SB227 Alabama 2018 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

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

This bill creates the Alabama Uniform Trust Decanting Act, giving certain fiduciaries the power to move assets from an existing trust to a new trust or change its terms while protecting the settlor’s goals and beneficiaries.

What This Bill Does

It authorizes authorized fiduciaries to decant a first trust by distributing property to a second trust or by modifying the first trust, as long as the material purposes are carried out and beneficiaries are protected. It sets fiduciary duties, procedures, and notice requirements for exercising this power, and allows court or Attorney General involvement in certain cases. It imposes limits to safeguard charitable interests, animal trusts, and tax benefits, while providing rules for special trusts and later-discovered property; the act becomes effective January 1, 2019.

Who It Affects

• Authorized fiduciaries (trustees and special fiduciaries) who would exercise the decanting power to modify a trust or move assets to a second trust.
• Beneficiaries and charitable interests of trusts (including the Attorney General in matters involving charitable interests) who are protected by notice requirements, potential court oversight, and restrictions on decanting.

Key Provisions

• Creates the Alabama Uniform Trust Decanting Act and grants authorized fiduciaries the power to decant a first trust to a second trust or modify terms while preserving the settlor’s material purposes and protecting beneficiaries.
• Establishes fiduciary duties and procedural rules for exercising the decanting power, including record-keeping and a notice process that starts when notice is given and typically lasts 59 days, with a 60-day waiting period before action (except when waived).
• Imposes safeguards and limitations, such as prohibiting decanting when the first trust restricts it, protecting charitable interests and animal trusts, and applying tax-related limitations to preserve deductions, exemptions, and other benefits.
• Addresses special cases (animal trusts, special-needs trusts) and sets rules for the duration of second trusts, later-discovered property, liability, indemnification, and potential court involvement to supervise or approve decanting actions.

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