HB163 Alabama 2018 Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

Regular Session 2018

Title

Trusts, Uniform Trust Decanting Act, enacted, decanting power of fiduciaries of certain trusts to distribute assets of the trusts to other trusts, fiduciary duties, procedures, notice, limitations, trusts for the care of animals, authorized

Summary

HB 163 creates the Alabama Uniform Trust Decanting Act, allowing authorized fiduciaries to move assets from an existing trust to a new one or modify the terms, while preserving the settlor's goals and protecting beneficiaries.

What This Bill Does

The act lets authorized fiduciaries decant a first trust by distributing assets to a second trust or by changing the first trust's terms, as long as the material purposes are carried out and beneficiaries are protected. It establishes fiduciary duties, procedures, and notice requirements for exercising decanting power, including a lengthy notice period and potential involvement from the court or Attorney General in certain cases. It also includes safeguards and limitations, such as protections for animal trusts and charitable interests, and it applies to most non-charitable trusts created in Alabama.

Who It Affects

• Authorized fiduciaries (trustees or special fiduciaries) who would gain decanting authority and must follow new duties, procedures, and notice requirements.
• Beneficiaries of the trusts (current and qualified beneficiaries, including those in special-needs or animal trusts) and charitable interests, who may see changes to distributions and must be notified and protected.

Key Provisions

• Decanting power: authorized fiduciaries may distribute part or all of the first trust's principal to one or more second trusts or modify the first trust, while carrying out the material purposes of the settlor.
• Notice, duties, and safeguards: requires notice to interested parties, defines fiduciary duties, sets procedures for exercising decanting, allows possible court or Attorney General involvement, and imposes limits to protect charitable interests and tax rules (including animal and special-needs trusts).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Trusts