HB474 Alabama 2021 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Merika ColemanSenator
Democrat
Session: Regular Session 2021
Title: Trusts, Alabama Uniform Trust Code, reports of breaches of trust, further provided, procedure for release of trustee, provided, Sec. 19-3B-1306 added; Sec. 19-3B-1005 am'd.
Summary: This bill updates the Alabama Uniform Trust Code to clarify reporting to beneficiaries and add a formal process for trustees to be released from duties when a trust ends or a trustee resigns or is removed.
What This Bill Does
Defines what counts as a report and sets a two-year deadline for beneficiaries to sue for breach of trust after receiving a report that reveals a potential claim, with 'report' including account statements or other written disclosures. Adds a new discharge process (Section 19-3B-1306) requiring trustees to provide beneficiaries and successor trustees with asset values, a two-year accounting, estimates of future receipts or disbursements, remaining fees, notice of termination or discharge window, and contact information. Gives beneficiaries a 45-day window to object; if no objections, the trustee distributes assets and claims against the trustee may be barred; if objections exist, parties may go to court or use a nonjudicial settlement, with possible releases or indemnities and trust-covered expenses. Establishes that after resolution and distribution, those who consented or did not object are barred from certain claims, and the court has exclusive jurisdiction for related matters; the act becomes effective January 1, 2022.

Who It Affects
Beneficiaries of Alabama trusts, who gain a defined two-year window to pursue breach-of-trust claims after receiving a report and participate in the discharge process by reviewing information and raising objections if needed.
Trustees (and successor trustees), who must provide detailed information and notices when terminating, resigning, or being removed, and who must follow a structured process to obtain release from duties, including potential court or nonjudicial resolution of objections.

Key Provisions
Defines 'report' to include an account statement or other form of written disclosure made by the trustee to the beneficiary.
A beneficiary may not commence a breach-of-trust proceeding more than two years after the date they (or their representative) were sent a report disclosing the existence of a potential claim.
A report adequately discloses the existence of a potential claim if it provides sufficient information for the beneficiary to know of the claim or to inquire into its existence.
Adds Section 19-3B-1306 to provide a procedure for the release of a trustee from duties, including termination, resignation, removal, or interim accounting requests.
Requires trustees to provide beneficiaries and successor trustees with: asset values, a two-year accounting, estimates of anticipated receipts/disbursements, remaining fees, termination/discharge notices, and contact information; notices must be delivered under existing notification rules.
If objections are raised within 45 days, the matter may be brought to court or resolved via a nonjudicial settlement; if no objections are raised, the trustee distributes assets and claims against the trustee may be barred as if a final order were issued.

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