SB227: Alabama Uniform Trust Decanting Act

• Establishes the Alabama Uniform Trust Decanting Act, granting authorized fiduciaries power to modify irrevocable or settler-only-revocable trusts by distributing assets to new trusts while maintaining the original settlor's purposes and protecting beneficiaries.

• Requires authorized fiduciaries to provide 60 days' notice to settlors, qualified beneficiaries, power holders, other fiduciaries, and the Attorney General (when applicable) before exercising decanting power, with ability to waive the notice period or file court applications for approval.

• Imposes strict limitations on decanting power including: prohibiting additions of new beneficiaries (except under limited circumstances), protecting charitable interests, maintaining tax benefits, and preventing reduction of vested interests in beneficiaries.

• Authorizes special decanting for beneficiaries with disabilities into special-needs trusts and for animal trusts with court-appointed protectors, with specific restrictions on how trust property may be used.

• Becomes effective January 1, 2019, and applies to trusts created before, on, or after the effective date if administered in Alabama or governed by Alabama law.