HB196 Alabama 2021 Session

Sponsors

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.

Description

Under the Alabama Uniform Trust Decanting Act, after giving statutorily required notice to certain persons, an authorized fiduciary of a trust may exercise decanting power without the consent of any person and without court approval under certain conditions. A person entitled to notice or a beneficiary of the trust may challenge the exercise of the decanting power by the authorized fiduciary if the challenge is commenced within six months from the date notice is given and it is alleged that the proposed or attempted exercise of the decanting power did not comply with the law or was an abuse of the authorized fiduciary's discretion or a breach of fiduciary duty

Also under existing law, failure to receive notice as required does not extend the notice period if the authorized fiduciary acted with reasonable diligence to comply with the legal requirements of the Uniform Trust Decanting Act

This bill would clarify that failure to receive notice of the exercise of the decanting power by the authorized fiduciary does not extend the requirement to commence a challenge within six months if the authorized fiduciary acted with reasonable diligence to comply with the requirements of the act

Relating to the Alabama Uniform Trust Decanting Act; to amend Sections 19-3D-7 and 19-3D-9, Code of Alabama 1975, to provide further for the failure to receive notice.

Subjects

Trusts