SB35 Alabama 2021 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

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 act updates Alabama's Uniform Trust Decanting Act to clarify and strengthen notice requirements and procedures when decanting a trust.

What This Bill Does

It changes the timing of notice for decanting, requiring a 60-day waiting period after notice before decanting can start (with a 59-day notice period). It specifies who must be notified (settlor, qualified beneficiaries, holders of powers of appointment, removal-right holders, other fiduciaries, second-trust fiduciaries, and the Attorney General in applicable cases) and allows notice to be given to a minor or incapacitated beneficiary via their representative. It requires notice to include how the decanting will be done, the proposed date, copies of the relevant trust instruments, the recipient's capacity, and a six-month deadline to file an application under Section 19-3D-9; it also allows waiving the waiting period by signed record and allows for court involvement if disputes arise. It clarifies that failure to receive notice does not automatically invalidate the decanting if reasonable care was used, and it preserves the court’s authority to provide instructions or other remedies.

Who It Affects

• Authorized fiduciaries and trustees who perform decanting: must follow the new notice timing, content, and waiver rules; must consider court oversight if disputes arise.
• Beneficiaries, settlors, holders of powers of appointment, removal-right holders, other fiduciaries of the first and second trusts, and the Attorney General (when applicable): are entitled to notice, may be involved in or challenge the decanting process, and have a six-month window to pursue related actions.

Key Provisions

• Notice timing: a notice period begins when notice is given and lasts 59 days; decanting cannot start until at least 60 days after notice, unless all notice recipients waive the period in a signed record.
• Notice recipients: requires notice to the settlor (if living), qualified beneficiaries, holders of a presently exercisable power of appointment, anyone who can remove or replace the fiduciary, other fiduciaries of the first trust, fiduciaries of the second trust, and the Attorney General when applicable.
• Notice content: must include how the decanting will be done, the proposed effective date, copies of the first-trust instrument and all second-trust instruments, the recipient’s capacity, and a six-month deadline to file an application under Section 19-3D-9.
• Effect of non-receipt: failure to receive notice does not automatically invalidate the decanting if the fiduciary acted with reasonable care; court may provide instructions, appoint a special fiduciary, approve or invalidate actions, and address remedies under the act.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Trusts