Bill > SB179

This bill amends Alabama's Uniform Trust Code to align with the Alabama Qualified Dispositions in Trust Act and to limit the property that can be claimed by creditors. Specifically, it clarifies that for irrevocable trusts, creditors can only access the maximum amount that can be distributed to the settlor (the person who created the trust) or for their benefit, with an exception for trusts established under Chapter 3E, which likely refers to the Qualified Dispositions in Trust Act. The bill also modifies provisions related to claims against trusts that were revocable at the settlor's death, including how creditors must present claims and the trustee's responsibilities, and clarifies that a beneficiary holding a power of withdrawal in an irrevocable trust does not become a settlor upon the lapse of that power. Additionally, it expands the powers of a trustee, allowing them to engage in various financial and business transactions, manage property, and make distributions, including reimbursements for income taxes paid by the settlor, all while maintaining prudent management standards. The bill also updates the effective date for these changes to October 1, 2026.