SB251 Alabama 2012 Session

Updated Jul 25, 2021

Summary

Primary Sponsor: Cam Ward
Republican
Co-Sponsors: Arthur Orr Mark Slade Blackwell
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: 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.
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.
Subjects: Banks and Banking

Indefinitely Postponed

Pending third reading on day 8 Favorable from Finance and Taxation Education with 1 amendment

Read for the second time and placed on the calendar 1 amendment

Read for the first time and referred to the Senate committee on Finance and Taxation Education