HB196 Alabama 2021 Session

Summary

Primary Sponsor

Matt SimpsonRepresentative

Republican

Session

Regular Session 2021

Title

Trusts, Alabama Uniform Trust Decanting Act, failure to receive notice further provided, Secs. 19-3D-7, 19-3D-9 am'd.

Summary

This bill clarifies notice rules and time limits for decanting trusts under Alabama's Uniform Trust Decanting Act, especially when someone did not receive notice.

What This Bill Does

It amends Sections 19-3D-7 and 19-3D-9 to specify how long notice lasts and when decanting can occur; it requires at least a 60-day waiting period after notice before a fiduciary may decant, and it allows the six-month challenge window to start from the date notice is given. It also says that if a beneficiary did not receive notice but the fiduciary acted with reasonable diligence, that non-receipt does not extend the challenge deadline. Beneficiaries and other notice recipients still have the right to challenge a decanting for noncompliance, abuse of discretion, or fiduciary breach within six months.

Who It Affects

• Beneficiaries and other persons entitled to notice: their right to challenge is tied to the date notice is given, and failure to receive notice does not extend the challenge period if the fiduciary acted diligently.
• Authorized fiduciaries (trustees) and other parties administering the trust: they must provide notice to specified interested parties and cannot decant until after the 60-day waiting period unless waivers are signed; they may face court rulings or special fiduciaries if challenged.

Key Provisions

• Clarifies that failure to receive notice does not extend the six-month challenge period if the fiduciary acted with reasonable diligence to comply with the act.
• Defines the notice timing: the notice period begins when notice is given and ends 59 days later, creating a 60-day window before decanting.
• Requires notice to specified parties (including settlors, qualified beneficiaries, holders of powers of appointment, fiduciaries, and the Attorney General) and allows waiver of the notice period by all recipients to permit earlier decanting.
• Maintains court options under Section 19-3D-9, including instructions, appointment of a special fiduciary, approval of decanting, or declaring an exercise ineffective when not compliant or when there is abuse or breach.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Trusts