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 while property in a revocable trust is subject to the settlor's creditors' claims, property in an irrevocable trust is generally protected, except for amounts that can be distributed to the settlor's benefit, with exceptions outlined in Chapter 3E of the code. The bill also modifies provisions related to claims against a deceased settlor's revocable trust, including notice requirements for potential claimants and the barring of claims if not presented within specified timeframes, and it clarifies the powers of a trustee, including their ability to make distributions to a settlor for income tax reimbursements without those distributions being considered available to creditors. The changes aim to provide greater certainty and protection for assets held in certain types of trusts.

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