Code of Alabama - Title 19: Fiduciaries and Trusts - Chapter 3D - Alabama Uniform Trust Decanting Act

• Section 19-3D-1 Short title
  SHORT TITLE. This chapter may be cited as the Alabama Uniform Trust Decanting Act.
• Section 19-3D-2 Definitions
  DEFINITIONS. In this chapter the following terms have the following meanings: (1) APPOINTIVE PROPERTY. The property or property interest subject to a power of appointment....
• Section 19-3D-3 Scope
  SCOPE. (a) Except as otherwise provided in subsections (b) and (c), this chapter applies to an express trust that is irrevocable, or revocable by the...
• Section 19-3D-4 Fiduciary duty
  FIDUCIARY DUTY. (a) In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in...
• Section 19-3D-5 Application; governing law
  This chapter applies to a trust created before, on, or after January 1, 2019, which: (1) has its principal place of administration in this state,...
• Section 19-3D-6 Reasonable reliance
  REASONABLE RELIANCE. A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a...
• Section 19-3D-7 Notice; exercise of decanting power
  NOTICE; EXERCISE OF DECANTING POWER. (a) In this section, a notice period begins on the day notice is given under subsection (c) and ends 59...
• Section 19-3D-8 Representation
  REPRESENTATION. (a) Notice to a person with authority to represent and bind another person under a first-trust instrument or Chapter 3B (commencing with Section 19-3B-101)...
• Section 19-3D-9 Court involvement
  COURT INVOLVEMENT. (a) On application of an authorized fiduciary, a person entitled to notice under Section 19-3D-7 (c), a beneficiary, or with respect to a...
• Section 19-3D-10 Formalities
  FORMALITIES. An exercise of the decanting power must be made in a record signed by an authorized fiduciary. The signed record must, directly or by...
• Section 19-3D-11 Decanting power under expanded distributive dicretion
  (a) In this section the following terms have the following meanings: (1) NONCONTINGENT RIGHT. A right that is not subject to the exercise of discretion...
• Section 19-3D-12 Decanting power under limited distributive discretion
  DECANTING POWER UNDER LIMITED DISTRIBUTIVE DISCRETION. (a) In this section, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable...
• Section 19-3D-13 Trust for beneficiary with disability
  TRUST FOR BENEFICIARY WITH DISABILITY. (a) In this section the following terms have the following meanings: (1) BENEFICIARY WITH A DISABILITY. A beneficiary of a...
• Section 19-3D-14 Protection of charitable interest
  PROTECTION OF CHARITABLE INTEREST. (a) In this section the following terms have the following meanings: (1) DETERMINABLE CHARITABLE INTEREST. A charitable interest that is a...
• Section 19-3D-15 Trust limitation on decanting
  TRUST LIMITATION ON DECANTING. (a) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of: (1)...
• Section 19-3D-16 Change in compensation
  (a) If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the...
• Section 19-3D-17 Relief from liability and indemnification
  RELIEF FROM LIABILITY AND INDEMNIFICATION. (a) Except as otherwise provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for...
• Section 19-3D-18 Removal or replacement of authorized fiduciary
  REMOVAL OR REPLACEMENT OF AUTHORIZED FIDUCIARY. An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another...
• Section 19-3D-19 Tax-related limitations
  TAX-RELATED LIMITATIONS. (a) In this section the following terms have the following meanings: (1) GRANTOR TRUST. A trust as to which a settlor of a...
• Section 19-3D-20 Duration of second trust
  DURATION OF SECOND TRUST. (a) Subject to subsection (b), a second trust may have a duration that is the same as or different from the...
• Section 19-3D-21 Need to distribute not required
  NEED TO DISTRIBUTE NOT REQUIRED. An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary...
• Section 19-3D-22 Saving provision
  SAVING PROVISION. (a) If exercise of the decanting power would be effective under this chapter except that the second-trust instrument in part does not comply...
• Section 19-3D-23 Trust for care of animal
  TRUST FOR CARE OF ANIMAL. (a) In this section the following terms have the following meanings: (1) ANIMAL TRUST. A trust or an interest in...
• Section 19-3D-24 Terms of second trust
  TERMS OF SECOND TRUST. A reference in Chapter 3B (commencing with Section 19-3B-101) of this title, to a trust instrument or terms of the trust...
• Section 19-3D-25 Settlor
  SETTLOR. (a) For purposes of laws of this state other than this chapter and subject to subsection (b), a settlor of a first trust is...
• Section 19-3D-26 Later-discovered property
  LATER-DISCOVERED PROPERTY. (a) Except as otherwise provided in subsection (c), if exercise of the decanting power was intended to distribute all the principal of the...
• Section 19-3D-27 Obligations
  OBLIGATIONS. A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held...
• Section 19-3D-28 Uniformity of application and construction
  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...
• Section 19-3D-29 Relation to Electronic Signatures in Global and National Commerce Act
  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT. This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act,...

Last modified: May 3, 2021