HB222 Alabama 2012 Session

Sponsors

Session

Regular Session 2012

Title

Trusts, Principal and Income Act, Uniform Law, amend to update, distribution of trusts further provided for, Sec. 19-3A-409, 19-3A-505 am'd; Sec. 19-3A-607 added

Description

<p class="bill_description"> Under existing law, the Alabama Principal and Income Act, which is based on the Uniform Principal and Income Act, provides procedures for the trustee of a trust to distinguish between the principal of a trust which is generally preserved for the remainder beneficiaries and the income of a trust which is distributed to the income beneficiaries</p><p class="bill_description"> This bill would amend the Alabama Principal and Income Act to incorporate changes in the Uniform Principal and Income Act. The bill would update the act to reflect current policy of the Internal Revenue Service and to clarify technical language regarding withholdings; clarify allocations of acquired assets, such as those from corporate distributions; include an "unincorporated entity" concept to deal with businesses operated by a trustee, including farming and livestock operations, and investment activities in rental real estate, natural resources, and timber; and conform the changes to the Alabama Uniform Prudent Investor Act, especially the provisions related to investing for total return instead of for a certain level of income</p><p class="bill_entitled_an_act"> Relating to trusts; to amend Sections 19-3A-409 and 19-3A-505 of the Code of Alabama 1975, relating to the Alabama Principal and Income Act, to further distinguish between the principal of a trust and the distribution of income from a trust; and to add Section 19-3A-607 to the Code of Alabama 1975, to provide for certain transitional matters in the application of the changes by this act. </p>

Subjects

Banks and Banking