Code of Alabama - Title 19: Fiduciaries and Trusts - Chapter 3B - Alabama Uniform Trust Code

• Section 19-3B-101 Short title
  This chapter may be cited as the Alabama Uniform Trust Code.
• Section 19-3B-102 Scope
  This chapter applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be...
• Section 19-3B-103 Definitions
  In this chapter: (1) ACTION, with respect to an act of a trustee, includes a failure to act. (2) ASCERTAINABLE STANDARD means a standard relating...
• Section 19-3B-104 Knowledge
  (a) Subject to subsection (b), a person has knowledge of a fact if the person: (1) has actual knowledge of it; (2) has received a...
• Section 19-3B-105 Default and mandatory rules
  (a) Except as otherwise provided in the terms of the trust, this chapter governs the duties and powers of a trustee, relations among trustees, and...
• Section 19-3B-106 Common law of trusts; principles of equity
  The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this
• Section 19-3B-107 Governing law
  The meaning and effect of the terms of a trust are determined by: (1) the law of the jurisdiction designated in the terms unless the...
• Section 19-3B-108 Principal place of administration
  (a) Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are...
• Section 19-3B-109 Methods and waiver of notice
  (a) Notice to a person under this chapter or the transmission of information to a person under this chapter must be accomplished in a manner...
• Section 19-3B-110 Others treated as qualified beneficiaries
  (a) Whenever notice to qualified beneficiaries of a trust is required under this chapter, the trustee must also give notice to any other beneficiary who...
• Section 19-3B-111 Nonjudicial settlement agreements
  (a) For purposes of this section, "interested persons" means persons whose consent would be required in order to achieve a binding settlement were the settlement...
• Section 19-3B-112 Rules of construction
  Except as otherwise provided in this chapter, the rules of construction under Title 43, Chapter 8, Article 8, and the miscellaneous provisions of Article 9...
• Section 19-3B-201 Role of court in administration of trust
  (a) The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided...
• Section 19-3B-202 Jurisdiction over trustee and beneficiary
  (a) A trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving a trust: (1) by accepting the trusteeship...
• Section 19-3B-203 Subject matter jurisdiction
  (a) Except as provided in subsection (b), the circuit court has exclusive jurisdiction of proceedings in this state brought by a trustee or beneficiary concerning...
• Section 19-3B-204 Venue
  (a) Except as otherwise provided in subsection (b), venue for actions and proceedings involving a trust is proper (i) in any county where venue is...
• Section 19-3B-205 Judicial accountings and settlements
  (a) A trustee may file an accounting of the trustee's administration of a trust in court at any time and seek a partial or final...
• Section 19-3B-301 Representation: Basic effect
  (a) Notice to a person who may represent and bind another person under this article has the same effect as if notice were given directly...
• Section 19-3B-302 Representation by holder of power of appointment
  (a) The holder of a lifetime power to appoint to oneself may represent and bind all persons whose interests are subject to the power, including...
• Section 19-3B-303 Representation by fiduciaries and ancestors
  To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a...
• Section 19-3B-304 Representation by person having substantially identical interest
  (a) Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be...
• Section 19-3B-305 Appointment of representative
  (a) If the court determines that an interest is not represented under this article, or that the otherwise available representation might be inadequate, then the...
• Section 19-3B-401 Methods of creating trust
  A trust may be created by: (1) transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition...
• Section 19-3B-402 Requirements for creation
  (a) A trust is created only if: (1) the settlor has capacity to create a trust; (2) the settlor indicates an intention to create the...
• Section 19-3B-403 Trusts created in other jurisdictions
  A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was...
• Section 19-3B-404 Trust purposes
  A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and...
• Section 19-3B-405 Charitable purposes; enforcement
  (a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal...
• Section 19-3B-406 Creation of trust induced by fraud, duress, or undue influence
  A trust is void to the extent its creation was induced by fraud, duress, or undue influence.
• Section 19-3B-407 Evidence of oral trust
  Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an...
• Section 19-3B-408 Trust for care of animal
  (a) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death...
• Section 19-3B-409 Noncharitable trust without ascertainable beneficiary
  Except as otherwise provided in Section 19-3B-408 or by another statute, the following rules apply: (1) A trust may be created for a noncharitable purpose...
• Section 19-3B-410 Modification or termination of trust; proceedings for approval or disapproval
  (a) In addition to the methods of termination prescribed by Sections 19-3B-411 through 19-3B-414, a trust terminates to the extent the trust is revoked or...
• Section 19-3B-411 Modification or termination of noncharitable irrevocable trust by consent
  (a) If, upon petition, the court finds that the settlor and all beneficiaries consent to the modification or termination of an irrevocable trust, the court...
• Section 19-3B-412 Modification or termination because of unanticipated circumstances or inability to administer trust effectively
  (a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the...
• Section 19-3B-413 Cy pres
  (a) Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (1) the trust does...
• Section 19-3B-414 Modification or termination of uneconomic trust
  (a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $50,000 may terminate...
• Section 19-3B-415 Reformation to correct mistakes
  The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by...
• Section 19-3B-416 Modification to achieve settlor's tax objectives
  To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's...
• Section 19-3B-417 Combination and division of trusts
  After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or...
• Section 19-3B-501 Rights of beneficiary's creditor or assignee
  To the extent a beneficiary's interest is not subject to a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to...
• Section 19-3B-502 Spendthrift provision
  (a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest. (b) A term of a trust...
• Section 19-3B-503 Exceptions to spendthrift provision
  (a) In this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state....
• Section 19-3B-504 Discretionary trusts; effect of standard
  (a) In this section, the terms "child", "spouse", or "former spouse" include any person for whom an order or judgment for child or spousal support...
• Section 19-3B-505 Creditor's claim against settlor
  (a) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: (1) During the lifetime of the settlor, the...
• Section 19-3B-506 Overdue distribution
  (a) In this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the...
• Section 19-3B-507 Personal obligations of trustee
  Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
• Section 19-3B-508 Qualified trusts under the Internal Revenue Code
  (a) As used in this section: (1) ASSIGNMENT or ALIENATION, and any conjugation thereof, includes any anticipation, assignment at law or in equity, alienation, attachment,...
• Section 19-3B-601 Capacity of settlor of revocable trust
  The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable...
• Section 19-3B-602 Revocation or amendment of revocable trust
  (a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does...
• Section 19-3B-603 Settlor's powers; powers of withdrawal
  (a) While a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively...
• Section 19-3B-604 Limitation on action contesting validity of revocable trust; distribution of trust property
  (a) A person may commence a judicial proceeding to contest the validity of all or part of the terms of a trust that was revocable...
• Section 19-3B-701 Accepting or declining trusteeship
  (a) Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship: (1) by substantially complying with a method of acceptance...
• Section 19-3B-702 Trustee's bond
  (a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect...
• Section 19-3B-703 Co-trustees
  (a) Co-trustees who are unable to reach a unanimous decision after consultation among all the co-trustees may act by majority decision. (b) If a vacancy...
• Section 19-3B-704 Vacancy in trusteeship; appointment of successor
  (a) A vacancy in a trusteeship occurs if: (1) a person designated as trustee rejects the trusteeship; (2) a person designated as trustee cannot be...
• Section 19-3B-705 Resignation of trustee
  (a) A trustee may resign: (1) upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and all co-trustees; or (2)...
• Section 19-3B-706 Removal of trustee
  (a) The settlor, a co-trustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court...
• Section 19-3B-707 Delivery of property by former trustee
  (a) Unless a co-trustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other...
• Section 19-3B-708 Compensation of trustee
  (a) If the terms of a trust do not specify the trustee's compensation, then a trustee is entitled to compensation that is reasonable under the...
• Section 19-3B-709 Reimbursement of expenses
  (a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate for: (1) expenses that were properly incurred in...
• Section 19-3B-801 Duty to administer trust
  Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with the terms of the trust and its purposes...
• Section 19-3B-802 Duty of loyalty
  (a) A trustee shall administer the trust solely in the interests of the beneficiaries. (b) Subject to the rights of persons dealing with or assisting...
• Section 19-3B-803 Impartiality
  If a trust has two or more beneficiaries, then the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard...
• Section 19-3B-804 Prudent administration
  A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In...
• Section 19-3B-805 Costs of administration
  In administering a trust, the trustee may incur costs that are reasonable in relation to the trust property, the purposes of the trust, and the...
• Section 19-3B-806 Trustee's skills
  A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or...
• Section 19-3B-807 Delegation by trustee
  (a) A trustee may delegate duties and powers that a prudent trustee could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill,...
• Section 19-3B-808 Powers to direct
  (a) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust. (b)...
• Section 19-3B-809 Control and protection of trust property
  A trustee shall take reasonable steps to take control of and protect the trust property.
• Section 19-3B-810 Recordkeeping and identification of trust property
  (a) A trustee shall keep adequate records of the administration of the trust. (b) A trustee shall keep trust property separate from the trustee's own...
• Section 19-3B-811 Enforcement and defense of claims
  A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
• Section 19-3B-812 Collecting trust property
  A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a...
• Section 19-3B-813 Duty to inform and report
  (a) Except as otherwise provided in Section 19-3B-603, the following rules apply: (1) A trustee shall keep the current permissible distributees of income or principal...
• Section 19-3B-814 Discretionary powers; tax savings
  (a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole,"...
• Section 19-3B-815 General powers of trustee
  (a) A trustee, without authorization by the court, may exercise: (1) powers conferred by the terms of the trust; and (2) except as limited by...
• Section 19-3B-816 Specific powers of trustee
  (a) Without limiting the authority conferred by Section 19-3B-815, a trustee may: (1) collect trust property and accept or reject additions to the trust property...
• Section 19-3B-817 Distribution upon termination
  (a) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary...
• Section 19-3B-818 Life insurance policies held by trustee
  A trustee may retain any life insurance policy contributed to a trust by a settlor, or purchased by the trustee upon the request of the...
• Section 19-3B-901 Prudent investor rule
  (a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust...
• Section 19-3B-902 Standard of care; portfolio strategy; risk and return objectives
  (a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of...
• Section 19-3B-903 Diversification
  (a) A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust...
• Section 19-3B-904 Duties at inception of trusteeship
  Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning...
• Section 19-3B-905 Reviewing compliance
  Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action...
• Section 19-3B-906 Language invoking standard of prudent investor rule
  The following terms or comparable language in the terms of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this...
• Section 19-3B-1001 Remedies for breach of trust
  (a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (b) To remedy a breach...
• Section 19-3B-1002 Damages for breach of trust
  (a) A trustee who commits a breach of trust is liable to the beneficiaries affected for: (1) the greater of: (i) the amount required to...
• Section 19-3B-1003 Damages in absence of breach
  (a) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent...
• Section 19-3B-1004 Reserved
• Section 19-3B-1005 Limitation of action against trustee
  (a) A beneficiary may not commence a proceeding against a trustee for breach of trust more than two years after the date the beneficiary or...
• Section 19-3B-1006 Reliance on trust instrument
  A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary...
• Section 19-3B-1007 Event affecting administration or distribution
  If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, then a...
• Section 19-3B-1008 Exculpation of trustee
  (a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) relieves the...
• Section 19-3B-1009 Beneficiary's consent, release, or ratification
  A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee...
• Section 19-3B-1010 Limitation on personal liability of trustee
  (a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity...
• Section 19-3B-1011 Interest as general partner
  (a) Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest as a...
• Section 19-3B-1012 Protection of person dealing with trustee
  (a) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a...
• Section 19-3B-1013 Certification of trust
  (a) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a...
• Section 19-3B-1101 Protection of special needs trusts and other similar trusts for disabled persons
  Notwithstanding the provisions of this chapter that may otherwise be applicable to a trust, no provision thereof shall apply to any special needs trust, supplemental...
• Section 19-3B-1201 Uniformity of application and construction
  In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject...
• Section 19-3B-1202 Electronic records and signatures
  The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with...
• Section 19-3B-1203 Severability clause
  If any provision of this chapter or its application to any person or circumstances is held invalid, then the invalidity does not affect other provisions...
• Section 19-3B-1204 Application to existing relationships
  (a) Except as otherwise provided in this chapter, on January 1, 2007: (1) this chapter applies to all trusts created before, on, or after January...
• Section 19-3B-1301 Trust concerning lands required to be in writing
  No trust concerning lands, except such as results by implication or construction of law, or which may be transferred or extinguished by operation of law,...
• Section 19-3B-1302 Trust void as to creditors or purchasers without notice
  No such trusts, whether implied by law or created or declared by the parties, can defeat the title of creditors or purchasers for a valuable...
• Section 19-3B-1303 Trust estate not descendible upon death of trustee
  Upon the death of a sole or surviving trustee of an express trust, the trust estate does not descend to his or her heirs or...
• Section 19-3B-1304 Trusts for employees or self-employed persons
  (a) A trust of real or personal property or real and personal property combined: (1) which is created by an employer as part of a...
• Section 19-3B-1305 Trusts consisting of insurance policies or proceeds
  Trusts consisting solely of policies of life, health, accident, or disability insurance, or of the proceeds or avails thereof, shall for the purpose of determining...

Last modified: May 3, 2021