outcome or performance, but is a standard of conduct.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-906 - Language Invoking Standard of Prudent Investor Rule.

Section 19-3B-906
Language invoking standard of prudent investor rule.
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."
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1001 - Remedies for Breach of Trust.

Section 19-3B-1001
Remedies for breach of trust.
(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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1002 - Damages for Breach of Trust.

Section 19-3B-1002
Damages for breach of trust.
(a) A trustee who commits a breach of trust is liable to the beneficiaries affected for:
(1) the greater of:
(i) the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or
(ii) the profit the trustee made by reason of the breach;
(2) any measure of damage otherwise provided by law.
(b) Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1003 - Damages in Absence of Breach.

Section 19-3B-1003
Damages in absence of breach.
(a) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust.
(b) Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1005 - Limitation of Action Against Trustee.

Section 19-3B-1005
Limitation of action against trustee.
(a) A beneficiary may not commence a proceeding against a trustee for breach of trust more than two years after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust. For purposes of this section, a report is an account statement or other form of written disclosure made by the trustee to the beneficiary.
(b) A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.
(c) If subsection (a) does not apply, then a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within two years after the first to occur of the following:
(1) The removal, resignation, or death of the trustee;
(2) The termination of the beneficiary's interest in the trust; or
(3) The termination of the trust.
(Act 2006-216, p. 314, §1; Act 2021-384, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1006 - Reliance on Trust Instrument.

Section 19-3B-1006
Reliance on trust instrument.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1007 - Event Affecting Administration or Distribution.

Section 19-3B-1007
Event affecting administration or distribution.
If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, then a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1008 - Exculpation of Trustee.

Section 19-3B-1008
Exculpation of trustee.
(a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:
(1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or
(2) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
(b) Except for terms intended to provide protection for carrying out a stated trust purpose, an exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1009 - Beneficiary's Consent, Release, or Ratification.

Section 19-3B-1009
Beneficiary's consent, release, or ratification.
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.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1010 - Limitation on Personal Liability of Trustee.

Section 19-3B-1010
Limitation on personal liability of trustee.
(a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
(b) A trustee is personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, but only if the trustee, the trustee's employee, or the trustee's agent is personally at fault.
(c) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1011 - Interest as General Partner.

Section 19-3B-1011
Interest as general partner.
(a) Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to Chapter 8A or Chapter 9B of Title 10.
(b) Except as otherwise provided in subsection (c), a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault.
(c) The immunity provided by this section does not apply if an interest in the partnership is held by the trustee in a capacity other than that of trustee or is held by the trustee's spouse or one or more of the trustee's descendants, siblings, or parents, or the spouse of any of them.
(d) If the trustee of a revocable trust holds an interest as a general partner, then the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.
(Act 2006-216, p. 314, §1.)
2023 Code of Alabama › Title 19 - Fiduciaries and Trusts. › Chapter 3B - Alabama Uniform Trust Code. › Section 19-3B-1012 - Protection of Person Dealing With Trustee.

Section 19-3B-1012
Protection of person dealing with trustee.
(a) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.
(b) A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
(c) A person who in good faith delivers assets to a trustee need not ensure their proper application.
(d) A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(e) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
(Act 2006-216, p. 314, §1.)