SB11 Alabama 2023 Session

Summary

Primary Sponsor

Will BarfootSenator

Republican

Session

Regular Session 2023

Title

Relating to the Alabama Uniform Trust Code; to amend Section 19-3B-414, Code of Alabama 1975, to further provide for the modification or termination of an uneconomic trust.

Summary

SB11 raises the uneconomic trust termination threshold to $100,000 and ties future thresholds to the Consumer Price Index, with immediate effect.

What This Bill Does

It lets a trustee terminate a trust with total value under $100,000 if the value isn’t enough to justify ongoing administration costs. Beginning in 2024, the threshold can go up or down each year based on the CPI, using 2022 CPI-U as the base, with changes rounded to the nearest $100. After notice to qualified beneficiaries, the court may modify or terminate the trust or remove the trustee if the value still isn’t enough to justify administration, and the trustee must distribute the trust property to align with the trust’s purposes. This provision does not apply to conservation or preservation easements.

Who It Affects

• Trustees: gain the ability to terminate more uneconomic trusts (now up to $100,000) and must provide notice to qualified beneficiaries before termination.
• Qualified beneficiaries: must be notified before termination and are affected by how the remaining trust property is distributed after termination.

Key Provisions

• Raises the uneconomic trust termination threshold from $50,000 to $100,000.
• Allows the threshold to be increased or decreased in future years based on the Consumer Price Index (C.P.I.), starting in 2024.
• Base index is CPI-U for 2022; annual adjustments are published by the State Treasurer and involve rounding to the nearest $100.
• For 2023, the $100,000 threshold applies to trusts during the 2023 calendar year.
• If the court determines the value is insufficient to justify administration costs, it may modify or terminate the trust or remove the trustee.
• Upon termination, the trustee must distribute the trust property in a manner consistent with the trust’s purposes.
• Not applicable to easements for conservation or preservation.
• The act becomes effective immediately after passage.

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

Subjects

Alabama Uniform Trust Code; modification or termination of an uneconomic trust, further provided.